St. Louis Real Estate BlogRecently posted or modified blog postshttps://www.sresells.com/blog/Copyright SRESells.com2024-03-14T08:45:08-07:00tag:sresells.com,2012-09-20:36447Should You Consider Getting a Home Warranty?As a first-time homebuyer, navigating the world of homeownership can be both exciting and daunting. Along with the joys of owning your own space come the realities of unexpected costs and potential repairs. That's where a home warranty can come into play.
Designed to protect homeowners against unexpected and costly repairs, a home warranty offers peace of mind by serving as an agreement between you, the homeowner, and a warranty company. By covering unexpected repair costs, a home warranty not only saves you money but also spares you the time and hassle of searching for a reliable professional.
So, is purchasing a home warranty worth it? Read along to learn more about how a warranty works and explore the pros and cons.
What are home warranties?
A home warranty is a service agreement between you, the homeowner, and a warranty company. It provides coverage for the repair and replacement of major home systems and appliances, such as the HVAC system, plumbing, and electrical components, and is not to be confused with homeowner's insurance.
How do they work?
When something that is covered breaks or stops working, you call the warranty company, pay the service fee (typically between $75-200 per visit), and schedule a technician to stop by to evaluate and repair the issue if necessary (and if it is covered).
Convenience. If you don’t have a list of professionals you trust and don't have the time to find one, you dont have to!
Not handy? No problem!
Peace of mind if you are buying an older home or if you don't have much information about how well a home's components have been maintained.
PROS
Convenience. If you don’t have a list of professionals you trust and don't have the time to find one, you dont have to!
Not handy? No problem!
Peace of mind if you are buying an older home or if you don't have much information about how well a home's components have been maintained.
It could save you thousands on big-ticket items
CONS
The company typically chooses the contractor or technician for you, so if you're dissatisfied with the service, you may not have alternative options.
Most companies impose dollar limits per repair, per item, or per year, so the entire cost of a large repair may not be covered
They determine whether to fix or replace a system or an item, and you may or may not agree with the decision
While a home warranty isn't a perfect solution to the risks and hidden costs homeowners encounter, it can offer peace of mind, particularly if you're a first-time homebuyer!
If you're considering a home warranty, send me a message — I'd be happy to send you some recommendations!
2024-03-14T08:33:48-07:002024-03-14T08:45:08-07:00Nick Wagenknechttag:sresells.com,2012-09-20:36385No One Wants To Sell Their Home.. Here's Why....Did you know that the average homeowner has nearly $200,000 in equity? This is largely due to the rapid appreciation we’ve seen over the past few years... and even though many homeowners acknowledge that the market is currently stacked solidly in their favor, most aren’t interested in selling.
Why? With historically low-interest rates locked in, homeowners are reluctant to give up their advantageous financing terms.
However, we’re still seeing record-low inventory levels, with many homeowners staying in their homes longer, despite the fact that they may actually want to move.
This is mainly due to the higher interest rates. In fact, 78% of homeowners have a rate below 5%.
If you can relate, I get it — who wants to trade in a 3% interest rate for something double that (or higher)? HOWEVER, here's something to consider... that mountain of home equity you have (which you otherwise would not have in a more typical market) can help offset the higher rate you'd be trading in for.
However, what most people don’t realize is that the mountain of home equity they have in their homes (which they otherwise would not have in a more typical market) may help soften the blow of a higher rate.
So if you’ve been thinking about making a move, consider reaching out to an agent (that’s me!) to discuss whether or not a move makes sense financially. You might be surprised!
And if you’ve been considering buying, don’t panic! Buyers are still finding homes and buying this Spring. Just make sure you have a knowledgeable and aggressive agent by your side.
Have you found yourself outgrowing your space but hesitant to make a move because of the higher interest rates? I'd love to hear your thoughts!2024-03-11T09:15:29-07:002024-03-11T09:44:14-07:00Nick Wagenknechttag:sresells.com,2012-09-20:36130Why Choosing The Right Realtor Is ImportantI get it — everyone wants to save money where they can, however, when it comes to selling what's likely your most valuable asset, your real estate agent might not be the ideal area to opt for a "budget-friendly" approach.
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If your goal is to sell your home quickly and for top dollar with the best terms, choosing the right realtor is an investment that can pay off significantly. Selling a home involves many complexities, and when done well, goes beyond simply posting it on the multiple listing service and sticking a sign in the yard.
“Can you do it for less?”
This is a question I get asked a lot during listing appointments.
... to which I typically respond, “Is that the type of person you want sitting across from the negotiating table trying to negotiate a better price for your home?”
“Is that the type of person you want to represent you in the most valuable transaction of your life?”
The agent who can’t negotiate their own commission, probably can't negotiate the highest and best price on your home with the best terms.
Moreover, an experienced agent helps you prepare your home to appeal to the most buyers, implements a strategic and dynamic marketing plan to create the most demand, negotiates the best price and terms on your behalf, and guides you throughout the entire transaction to make the process as seamless and stress-free as possible.
Here are a few red flags to look out for when interviewing agents:
The agent suggests the highest price for your house
The agent does real estate on the side, part-time
They don’t ask about your goals or plans
They have a limited marketing strategy
They have a limited online presence or very few client testimonials
Working with a GOOD, experienced, and aggressive agent is not an expense — but rather an investment in the successful sale of your largest asset. A poor choice could mean missed opportunities, undervaluing your home, and endless headaches and frustration.
When you decide to list your home with me, you're teaming up with a dedicated strategist, equipped with a modern marketing plan crafted to generate the most activity and attract more buyers so that you net the most money possible.
Ready to maximize your home's potential? Send me a message, and let's chat about your goals.
2024-02-28T10:23:07-07:002024-02-28T10:52:32-07:00Nick Wagenknechttag:sresells.com,2012-09-20:36041The Importance Of Having A Homeowner's InsuranceA question for all homeowners 📣
When you bought your home, your lender required you to get homeowner's insurance, so you hurriedly made a decision without truly comparing different policies or providers. You may have even decided to just bundle policies with the insurance company you got your car insurance through 10 years ago... does this sound familiar?
Believe it or not, 3 out of 5 people are underinsured by at least 20% on their homeowner's insurance policy — which could end up costing hundreds of thousands of dollars if the unthinkable happens. Your home is most likely the largest asset you'll ever own, so it is crucial to ensure that it is protected in the event of an emergency.
If you haven't reviewed your homeowner's policy in a few years, or just want to make sure you're adequately covered, this post is for you! Read along for a few tips on choosing the right coverage to ensure you're properly protected.
Do you have enough insurance to rebuild your home?
Your policy should cover the cost of rebuilding your home at current construction costs. In other words, you should have enough insurance to fully rebuild your home today in the event that it is completely destroyed.
PRO TIP: Did you finish your basement or redo your kitchen? Make sure you let your insurance company know when you make upgrades so that you are adequately insured.
Do you have enough insurance to replace all of your possessions?
To determine whether you have enough coverage, create a home inventory list — this should be a detailed list of everything you own and the cost to replace these items. Not only will this help you determine how much coverage you need, but it will also make the claims process much smoother in the event of an emergency.
PRO TIP: Download the app Encircle. It helps you to easily create a home inventory list using your phone!
Do you have enough insurance to protect your assets?
Homeowners insurance also provides liability protection, which protects your financial assets in the event that you or another member of your household are legally responsible for damage to another person or their property.
For example, if a guest falls down your stairs or is otherwise injured on your property, your son throws a football through the neighbor’s window, one of your child’s friends gets Injured on your trampoline, etc. Be sure to select a liability limit that properly covers what you have in assets.
A FEW more quick TIPS:
Be aware of exclusions.
Depending on where you live, there will be a list of things that a standard policy won't cover. This includes earthquakes, landslides, and flooding. Other additional coverage and endorsements include water line, sewer line coverage, equipment breakdown, and home business. DID YOU KNOW? If the sewer line breaks between your home and where It connects to the street, you are on the hook to replace it. That can cost upwards of $10-15,000.
Understand your deductibles!
It's important to pay attention to your deductibles for property damage. Your deductible is the portion of the claim you're responsible for, so make sure the deductible amount is within your budget. For example, you may not want to elect the policy with a lower monthly premium that requires a $5,000 deductible because anything under $5,000 will come out of your pocket.
REMINDER: Review your homeowners & Auto insurance policies every year
PRO TIP: find an insurance rep you trust! If the worst-case scenario happens, you’ll be happy you did.
Most people are not fully aware of what they are covered for until they need it. Don't let that happen to you! Peace of mind starts with the right coverage.
Let me know if you need a great insurance agent — I have amazing connections, and it would be worth a checkup.2024-02-23T08:09:20-07:002024-02-23T09:16:44-07:00Nick Wagenknechttag:sresells.com,2012-09-20:35879How To Maximize Tax Refund (To Help You Buy A House This Year)It's officially tax refund season! While you may be daydreaming of a tropical vacation, consider redirecting that refund into a lasting investment – your future down payment.<br /><img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/Tax_and_homeownership.jpg" width="646" height="350" /><br />Here are a few ways you can maximize that tax refund and expedite your path to homeownership! <br /><br />Tip #1:
If you receive a 1099, you don’t have to pay taxes on the total amount. Don’t report your 1099 income without including your tax-deductable write-offs!<br /><br />Tip #2:
Consider contributing to retirement accounts like a 401(k) or IRA. Contributions to these accounts can lower your taxable income and potentially increase your refund. If you forgot to max out your retirement accounts, you still have time! The deadline to contribute to an IRA Is 4/15/24.
Tip #3:
Check for state and local tax benefits. For example, some states provide tax benefits for college savings plans.<br /><br />Tip #4:
Explore ALL available tax credits, such as the Child Tax Credit, Earned Income Tax Credit, or education-related credits. These can directly reduce your tax liability.
Tip #5:
Lastly, consider hiring a tax advisor. They typically have a broad understanding of tax laws and regulations and can offer insights on tax planning, compliance, and maximizing tax refunds.<br /><br />
As tax refund season rolls around, it's tempting to splurge on immediate indulgences. However, why not leverage this opportunity to sow seeds for a brighter financial future, particularly towards your dream of homeownership?
Remember, every dollar counts. Whether it's optimizing deductions, contributing to retirement accounts, exploring state and local tax benefits, or delving into available tax credits, there are numerous avenues to make the most of your tax refund.
So, before you book that exotic getaway, consider investing in yourself. Redirect your tax refund towards building a solid foundation for homeownership. And if navigating the tax landscape seems daunting, don't hesitate to seek guidance from a qualified tax advisor.
By being proactive and strategic with your tax refund, you're not just receiving a temporary windfall but sowing the seeds for long-term financial security. Here's to smart investments and a future filled with possibilities. Happy tax season!
2024-02-15T09:02:10-07:002024-02-15T09:40:41-07:00Nick Wagenknechttag:sresells.com,2012-09-20:356854 ways That You Can Buy And Sell At The Same TimeNavigating the buy-sell balancing act can be challenging (not to mention overwhelming), but with the right strategy and a good agent, it's entirely achievable.
Read on for a few ways to make buying and selling simultaneously work for you and your family.
Option 1: A Leaseback
A leaseback allows you to sell your home first and then rent it back temporarily from the new owner. This option buys you time to find and close on your next home without having to move twice. Basically, you become the renter of your own home once you settle (for a period of 30-60 days), providing you with the funds for the downpayment on your next home.
Option 2: A Bridge Loan
This type of loan acts as a temporary financing solution, bridging the financial gap between selling your current home and purchasing a new home — giving you the downpayment for your new home. With this option, you must qualify to hold your existing mortgage, the new mortgage, and the bridge loan.
Option 3: A Home Equity Loan Or Line Of Credit
A home equity loan or line of credit (HELOC) allows you to borrow against the equity of your current home. You can use this money as your downpayment on the new home and pay it off once your current house sells. This is another option where you must qualify to hold your existing mortgage, the new mortgage, and the home equity loan.
Option 4: Buy With A Home Sale Contingency
While this option alleviates most of the stress of buying and selling simultaneously, sellers don’t typically prefer a home sale contingency, as it puts their home sale at risk This is because if you end up not selling your current home or backing out of the contract, they are back to square one. Although difficult in our current market, this option is not impossible! Look for homes that have been sitting for more than two weeks.
A Few Tips If You’re Buying & Selling At The Same Time
1. HAVE A BACKUP PLAN FOR WHERE YOU WILL GO IF THE TIMING DOES NOT PERFECTLY ALIGN
2. NEGOTIATE THE TIMELINE WHEN SELLING, NOT JUST THE MONEY
3. PREPARE YOUR HOME TO SHOW WELL & SELL QUICKLY
4. KNOW EXACTLY WHAT YOU’RE LOOKING FOR IN A NEW HOME & YOUR NON-NEGOTIABLES
Buying and selling at the same time can be complicated and at times, stressful, but my clients do it all the time. And in the end, they’re all smiles!
As your agent, I'm here to guide you and help make the entire process as enjoyable as possible, so if you're thinking of making a move, send me a message. Along with a trusted lender, I can help you decide which option may be best for you!2024-02-06T08:05:44-07:002024-02-06T08:22:50-07:00Nick Wagenknechttag:sresells.com,2012-09-20:35548The Thruth About ForeclosuresIf you've been following the news lately, you may have seen a headline or two about an increase in foreclosures and bankruptcies. Although the numbers have increased slightly since last year, experts don't believe a wave of foreclosures is coming.<br /><br />
Why?
⓵ Most homeowners have a lot of equity in their homes.
Due to the rapidly rising home prices over the past few years, most homeowners are sitting on a cushion of equity. Therefore, if they do fall on hard times, they can tap into that equity or sell and pay off any expenses instead of facing foreclosure or bankruptcy (and may even walk away with a profit).
⓶ There are not many serious delinquencies.
Since the housing market crash in 2008, lending standards have tightened significantly, leading to more qualified buyers who can afford to make their mortgage payments. This has resulted in very few homeowners falling seriously behind on their mortgage payments.
On top of that, due to the tighter lending standards, there are very few delinquencies. Basically, fewer people are seriously behind on their mortgage payments right now.
In today's media-driven world, headlines often paint a broad picture of the real estate market, but here's the truth: real estate is hyper-local. What's happening nationally typically does not reflect what's happening in our area.2024-01-30T10:02:51-07:002024-01-30T10:49:47-07:00Nick Wagenknechttag:sresells.com,2012-09-20:35420How Much Is Waiting To Buy Costing You?<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/Copy_of_Copy_of_January_2024_Social_Media_-_Industrial_-_by_Blink_Marketing_Agency_525_x_350_px.jpg" width="525" height="350" />
It's no secret that recent years have been challenging for buyers, but if you've been sitting on the sidelines waiting for the market to "crash" or for interest rates to drop ... you may want to reconsider.
Ideally, we would all buy a home with a low-interest rate, for a great price... but in our current landscape, that probably won't happen anytime soon. And if you think we'll see interest rates below 4% again in our lifetime, think again.
If you've been waiting for the "perfect" time to buy, read through this post to read about how much it could be costing you.
Let's talk about.....
INTEREST RATES
Waiting to buy a home until interest rates drop? You may want to reconsider... While lower interest rates make it cheaper to borrow money and increase your overall buying power, interest rates are just one factor that determines affordability.
DEMAND
When rates drop, demand increases because more people can afford to buy. The result? Prices tend to increase. So, if you are waiting for interest rates to drop, you may find yourself back in a multiple-offer, highly competitive situation again. There just aren't enough homes for sale.... and if rates fall, this likely won't change. You can always refinance to a lower rate if rates decrease, but you can’t reduce the price you paid for your home...
PRICES
One of the most obvious costs of waiting to buy a home is the year-over-year increase in property prices (just take a look back at just the past 3 years..) Experts predict home prices to increase every year through 2027.
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NOW FOR A LITTLE MATH
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BOTTOM LINE:
Buying now means you can start building equity immediately. With rent prices sky high, you’re only throwing your money away instead of investing in an appreciating asset. So stop stressing about trying to time the market or listening to the media, and remember that there's never a "bad" time to buy when you know it's right for you.
There's never a one-size-fits-all answer to whether now is the right time to buy a home, but if you're serious about buying, the best thing you can do is talk to a trusted agent to discuss your options.
2024-01-25T08:00:01-07:002024-01-25T08:39:05-07:00Nick Wagenknechttag:sresells.com,2012-09-20:35330How Do You Know If You Can Afford To Buy A House This Year?Wondering if you're financially ready to buy a house? A home is likely the largest purchase you will ever make, so it's important that you feel confident about how much you can afford before you start looking at homes.
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The first step in the homebuying journey is to get pre-approved, but in case you're not quite ready to speak with a lender just yet, I've outlined a few guidelines that can act as a starting point for answering the question: "Can I afford to buy a house right now?"
Have you ever thought to yourself “How much can I afford?”<br />
Let’s review the 28/36 “rule”
HOUSING EXPENSE RATIO (28) —
This rule suggests that your total monthly housing expenses (mortgage, property taxes, homeowner's insurance, HOA fee, etc.) should not exceed 28% of your gross monthly income.
DEBT-TO-INCOME RATIO (36) —
This rule suggests that your TOTAL debt payments, including your housing expenses (credit cards, car loans, student loans, etc. + your total mortgage payment), should not exceed 36% of your gross monthly income.
For example...
If your salary is $75,000 annually, Your gross monthly income is $6,250 ($75,000 / 12) *gross is pre-tax*
Therefore, your total housing costs (principal, interest, taxes, insurance, HOA / condo fees) Should Not exceed $1,750 per month (28% of $6,250)
and your total expenses (mortgage payments, student loans, car payments, etc.) Should Not exceed $2,250 per month (36% of $6,250)
But how does that equate to price?
That depends on a few factors, including:
Your downpayment The more money you put down, the lower the payment. Put 20% down, and you get rid of monthly mortgage insurance. Don’t forget to factor in closing costs when budgeting for a downpayment — closing costs can range anywhere between 2-4% of the purchase price.
INTEREST RATES (and your credit) Your credit and downpayment will determine your interest rate (among other factors)
TAXES When using those fancy online mortgage calculators, don’t forget to add the property taxes to your payment! Take the annual taxes and divide by 12 to get what you would pay monthly.
CONDO / HOA FEES If a home is in a Condo or Homeowner's association, you can pay anywhere from $100-500+ a month. This will ultimately decrease your buying power & how much you can afford. For example, at a 6.5% interest rate, a $200/monthly HOA fee will decrease your buying power by about $40,000
QUICK TIP: It's important to remember that lenders will qualify you based on your GROSS, pre-taxable income, which is typically not your take-home pay, so you should put together a budget to ensure that you are going to be comfortable with your new mortgage payment — you don't want to end up "house poor."
Developing a comprehensive budget that includes all your expenses, savings goals, and income sources will provide a more accurate picture of what you can comfortably afford.
Still feeling a bit unsure? I'm here to help! Send me a message, and let's discuss your homeownership goals!
2024-01-22T08:25:03-07:002024-01-22T09:00:18-07:00Nick Wagenknechttag:sresells.com,2012-09-20:35180Should You Sell Your Home This Year?Have you ever said to yourself, "I want to sell my home BUT...."
If you've been on the fence about selling, this post might help you to see if now might be the right time to make a move, or if it might make more sense to stay put for a bit longer.
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Do you feel the need to upsize or downsize?
If you’ve outgrown your home or have too much to maintain, it may be time to consider moving.
Adding an addition or finishing your basement may give you more space in your current home, however, it's important to consider whether these improvements will add value, or price you out of your current neighborhood. When the time comes to sell, the last thing you want is to lose all that money you put into the renovation.
Do you feel Like your current neighborhood is no longer a good fit?
Sometimes, it may not be the home but rather the neighborhood or area that you have outgrown. OR maybe it’s your lot or specific location. Do you want a larger yard or more privacy? Off-street parking? Access to public transportation, or want to be closer to more shopping and dining? Want to be in a better school district?
Whatever the reason, if you want (or need) to be in a different area or neighborhood, it may be time to consider selling.
Can you make a profit if you sell your home?
Do you have equity in your home? For many people, interest rates are holding them back from making a move... (I get it, who wants to trade in a 2-3% rate for a 6-7% rate)...
HOWEVER, due to the rapid appreciation we’ve seen in home prices in recent years, you may have built up a lot more equity than you would have in a more *normal* market. This increase in your downpayment should somewhat offset the higher interest rate that you’ll be trading in.
Wondering how much equity you have in your home? I’d be happy to send you a free home valuation, equity assessment, and seller net sheet so that you can decide if making a move makes sense financially.
Are you emotionally ready to sell?
Selling a home brings about a wave of different emotions. There is excitement in a fresh start, but there may also be sadness in leaving a home you’ve loved for years... all of which are completely normal.
If you can honestly answer “yes” to these questions, you just might be emotionally ready to sell:
Are you willing to remove your personal items from the home to stage it?
Can you commit to the long haul of having a house on the market and constant showings and open houses?
Are you ready to hear negative comments about the home without getting offended and defensive?
<br />Our current real estate market can be challenging to navigate, but having a solid plan and a good agent by your side can significantly impact your experience and make all the difference!
Thinking of making a move in the next 6 months? send me a message to get a free copy of my Seller guide, and let’s discuss the next steps!
2024-01-15T09:14:08-07:002024-01-15T09:39:06-07:00Nick Wagenknechttag:sresells.com,2012-09-20:34674Relocating to a new neighborhood tipsWhen house hunting, it’s easy to get swept away with all of the interior details of a home. Although the home itself is undoubtedly important, it's equally as important to take into consideration the neighborhood and surrounding area. After all, location plays a crucial role in your quality of life and your property's long-term value.
Whether you're moving for career opportunities, a change of scenery, or a fresh start, the process of relocation brings with it a unique set of challenges and opportunities.
If you're planning a move to a new neighborhood, I've put together some of my top tips for gathering hyperlocal information to help you navigate this decision.
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In conclusion, relocating to a new neighborhood is a significant life transition, but with careful planning and a positive mindset, it can be a rewarding experience. By taking the time to research, connect with the community, and organize your move effectively, you set the stage for a smoother transition. Embrace the opportunity to explore a new environment, create lasting connections with neighbors, and make your new house truly feel like home.
Remember, the process may have its challenges, but each obstacle is an opportunity for growth and adaptation. As you embark on this journey, stay positive, be patient, and savor the excitement of starting a new chapter in your life. Whether it's discovering hidden gems in your new neighborhood or simply enjoying the pleasure of a fresh start, the possibilities are endless. Happy settling into your new home!2023-12-21T08:23:15-07:002023-12-21T09:19:22-07:00Nick Wagenknechttag:sresells.com,2012-09-20:34449Is It Time To Upgrade Your Home?<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/1....jpg" width="525" height="350" />
More often than not, we tend to become overly comfortable in our homes, causing us to overlook the fact that we may have outgrown the space. <br />Life gets busy, and just the thought of selling, finding a new place, and establishing new routines can feel overwhelming (not to mention you might be sitting on a 2-3% interest rate).
If you’ve been contemplating whether or not it's time to make a move, I've created a checklist that should bring a little clarity to the matter.
You’re Growing
Whether you have a newborn or your kids are simply getting older, if you’re busting at the seams it may be time to find something larger.
It could be that you need more bedrooms, storage space, a finished basement, or a bigger backyard (or all of the above!) This is the most common reason people upgrade their home.
Your home needs updating
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When you’re focused more on the jobs that need doing rather than enjoying the space you’re in, it may be time to make a move. Not to mention, renovations are expensive.
If your current home needs costly repairs, or you dread the thought of having to go through a 6-month kitchen reno with 3 kids and a dog, a move might be worth considering.
When you’re weighing the pros and cons of a renovation or addition, don’t forget to consider resale value. You don’t want to price yourself out of your current neighborhood.
You’re working remotely
This goes hand in hand with needing more space.
If you're working from home more than you used to and require a dedicated workspace that's not your kitchen table, it may be time for an upgrade.
Alternatively, if you’re working remotely and have been dreaming of being further from the office and in a larger home, now may be the perfect time to consider a move.
Your ideal neighborhood needs have changed
Sometimes, you simply outgrow your neighborhood.
Looking for a home near a preferred school for your kids?
Or hoping to move closer to family?
If your neighborhood is no longer serving you, it’s okay to make the move to a new home.
You have equity in your home<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/5....jpg" width="525" height="350" />
Many homeowners right now have an incredible amount of equity that has increased significantly over the past few years, and this equity could serve as the downpayment for your new home.
Your trusted real estate agent can help you figure out your current equity position.
This evaluation could help in your decision-making process, whether it's exploring a move or using that equity for something else —such as a renovation of your current home! How much equity you have may surprise you!
In conclusion, the decision to move is a complex one, intertwined with the dynamics of personal growth, evolving needs, and changing circumstances. Whether you find yourself yearning for more space, longing for necessary updates, adapting to remote work demands, seeking a new neighborhood, or recognizing the untapped equity in your home, the realization that you've outgrown your current living situation can be both liberating and daunting.
Embracing change opens the door to new possibilities, and assessing your unique situation against the checklist I've provided can offer valuable insights as you navigate the path to a home that truly suits the chapter you're in.
Remember, your home is a reflection of your aspirations, and by recognizing when it's time for a change, you empower yourself to create a space that aligns with the life you envision.
2023-12-13T09:00:00-07:002024-01-15T08:22:09-07:00Nick Wagenknechttag:sresells.com,2012-09-20:32126How To Create Black Friday Demand For Your Home No Matter What time of the year<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/blog_photos_10.png" width="1050" height="700" class="img_box_center" />
While Black Friday is traditionally associated with retail and big-box stores, the principles of creating demand can be applied to real estate too. In this post, we'll explore strategic and creative ways to boost interest in your property, whether it's spring, summer, fall, or yes, even in the middle of the year. Let's dive in!
Setting the Stage
To create demand, you need to set the stage and make your property stand out. According to a study by the National Association of Realtors,
Homes with high-quality photos receive 118% more online views, emphasizing the importance of professional photography and virtual tours to capture potential buyers' attention.
Crafting Irresistible Offers
Just like Black Friday deals, your home needs enticing offers. Research from Zillow indicates that
homes offering incentives, such as a home warranty or covering closing costs, spend less time on the market and often sell for a higher price. Highlight these perks in your marketing materials to attract potential buyers or renters.
Strategic Pricing
Implementing strategic pricing is crucial in generating demand. According to Redfin,
homes priced just 1% below market value sell on average three days faster. Create a sense of urgency by pricing your home competitively, encouraging interested parties to act quickly.
Hosting Virtual Events
In a world increasingly connected through technology, leverage the power of virtual events to showcase your home. According to a survey by the National Association of Realtors,
95% of home buyers use online websites for their home search. Host virtual open houses or walkthroughs, promoting them through social media and email campaigns to maximize reach.
Utilizing Social Media
Harness the potential of social media platforms to create buzz around your property. According to the Pew Research Center,
69% of adults in the United States use social media. Craft engaging posts featuring high-quality images, compelling descriptions, and relevant hashtags. Running targeted ads can increase your property's visibility, reaching a wider audience.
Tapping into Seasonal Themes
While it may not be Black Friday in the traditional sense, you can infuse a sense of urgency by tapping into seasonal themes. A study by Realtor.com found that
homes listed in the spring sell 18.5 days faster than those listed at other times. Create limited-time promotions, such as offering a discounted rate for a specific period, to capitalize on seasonal demand.
In conclusion, creating Black Friday demand for your home is about strategically positioning your property, crafting irresistible offers, utilizing technology, and tapping into seasonal opportunities. By implementing these strategies, backed by relevant statistics, you can generate interest in your home year-round and potentially secure a deal that benefits both you and the buyer or renter. Happy selling!2023-11-21T10:10:00-07:002023-11-21T10:24:49-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31896Top Tips for a Smooth Move with Kids: Turn Relocation into an Adventure!<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/123.jpg" width="643" height="350" /><br />Moving with your family can be a challenge, especially when kids are involved. However, with careful planning and a positive mindset, you can transform the moving process into an exciting adventure for everyone. In this post, we'll explore some invaluable "Moving with Kids" tips to make your relocation as smooth and enjoyable as possible.
Involve Them in the Process
Moving is a family affair, and engaging your kids in the process is key to a successful transition. Discuss the move openly, answer their questions, and consider taking them to visit the new home and neighborhood. This hands-on approach not only addresses their concerns but builds excitement for the upcoming journey.
Create a Moving Timeline
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/456.jpg" width="639" height="350" /><br />Break down the moving process into a timeline and communicate it with your kids. This visual representation, including key dates like packing days and moving day, helps them understand and anticipate the various stages of the move.
Pack a 'Moving Day' Kit
Ease the transition for your kids by preparing a special bag or box labeled as their "moving day" kit. Packed with favorite toys, snacks, and comfort items, this personalized kit ensures they have familiar items within reach during the move.
Create a Countdown
Build anticipation by crafting a countdown to the moving day. A colorful calendar that allows your kids to mark off the days adds an exciting element to the process and helps manage expectations.
Organize a Goodbye Gathering
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Before departing, consider arranging a farewell gathering with friends and neighbors. This positive event allows your kids to say goodbye, exchange contact information, and create lasting memories, turning farewells into celebrations.
Explore the New Neighborhood Together
Upon arrival at the new home, explore the neighborhood with your kids. Visit local parks, schools, and community centers to familiarize them with the surroundings, making the adjustment process smoother and fostering a sense of belonging.
Set Up Their Space First
Prioritize setting up your children's rooms first to provide a sense of security amidst the new environment. Involving them in arranging their room and adding personal touches helps create a space that feels uniquely theirs.
Maintain Routine and Normalcy
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Amidst the moving chaos, strive to maintain a sense of routine. Consistent meal times, bedtime rituals, and daily activities provide stability and help ease the transition for your kids.
Embarking on a move with kids may seem daunting, but with this expert "Moving with Kids" tips, you can turn it into a memorable adventure for the entire family. By involving your children, creating a supportive environment, and maintaining a sense of normalcy, the moving process becomes a positive experience that brings your family closer together.2023-11-14T08:21:11-07:002023-11-14T09:50:25-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31722To Buy or Not to Buy: Home Sweet (Owned) Home or Renters' Paradise?Deciding whether to buy or rent your first home is a significant choice that can impact your financial future. In this blog post, we'll provide a detailed comparison of these options, drawing on comprehensive data to help you make an informed decision.
Financial Considerations
When it comes to finances, let's break down the numbers:
- According to Statista, the median monthly rent in the U.S. was $1,200 in 2021, while the median home price was around $350,000.<br />- Federal Reserve Economic Data (FRED) shows that mortgage rates are currently at historic lows, making homeownership more affordable.
Flexibility and Commitment
Renting offers flexibility, but it also comes with some limitations:
- Data from Zillow Research indicates that renters often face annual rent increases. In contrast, homeowners with fixed-rate mortgages enjoy stable monthly payments.<br />- NAR data shows that first-time homebuyers typically stay in their homes for 10 years, indicating a degree of commitment, but also potential long-term equity benefits.
Building Equity
Building wealth through equity is one of the key advantages of homeownership:
- NAR data reveals that homeowners' net worth is significantly higher than that of renters.<br />- Over the past decade, national home prices appreciated by 54%, according to Zillow Research.
Maintenance and Repairs
Responsibility for property maintenance varies:
- With renting, landlords typically handle maintenance, while homeowners must budget for repairs themselves. <br />- The U.S. Census Bureau reports that homeowners spend an average of $3,435 annually on maintenance and repairs.
Tax Implications
Consider tax benefits and deductions:
- The Mortgage Interest Deduction (MID) can significantly reduce taxable income for homeowners.<br />- According to the IRS, property tax deductions can further decrease your tax burden.
Market Conditions
Understanding the real estate market is essential:
- Data from NAR and Zillow Research can help you assess supply and demand in your target area.<br />- Studying market trends and forecasts can influence your decision.
Personal Lifestyle and Goals
Consider your unique circumstances:
- Pew Research Center data on generational trends may reveal how homeownership fits your life stage.<br />- Your lifestyle and long-term plans should influence your choice.
Renting Scenarios
Let's explore when renting makes sense:
- In areas with soaring property values and uncertain job stability, renting may be more practical.<br />- For those with short-term housing needs, flexibility is key.
Buying Scenarios
Now, when is buying the right choice:
- If you have a stable job and long-term commitment to an area, homeownership may be your best bet.<br />- Looking to build long-term wealth? Data on equity growth suggests buying is a favorable option.
Making the Decision
In conclusion, the choice between buying and renting depends on your unique situation. Use the data and insights from this comprehensive comparison to make an informed decision. It's not just a financial decision; it's about your lifestyle and future goals.
<br />For more information on real estate and expert advice, explore our blog and reach out to us with any questions you may have.
2023-11-07T09:43:16-07:002023-11-08T10:34:11-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31584Future-proofing Tomorrow: Nurturing Kids' Dreams of Future Homeownership through Smart Money Skills and Real Estate Insight<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/3.1.jpg" width="661" height="350" style="vertical-align: middle;" />
In a world where financial literacy and planning for the future are crucial, instilling these values in children early on is an invaluable gift. One of the most significant aspirations for many individuals is owning a home. The journey towards homeownership involves not only financial prudence but also strategic investments. Teaching children about finances, income generation, and the importance of real estate in achieving their dreams is an essential part of their education and future success.
"Rich Dad Poor Dad" by Robert T. Kiyosaki is not just a book about money; it's a narrative that illuminates the stark difference in financial mindsets and the transformative power of financial education. Kiyosaki, through his storytelling, contrasts the contrasting approaches to money and wealth between his own "poor dad" (his biological father) and his "rich dad" (his friend's father). The fundamental lessons he learned from these two figures provide a powerful framework for understanding the importance of financial education, especially for children.
Much like Kiyosaki's experiences, the way we introduce children to financial literacy and the world of real estate can shape their entire financial future. This blog post aims to delve into the critical lessons of "Rich Dad Poor Dad" and intertwine them with the necessity of teaching children about money, income generation, and the pivotal role that real estate plays in nurturing their dreams of future homeownership.
Financial Education for Children
Financial education is a powerful tool that equips children with the skills to manage money, make informed decisions, and plan for their future. It’s not just about understanding numbers and budgets but also about fostering a mindset of responsibility, discipline, and resourcefulness.
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Research by the National Endowment for Financial Education (NEFE) has demonstrated that children who receive financial education are more likely to save, budget, and have higher financial literacy as they grow into adulthood.
In addition, Studies published in "The Journal of Consumer Affairs" reveal that early financial education significantly affects financial behaviors in adulthood, influencing savings habits, investment decisions, and overall financial well-being.
Starting with basic concepts like saving, budgeting, and understanding the value of money, parents and educators can gradually introduce more complex ideas such as investing, compounding interest, and different forms of income generation. Practical lessons in financial management can include tasks like managing an allowance, setting savings goals, and understanding the concepts of investing in assets.
Earning Income for Future Homeownership
Encouraging children to think entrepreneurially and understand various ways to earn money fosters a mindset of self-reliance and opens their eyes to the possibilities of generating income.
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/8...jpg" width="598" height="399" />
Programs like Junior Achievement have demonstrated a positive impact on financial literacy among children, leading to increased savings behaviors, better money management skills, and a deeper understanding of financial concepts.
Whether it’s through starting a small business, investing in stocks, or exploring the gig economy, the idea is to help children recognize that there are numerous ways to create wealth.
By engaging in these activities, children not only learn the value of hard work and perseverance but also get a taste of financial independence. These experiences play a vital role in shaping their attitudes toward money and laying the groundwork for their future financial decisions.
The Importance of Homeownership and Real Estate Investing
Owning a home is often a significant milestone for many individuals and families. Beyond the emotional and psychological security it offers, homeownership is an investment that can provide financial stability and growth.
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Reports from the National Association of Realtors (NAR) and financial institutions consistently show that historically, real estate values tend to appreciate over the long term. Studies from academic journals such as "Real Estate Economics" indicate that a significant portion of household wealth in the United States comes from real estate investments.
Real estate is one of the most traditional and reliable forms of investment. Property values tend to appreciate over time, making it an attractive long-term investment. Educating children about real estate investing not only introduces them to the concept of asset growth but also emphasizes the potential for passive income through rental properties or property appreciation.
Why Real Estate Is Essential for Future Financial Goals<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/5...jpg" width="561" height="374" style="font-size: 17px;" />
Real estate offers numerous advantages, including:
Wealth Accumulation: Property values generally increase over time, building equity and creating wealth. Statistics from the U.S. Department of Housing and Urban Development (HUD) highlight the social and economic benefits of homeownership, including stability, community involvement, and the potential for wealth accumulation through home equity.
Passive Income: Rental properties offer a steady stream of income, providing financial security and flexibility. Reports from Fannie Mae and Freddie Mac often detail trends in mortgage lending, homeownership rates, and the impact of housing policies on the real estate market, affirming the significance of real estate in wealth-building.
Diversification: Real estate can diversify investment portfolios, reducing risk and increasing potential returns.
Conclusion
Empowering children with financial education, teaching them to generate income, and familiarizing them with the significance of real estate and homeownership sets them on a path toward a financially secure future. By nurturing a strong financial foundation from a young age, children can make informed decisions and pursue their dreams of owning a home or even engaging in real estate investments. The lessons they learn today will be invaluable in helping them navigate the complex financial landscape of tomorrow.2023-10-31T09:14:16-07:002023-10-31T10:34:11-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31441The Dark Side of HOAs: Horror Stories and How to Avoid ThemHomeowners' Associations (HOAs) are a common aspect of many neighborhoods and communities. While they often serve valuable functions, they can sometimes take a sinister turn, leading to disputes and problems that resemble horror stories. In this blog, we'll explore some of the darker aspects of HOAs, sharing real-life horror stories, and offering advice on how to navigate these issues successfully.
The Horror Stories
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The Overbearing HOA Board: Imagine a situation where the HOA board becomes excessively controlling, enforcing an overwhelming list of rules and restrictions. Homeowners might find themselves embroiled in disputes over seemingly trivial matters, such as the color of their front door or the type of plants in their garden.
The Nightmare Neighbor: A nightmare neighbor within an HOA can cause countless problems. Whether it's a noisy resident, a nuisance pet owner, or someone who consistently flouts the rules, these situations can lead to frustration and even legal disputes within the community.
Financial Frights: Mismanagement of HOA finances can lead to increased fees, unexpected assessments, or even the possibility of bankruptcy. Imagine homeowners receiving surprise bills for repairs or services that should have been adequately budgeted for.
Lack of Transparency: In some HOAs, the lack of transparency in decision-making and financial matters can leave residents feeling in the dark. When residents are unaware of how their fees are being used or important decisions are made, it can lead to a sense of powerlessness and frustration.
How to Avoid These Nightmares
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Thoroughly Review HOA Documents: Before buying a property within an HOA, carefully review the association's governing documents, including bylaws, rules, and regulations. Understand what is expected of you as a homeowner.
Participate in HOA Meetings: Get involved in your HOA by attending meetings and joining committees. Being an active and informed member can help shape the community in a positive way and prevent overreach by the board.
Know Your Rights: Familiarize yourself with state and local laws governing HOAs. If you believe your rights are being violated, seek legal advice.
Open Communication: Encourage open and respectful communication within the community. Address concerns or disputes with your neighbors or HOA board members directly and professionally.
Seek Legal Counsel When Necessary: If you find yourself in a serious dispute with your HOA that cannot be resolved through negotiation, consider seeking legal advice to protect your rights and interests.
Conclusion: While HOAs play a crucial role in maintaining the aesthetics and standards of many communities, they can turn into a nightmare when mismanaged or overbearing. By being an informed and proactive homeowner, you can avoid falling victim to the dark side of HOAs and help create a harmonious and well-functioning community for all residents. Remember, knowledge and communication are your best tools to prevent HOA horror stories from becoming your reality.2023-10-26T07:42:48-07:002023-10-26T08:54:05-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31370The Perks Of Selling your House When Inventory Is Low When it comes to <a href="https://www.keepingcurrentmatters.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">selling your house</a>, you’re probably trying to juggle the current market conditions and your <a href="https://www.keepingcurrentmatters.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">own needs</a> as you plan your move.
One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current <a href="https://www.keepingcurrentmatters.com/2023/08/25/todays-housing-market-has-only-half-the-usual-inventory-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> situation and what it means for you.
The Supply of Homes for Sale Is Far Below the Norm
When you’re selling something, it helps if what you’re selling is in demand, but is also in <a href="https://www.keepingcurrentmatters.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">low supply</a>. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale.
To tell the story of just how low <a href="https://www.keepingcurrentmatters.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">inventory</a> is, here’s the latest information on active listings, or homes available for sale. The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to show how many active listings there were in September of this year compared to what’s more typical in the market.
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" /></a>
As you can see in the graph, if you look at the last normal years for the market (shown in the blue bars) versus the latest numbers for this year (shown in the red bar), it’s clear <a href="https://www.keepingcurrentmatters.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> is still far lower than the norm.
What That Means for You
<a href="https://www.keepingcurrentmatters.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">Buyers</a> have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average <a href="https://www.keepingcurrentmatters.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">seller</a> is getting multiple offers from eager buyers. Based on the latest data from the <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">Confidence Index</a> from the National Association of Realtors (NAR):
69% of homes sold in less than a month.
2.6 offers: the average number of offers on recently sold homes.
An <a href="https://www.realtor.com/research/september-2023-data/" rel="noopener noreferrer" target="_blank">article</a> from Realtor.com also explains how the limited number of houses for sale benefits you if you’re selling:
“. . . homes spent two weeks less on the market this past month than they did in the average September from 2017 to 2019 . . . as still-limited supply spurs homebuyers to act quickly . . .”
Bottom Line
Because the supply of homes for sale is so low, buyers desperately want more options – and your house may be just what they’re looking for. If you work with a trusted local agent to get your house listed at the right price for today’s market. You could still see it sell quickly and potentially get multiple offers.2023-10-24T08:18:13-07:002023-10-24T08:24:36-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31188How You Can Buy The Home You Want Despite Higher Interest Rates<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/buy_the_home_you_want_1.png" width="800" height="2000" />
If you've been on the fence about buying, let's chat! I'd be happy to answer any questions you may have about our current market and help you come up with a plan to reach your goals.2023-10-17T08:53:01-07:002023-10-17T09:15:14-07:00Nick Wagenknechttag:sresells.com,2012-09-20:31075Real Estate Agents in a Digital Age: Do You Still Need One?In today's fast-paced digital age, the real estate landscape is evolving at an unprecedented pace. The advent of technology and the rise of digital platforms have transformed the way we buy and sell properties. From popular websites like Zillow and Trulia to online mortgage lenders, homebuyers now have the power to browse listings and explore potential homes without relying on a real estate agent for every step of the process.
With easy access to online listings, virtual tours, and a wealth of information at our fingertips, a common question arises: "Do you still need a real estate agent?" Explore the changing role of real estate agents and determine whether they remain essential in the digital age.
Digital Transformation of Real Estate
The digital revolution has significantly impacted the real estate industry. Property listings once limited to printed brochures and classified ads, have shifted online, making it easier than ever for buyers to search for homes. Virtual tours and 3D property images offer an immersive experience that was unimaginable just a few years ago. As a result, home buyers and sellers now have a wealth of information at their disposal.
Traditional Roles of Real Estate Agents
Real estate agents have long played pivotal roles in property transactions, and these roles remain relevant today. They provide indispensable expertise on the local market, assisting buyers in finding the right neighborhoods and sellers in setting appropriate listing prices. Additionally, their negotiation skills and contractual expertise help ensure that deals proceed smoothly and in accordance with legal requirements.
Benefits of Using Real Estate Agents Where The Real Work Begins
Although technology has empowered buyers to find listings, it's just the tip of the iceberg in the home-buying process. According to Nick Bailey, CEO of Century 21 Real Estate, the real challenges come after finding a property. Negotiations, inspections, and, in some cases, dealing with various aspects like co-op boards, mark the true start of the journey. In this context, tech-savvy buyers bring a better understanding of the market, making the process smoother for both parties.
Their personalized guidance and support can be invaluable, particularly for first-time buyers and sellers. Agents also save you time by handling numerous administrative tasks and arranging property viewings. They often have access to off-market properties, giving you a competitive edge, and their negotiation skills can result in better deals. Furthermore, they provide liability protection, should any issues arise during the transaction.
The Evolving Role of Real Estate Agents
Real estate agents have adapted to the digital age by embracing technology. They use digital tools to streamline processes and offer virtual property tours. In doing so, they provide a hybrid approach that combines the convenience of digital resources with the personal touch of a trusted advisor.
Challenges and Considerations
While real estate agents offer valuable services, it's important to consider the associated costs and potential conflicts of interest. Ensure that you choose an agent with integrity and a good reputation, as the quality of your experience can vary significantly based on your choice.
When You Might Not Need a Real Estate Agent
In some situations, you may decide that you don't need a real estate agent. For example, if you have a strong understanding of the real estate market, are experienced in property transactions, or are comfortable navigating digital resources, you may opt for a self-service approach. However, it's essential to be well-informed and well-prepared.
Conclusion
In conclusion, real estate agents continue to provide valuable services in the digital age. They offer expertise, personal support, and efficiency that can be challenging to replicate on your own. However, the decision to use a real estate agent or not should be based on your individual needs and preferences. Whether you choose to go digital or enlist the help of an agent, always prioritize thorough research and informed decision-making.2023-10-12T07:41:44-07:002023-10-12T09:02:10-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30977Real Estate Investment For Millenials: A Step-By-Step Guide To Financial Freedom
In an era where financial stability and long-term security are top priorities for millennials, real estate investment has emerged as a powerful wealth-building strategy. Whether you're dreaming of owning rental properties, flipping houses for profit, or simply diversifying your investment portfolio, real estate offers numerous opportunities for financial growth. In this comprehensive guide, we will take you through the steps to get started with real estate investment, from setting your financial foundation to successful property management.
Setting Your Financial Foundation
Before diving headfirst into the world of real estate investment, it's crucial to ensure you have a solid financial foundation.
Create a Budget
The first step to financial success is creating a budget. Track your monthly income and expenses to understand where your money is going. Allocate a portion of your income to savings and investments. This disciplined approach will help you accumulate the capital you need for your real estate ventures.
Build an Emergency Fund
Life is unpredictable, and unexpected expenses can derail your financial plans. To avoid tapping into your investment funds in times of crisis, aim to save at least three to six months' worth of living expenses in a high-yield savings account. This emergency fund will provide a safety net during challenging times.
Saving for Your Real Estate Investment
Accumulating capital for your real estate venture is a crucial step towards making your investment dreams a reality.
Cut Unnecessary Expenses
Review your spending habits and identify areas where you can cut back. This might mean eating out less frequently, canceling unused subscriptions, or finding more cost-effective transportation options. Every dollar saved is a step closer to your real estate goals.
Set Clear Goals
Before you start investing in real estate, define your objectives. Are you interested in buying a rental property for passive income, flipping properties for quick profits, or building a portfolio of real estate assets for long-term wealth? Having clear goals will help you make informed decisions.
Invest in Retirement Accounts
Don't forget about your long-term financial security. Contribute to your employer-sponsored 401(k) and consider opening an Individual Retirement Account (IRA). These retirement accounts offer tax advantages and are an excellent way to build wealth over time while simultaneously saving for retirement.
Understanding Real Estate Financing
Real estate purchases often require substantial capital, making financing a crucial aspect of your investment journey.
Mortgage Basics
Before you buy your first property, it's essential to understand mortgage basics. Explore different types of mortgages, such as fixed-rate and adjustable-rate mortgages, and learn how your choice can impact your overall investment strategy. Additionally, grasp the concept of down payments and how they affect your loan terms.
Improve Your Credit Score
A healthy credit score is essential when applying for a mortgage or securing financing for your real estate investment. Pay down existing debts, make payments on time, and dispute any inaccuracies on your credit report. A higher credit score will open doors to better loan terms and lower interest rates.
Explore FHA Loans
As a millennial, you may have limited funds for a down payment. Consider exploring Federal Housing Administration (FHA) loans, which often require lower down payments and have more flexible lending criteria, making them a suitable option for first-time homebuyers.
Choosing the Right Investment Property
Selecting the right property is paramount to your success as a real estate investor.
Location, Location, Location
Location is a critical factor in real estate. Research neighborhoods meticulously and choose areas with strong growth potential, low crime rates, and access to amenities like schools, shopping centers, and public transportation. A good location can significantly impact your property's value and rental potential.
Property Type
Decide on the type of property that aligns with your investment goals. Options include single-family homes, multi-family units, commercial properties, and more. Each property type has its advantages and disadvantages, so make your choice based on your objectives and risk tolerance.
Investment Strategy
Are you interested in becoming a landlord and generating passive rental income, or do you prefer flipping properties for quick returns? Define your investment strategy and stick to it. Each strategy has its unique challenges and rewards, so choose one that suits your financial goals.
Property Management and Maintenance
Effectively managing your real estate investment is essential for long-term success.
Property Management Options
Decide whether you want to self-manage your properties or hire a property management company. Self-management offers more control but requires more time and effort, while professional management can alleviate the day-to-day responsibilities but comes at a cost. Choose the option that aligns with your lifestyle and investment objectives.
Tenant Screening
If you're renting out your property, implement thorough tenant screening processes to find reliable renters. Perform background and credit checks, verify employment and rental history, and check references. A good tenant can make your investment journey much smoother.
Regular Maintenance
Maintaining your property is crucial to preserving its value and attracting quality tenants. Schedule regular inspections and address maintenance issues promptly. By taking care of your investment, you'll not only protect your financial interests but also ensure tenant satisfaction.
Bottom line
Real estate investment offers millennials an excellent opportunity to achieve financial freedom. By setting a strong financial foundation, saving diligently, understanding financing options, and making wise property choices, you can embark on a path to success. Remember that real estate is a long-term investment, so patience and persistence are essential. Start your journey today and work towards securing your financial future through real estate investment. Financial freedom awaits those who take the initiative to invest in their future.2023-10-10T07:45:00-07:002023-10-10T07:34:05-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30960Are You a Homebuyer Worried About Climate Risks?The increasing effects of natural disasters are leading to new obstacles in residential real estate. As a recent article from CoreLogic <a href="https://www.corelogic.com/intelligence/case-studies/climate-risk-modeling-future-for-real-estate-portfolios/" rel="noopener noreferrer" target="_blank">explains</a>:
“As the specter of climate change looms large, the world braces for unprecedented challenges. In the world of real estate, one of those challenges will be the effects of natural catastrophes on property portfolios, homeowners, and communities.”
That may be why, <a href="https://zillow.mediaroom.com/2023-09-05-More-than-80-of-home-shoppers-consider-climate-risks-when-looking-for-a-new-home" rel="noopener noreferrer" target="_blank">according</a> to Zillow, more and more Americans now consider how climate risks and natural disasters can impact their homeownership plans (see below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" /></a>
This study goes on to explain that climate risks affect where many people look for a home. That’s because homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.
If you’re in the same situation and are thinking about what to do next, here’s some important information to consider as you start looking for a home.
Expert Advice for Homebuyers To Reduce Climate Risks
The <a href="https://www.keepingcurrentmatters.com/2023/09/25/beginning-with-pre-approval/" rel="noopener noreferrer" target="_blank">first thing</a> to do is understand how to go about buying a home while thinking about climate risks. With the right help and resources, you can simplify the process.
The Mortgage Reports provides these <a href="https://themortgagereports.com/99491/climate-change-global-warming-home-buying-impact" rel="noopener noreferrer" target="_blank">tips</a> for buying your next home:
Evaluate climate risks: Before buying a home, it’s important to check if it’s in a flood-prone area using the <a href="https://msc.fema.gov/portal/home" rel="noopener noreferrer" target="_blank">FEMA website</a>, review the seller’s property disclosure for any past damage, and get an inspection for issues like cracks and mold to make sure it’s a safe investment.
Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial. You should shop around and talk to multiple insurance agents to compare prices and options before deciding to bid on a home.
Above all else, your most <a href="https://www.keepingcurrentmatters.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">valuable resource</a> during this process is a trusted real estate expert. They’ll always focus on your goals while keeping your concerns top of mind. Even if they don’t have all the answers about how your home can handle natural disasters, they can connect you with the right experts and information.
Bottom Line
If you want to <a href="https://www.keepingcurrentmatters.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buy a home</a>, but you're also thinking about climate risks, you're not alone. Your home is a big investment, and if anything can impact that, you want to know. Connect with a real estate professional so you have someone you can trust to guide you as you find your next home.
CTO: https://www.keepingcurrentmatters.com/2023/10/05/are-you-a-homebuyer-worried-about-climate-risks/2023-10-05T07:04:38-07:002023-10-05T07:20:39-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30910Why Pricing Your Home Correctly Is Crucial When Selling In A Shifting Market In today’s housing market, setting the right price for your home from the beginning is not just a smart move — it's absolutely essential. If your goal is to sell quickly and for top dollar, your home must be priced competitively right from the moment it hits the market.
There’s nothing wrong with listing your home on the higher side of market value, however, overpricing your home so that there is "room to negotiate" or just to "see what happens" can backfire badly. In fact, it may ultimately end up costing you more than if you had priced your home correctly from the start.
Why?
▪️ The more you overprice your home, the fewer buyers will come to see it. Today's buyers are educated and know if a home is overpriced.
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/3rd_CAROUSEL_Page_2.jpg" width="1080" height="1080" />
▪️ Very few buyers in today’s market will even make an offer on an overpriced home — they will wait for the price to drop, sometimes before they even schedule a showing.
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/3rd_CAROUSEL_Page_3.jpg" width="1080" height="1080" />
▪️ Your property attracts the most interest (and the most serious buyers) when first listed — the most showings on a home occur within the first 30 days of the listing hitting the market.
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/3rd_CAROUSEL_Page_4.jpg" width="1080" height="1080" />
▪️ After your house has been on the market for several weeks or even months, buyers will notice the number of days on market and may assume that something is wrong with your home.
Now, here's the thing… pricing a home isn't an exact science, especially given the current landscape of constantly fluctuating and rising interest rates. There are a lot of variables to consider, and it can be tricky to get it just right. This is precisely why teaming up with an experienced agent like myself, who closely monitors the local market daily, is essential.
2023-10-03T07:54:01-07:002023-10-03T08:22:05-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30757Easy Decor Swaps To Make Your Home Feel Like Fall<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/23rd_Option_1_CAROUSEL_PAGE_1.png" width="1708" height="960" />
Something magical happens when your home decor and the seasons align... but if the thought of re-decorating for the new season feels overwhelming, I've got you covered!
Here's a few simple and inexpensive decor swaps that will effortlessly transform your space into a cozy haven this fall.
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/23rd_Option_1_CAROUSEL_PAGE_2.png" width="1890" height="1890" />
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/23rd_Option_1_CAROUSEL_PAGE_3.png" width="1890" height="1890" />
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/23rd_Option_1_CAROUSEL_PAGE_4.png" width="1890" height="1890" />
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/23rd_Option_1_CAROUSEL_PAGE_4_2.png" width="1890" height="1890" />
These simple touches will not only create a welcoming atmosphere but will allow you to fully embrace the magic of the season. Happy decorating!2023-09-26T07:08:29-07:002023-09-26T07:45:59-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30603Don't sabotage your home sale avoid these common selling mistakes
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/19th_CAROUSEL_PAGE_1.png" width="1215" height="1215" />
Selling your home can be time-consuming, overwhelming, and emotional, but with the right agent to help guide you through the process, you can avoid critical mistakes that could cost you time and money (and even, dare I say, enjoy the process!)
Whether you’re a first-time seller or have been through the process before, it's important to understand these common home-selling mistakes to avoid sabotaging your sale.
Ignoring repairs before listing
Most buyers in today's market are looking for a move-in-ready home, not a project. Even minor problems can have a negative impact and cause potential buyers to be concerned about more significant (and expensive) repairs. This can create the perception that the current owners have not properly maintained the property and could indicate the presence of other issues. Neglecting to make repairs to your home before you list not only makes it less appealing to buyers but can also open you up to additional costs that result from the buyer’s inspection.
Not prepping to sell
Preparing your home to sell is crucial — this includes deep cleaning, decluttering, and staging. Further, a professionally staged home highlights its potential and helps buyers envision themselves in the space. Can't afford to hire a professional? There are numerous things you can do on your own, such as removing personal items and clutter, organizing closets and storage areas, rearranging furniture, and focusing on rooms that impress buyers most. When it comes to helping buyers visualize a space, less is more.
Not being flexible
A missed showing is a missed opportunity. One of the more common home-selling mistakes is not letting buyers in when they request a showing. By prepping your home to sell ahead of time, you will be prepared to leave at a moment's notice when someone requests a showing. Just remember, showing your house is just a temporary inconvenience.
Being unrealistic about price
Every seller wants to net the most money they can for their home, but it's important to understand that the most important factor dictating what you should price your home at isn’t what you think it’s worth but what comparable homes in your area have sold for along with current market conditions. Work with your real estate agent to analyze the market and set a competitive price that attracts attention. The worst thing you can do when listing your home is overpricing it. A home that Is properly priced from the start has the greatest chance for success!
At the end of the day, you want the home selling process to be as smooth and painless as possible. As a real estate agent, my goal is to guide you through the process, help you avoid these pitfalls, and sell your home quickly and for the most money the market will bear. Considering selling your home? Send me a message, and let's discuss your goals and next steps!
2023-09-21T07:55:42-07:002023-09-21T08:17:53-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30438How To Leverage Your Home Equity<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/home 2.jpg" width="1000" height="2000" />2023-09-14T08:03:38-07:002023-09-14T08:33:46-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30194Expert Home Price Forecasts Revised Up for 2023Toward the end of last year, there were a number of headlines saying <a href="https://www.keepingcurrentmatters.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">home prices</a> were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.
While there was a slight home price correction after the sky-high price appreciation during the <a href="https://www.keepingcurrentmatters.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, nationally, <a href="https://www.keepingcurrentmatters.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank">home prices</a> didn’t come crashing down. If anything, <a href="https://www.keepingcurrentmatters.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">prices</a> were a lot more resilient than many people expected.
Let’s take a look at some of the expert forecasts from late last year stacked against their most recent <a href="https://www.keepingcurrentmatters.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">forecasts</a> to show that even the experts recognize they were overly pessimistic.
Expert Home Price Forecasts: Then and Now
This visual shows the <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">2023</a> home price <a href="https://www.mba.org/news-and-research/forecasts-and-commentary/mortgage-finance-forecast-archives" rel="noopener noreferrer" target="_blank">forecasts</a> from seven <a href="https://www.fanniemae.com/research-and-insights/forecast/forecast-monthly-archive" rel="noopener noreferrer" target="_blank">organizations</a>. It provides the original 2023 forecasts (released in late <a href="https://ustoday.news/a-20-drop-in-house-prices-7-forecast-models-tend-to-crash-here-the-other-13-models-show-the-housing-market-in-2023/" rel="noopener noreferrer" target="_blank">2022</a>) for what would happen to <a href="https://twitter.com/NewsLambert/status/1671900591113609216" rel="noopener noreferrer" target="_blank">home prices</a> by the end of <a href="https://twitter.com/NewsLambert/status/1671556169712672768" rel="noopener noreferrer" target="_blank">this year</a> and their most recently <a href="about:blank" rel="noopener noreferrer" target="_blank">revised</a> 2023 <a href="https://twitter.com/NewsLambert/status/1691799764466008217" rel="noopener noreferrer" target="_blank">forecasts</a> (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230831/20230905-2023-Year-end-home-price-forecasts.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230831/20230905-2023-Year-end-home-price-forecasts.png" /></a>As the red in the middle column shows, in all instances, their original forecast called for home prices to fall. But, if you look at the right column, you’ll see all experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers.
There are a number of reasons why <a href="https://www.keepingcurrentmatters.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">home prices</a> are so resilient to falling. As Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-reconomy-podcast-why-us-homeowners-have-a-big-advantage-in-a-rising-mortgage-rate-environment" rel="noopener noreferrer" target="_blank">says</a>:
“One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge – your primary household expense doesn’t change when inflation rises – and is a reason why home prices in the U.S. are downside sticky.”
A Look Forward To Get Ahead of the Next Headlines
For home prices, you’re going to continue to see misleading media coverage in the months ahead. That’s because there’s <a href="https://www.keepingcurrentmatters.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> to home price appreciation and they’re going to misunderstand that. Here’s what you need to know to get ahead of the next round of negative headlines.
As activity in the housing market slows at the end of this year (as it typically does each year), home price growth will slow too. But, this doesn’t mean prices are falling – it’s just that they’re not increasing as quickly as they were when the market was in the peak homebuying season.
Basically, deceleration of appreciation is not the same thing as home prices depreciating.
Bottom Line
The headlines have an impact, even if they’re not true. While the media said home prices would fall significantly in their coverage at the end of last year, that didn’t happen. Connect with a real estate agent so you have a trusted resource to help you separate fact from fiction with reliable data.
Cto: https://www.keepingcurrentmatters.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/2023-09-05T09:13:42-07:002023-09-05T09:27:00-07:00Nick Wagenknechttag:sresells.com,2012-09-20:30018Gen Z: The Next Generation Is Making Moves in the Housing MarketGeneration Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to <a href="https://www.keepingcurrentmatters.com/2023/07/04/americans-still-view-homeownership-as-the-american-dream/" rel="noopener noreferrer" target="_blank">homeownership</a>. According to the latest <a href="https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank">Home Buyers and Sellers Generational Trends Report</a> from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes.
If you’re a member of this generation, and you’re interested in pursuing your own <a href="https://www.keepingcurrentmatters.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">dream of homeownership</a>, here’s some information you may find helpful on why and where your peers are buying.
The Reasons Gen Z Want To Become Homeowners
A recent survey by Rocket Mortgage <a href="https://www.rocketmortgage.com/learn/gen-z-home-buying#:~:text=Of%20those%20surveyed%2C%2034%25%20said,eager%20to%20establish%20a%20household." rel="noopener noreferrer" target="_blank">identifies</a> some of the top <a href="https://www.keepingcurrentmatters.com/2023/06/02/reasons-to-own-your-home-infographic/" rel="noopener noreferrer" target="_blank">motivators</a> driving Gen Z buyers to purchase a home:
“Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.”
Another key reason the survey says Gen Z wants to buy is because <a href="https://www.keepingcurrentmatters.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank">homeownership</a> can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.
When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.
So, if you’re ready to start a new chapter in your life or if you’re craving more <a href="https://www.keepingcurrentmatters.com/2023/07/21/real-estate-continues-to-be-the-best-investment-infographic/" rel="noopener noreferrer" target="_blank">stability</a>, know that your peers feel the same way, and those motivators are why they’re turning to <a href="https://www.keepingcurrentmatters.com/2023/07/20/owning-your-home-helps-you-build-wealth/" rel="noopener noreferrer" target="_blank">homeownership</a>.
Gen Z’s Next Stop: Where Are They Making Their Moves?
If those reasons have you feeling ready to buy, here’s some information on <a href="https://www.keepingcurrentmatters.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">where</a> your peers are finding their homes that could help you with <a href="https://www.keepingcurrentmatters.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">your search</a>. According to a recent Lending Tree <a href="https://www.lendingtree.com/home/mortgage/the-most-popular-us-cities-for-gen-z-homebuyers-ranked/" rel="noopener noreferrer" target="_blank">survey</a>, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s <a href="https://www.keepingcurrentmatters.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree, <a href="https://www.nytimes.com/2023/06/15/realestate/gen-z-home-buying.html" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . they want to live in a city, but they also want to be close to nature.”
Locating a home that offers both of those things requires expertise. Working with a trusted <a href="https://www.keepingcurrentmatters.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">real estate professional</a> can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with <a href="https://www.keepingcurrentmatters.com/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/" rel="noopener noreferrer" target="_blank">your goals</a>. They’ll also be able to walk you through how things like <a href="https://www.keepingcurrentmatters.com/2023/07/13/how-remote-work-expands-your-homebuying-horizons/" rel="noopener noreferrer" target="_blank">remote work</a> can help you cast a broader net for <a href="https://www.keepingcurrentmatters.com/2023/07/26/tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">your search</a>.
Bottom Line
If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, it’s important to connect with a trusted real estate agent. Their expertise will guide you to a home that fits both your lifestyle and your budget.2023-08-29T08:27:00-07:002023-08-29T08:47:36-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29917More Jobs And Better Pay Leads to More Buyer Demand There’s been talk about a recession for quite a while now. But the economy has been remarkably resilient. Why? One reason is employment and wages have stayed strong. Let’s look at the latest information on each one and why both are good news if you’re thinking about selling your house.
More Jobs Are Being Created
Instead of facing the job losses typical of any recession, the economy has been growing and adding jobs. <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank">According</a> to the Bureau of Labor Statistics (BLS), 187,000 jobs were created in July, which is up from the 185,000 created in June. That means more people are finding work. In fact, so many jobs are being added that the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">unemployment rate</a> is far lower than the long-term average of 5.7% (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png" /></a>
A low unemployment rate means that most people who want to work are finding jobs. When people have jobs, they have steady incomes – and that can help set them up to consider homeownership.
People Are Making More Money
And data also shows hourly <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank">earnings</a> have been going up pretty steadily over the past few years (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230822/20230824-Hourly-Earnings-Rise-4.4--from-last-year.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230822/20230824-Hourly-Earnings-Rise-4.4--from-last-year.png" /></a>
When wages rise, people have more money that they could save or use toward buying a home. This increase in income helps offset some of the affordability challenges in the housing market today. Affordability depends on three main factors: wages, <a href="https://www.keepingcurrentmatters.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a>, and <a href="https://www.keepingcurrentmatters.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>. With higher home prices and mortgage rates right now, Builder Online <a href="https://www.builderonline.com/data-analysis/employment-growth-cant-save-some-housing-markets-in-the-near-term_o" rel="noopener noreferrer" target="_blank">summarizes</a> how growing wages can help:
“The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”
If you’re thinking about <a href="https://www.keepingcurrentmatters.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">selling</a> your house, a strong job market, growing wages, and the resulting buyer demand is fantastic news. It means there’s a larger pool of potential buyers out there who are in a position to pursue their dreams of homeownership.
Bottom Line
With more jobs and rising wages creating eager <a href="https://www.keepingcurrentmatters.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">buyers</a>, there’s a lot going in your favor. Reach out to a local real estate agent so you have someone who can guide you through the process of selling your house, from setting the right price to getting your home ready to show.2023-08-24T06:44:35-07:002023-08-24T07:01:11-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29864DIY Home Projects That Add The Most ValueUpdating your home doesn’t have to be expensive or complicated, and it doesn't always require hiring contractors (yes, I said it). Don't feel intimidated by the thought of getting hands-on and learning some new skills.
Even the simplest home improvements have the ability to make us happier in the places we call home. If you're looking for easy ways to freshen up your space and add value to your home, I've got you covered.
I've put together a list of DIY home projects that are simple enough for anyone to accomplish, and that will add the most value when it's time to sell.
Refresh your kitchen or bathrooms
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/blog_photos.png" width="657" height="350" />
A minor kitchen and bathroom remodel can increase your home's value significantly without breaking the bank. In the kitchen: paint the cabinets, add new hardware, install a backsplash, install stainless steel appliances, and add new light fixtures and under-cabinet lighting. In the bathroom: paint the cabinets, swap out the mirrors and light fixtures, replace the vanity hardware, and recaulk the tub or shower.
Refinish or install hardwood floors
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Hardwood floors have long been the ideal choice for homeowners because they are timeless, durable, and easy to clean. There are plenty of products that can easily be installed without a contractor, but make sure it is done right, or you can end up deterring future buyers.
Upgrade your landscaping
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Flowers and other plants are a great way to increase your home's curb appeal. To get the most for your money, choose perennial plants, which come back year after year. Not sure where to start? Local garden centers often offer free design services, or ask the neighbors what works for them.
Paint refresh
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Adding a fresh new paint color can completely transform your home without being expensive or difficult to do. Freshly painted walls are clean, crisp, and bright, and can dramatically change the entire look of a room. Don’t forget to add a new coat to the trim and the ceilings for an all-over clean look!
Investing time and effort into DIY home projects not only enhances the aesthetic appeal of your living space but also boosts its overall value. By taking on these projects, you're not just improving your home, but you're also investing in its future. The sense of accomplishment and the tangible increase in value make every DIY endeavor worthwhile. Remember, whether you're adding a fresh coat of paint, upgrading fixtures, or enhancing your curb appeal, each project contributes to creating a more comfortable and valuable home. So roll up your sleeves, pick up those tools, and watch as your home transforms into a masterpiece that's worth more than ever before.
2023-08-22T07:27:07-07:002023-08-23T07:50:13-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29706Realtors Over RobotsOnline property value estimates such as the infamous "Zestimates", are more often than not, incorrect.
<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/z.jpg" width="525" height="350" />
Here's why...
The algorithm doesn't take Into account your home's condition or improvements that have been made.
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On top of that...
The real estate market is constantly changing and evolving, and algorithms might not capture the latest changes in the local market.
Did you know?
Online estimates can be off by anywhere from 10-50%... That's a very costly margin of error.
One of the most important factors when selling your home is pricing it correctly from the day it hits the market. Too high? Buyers won’t bite. Too low? You'll leave money on the table.
Bottom line...
The only way to know for sure what your home is really worth is by talking to a local agent who knows your neighborhood and can pull recent comps.
2023-08-16T07:42:54-07:002023-08-16T08:21:03-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29570Navigating the Local Real Estate Market: Finding Clarity Amidst the ConfusionWhat you really need is CLARITY about the local real estate market...
The truth is, there's no one-size-fits-all answer to the best time to buy or sell. It's when YOU are ready. Everyone's unique circumstances, financial readiness, and personal goals dictate the ideal timing to move. Rather than succumbing to market hype, try and focus on understanding your own readiness and making decisions based on a clear vision of what YOU want to achieve.
What's holding you back from buying or selling? What is making you more confused than clear about your next steps? Here are my pieces of advice to help provide clarity about our local market or answer ANY questions that you may have.
Are you feeling
Real Estate Overwhelm?
Do you find yourself asking these questions?
How much can I afford with the higher interest rates?
Should I buy a house now or put my home search on hold?
Should I sell this year or wait to see what happens in the market next year?
Is the housing market going to crash?
There are so many national news sources
with conflicting information...
National news headlines are not always accurate...
Real estate is hyper-local, and national trends don't necessarily reflect what's happening in our specific area and community.
and to top it off...
The media tends to do a better job scaring people with clickbait headlines than actually providing useful information about what is actually happening in the local real estate market.
With that being said, I want to remind you that I am here as your resource.
If you're feeling
a little (or a lot)
uncertain...
Or if you have ANY questions about your unique situation and what may be the best option for you and your family, reach out to a Real Estate Agent. They always love to help you navigate our ever-changing market and put together a plan to help you buy or sell.
Bottom line:
Don't let the headlines
make decisions for you.
2023-08-08T08:22:57-07:002023-08-08T08:50:24-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29451Embrace the Barbie Trend: Elevating Real Estate with Smart Technology<br /><img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/pexels-koolshooters-7143286_1.jpg" width="640" height="960" /><br />
The ever-evolving world of real estate constantly adapts to changing trends and consumer demands. One captivating trend that has captured the hearts of many is the Barbie-inspired lifestyle. With its timeless charm and glamorous appeal, the Barbie trend serves as a delightful inspiration for real estate professionals and homeowners alike. In this expert blog post, we will delve into how businesses and homeowners can leverage the latest smart home technologies, draw inspiration from the latest Barbie movie trend, to create enchanting and sophisticated living spaces that will captivate the imaginations of all who step inside.
The Allure of Barbie's Latest Movie Trend:
The resurgence of the Barbie movie trend in recent years, featuring A-list actors like Robbie Margot and Ryan Gosling, has reignited cherished memories for adults and captivated the imaginations of younger audiences. These films often revolve around themes of empowerment, individuality, and embracing one's true self, inspiring homeowners to incorporate similar themes into their real estate projects.
The Charm of Barbie-Inspired Smart Homes:
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The advent of smart home technologies opens up endless possibilities for creating Barbie-inspired dream homes. Imagine entering a home where lighting and ambiance can be customized to mirror the latest Barbie movie scenes, or where voice-activated assistants respond to personalized commands, embodying Barbie's adventurous spirit.
Smart Lighting and Imaginative Ambiance:
Barbie's movies are known for their vivid and whimsical ambiance. By integrating smart lighting systems with pink hues and customizable color schemes, homeowners can effortlessly create captivating and enchanting atmospheres. Picture hosting a themed party that emulates the charm of a Barbie ball, complete with dazzling lighting effects that adapt to the mood and energy of the event.
Voice-Activated Elegance:
No true Barbie-inspired smart home would be complete without voice-activated assistants akin to the AI-powered characters featured in the latest Barbie movies. These voice assistants offer not only convenience but also enhance the imaginative storytelling experience for both children and adults.
Tech-Savvy Security and Peace of Mind:
Incorporating smart security systems into a Barbie-inspired home is essential. Homeowners can opt for sleek, stylish security cameras and advanced smart locks, ensuring their property remains secure while maintaining the elegant aesthetics of a Barbie dream home.
A-List Collaboration: Robbie Margot and Ryan Gosling as Home Ambassadors:
Taking the Barbie-inspired trend to the next level. Their association with the Barbie movie trend and broad audience appeal can add glamour and prestige to real estate projects, attracting potential buyers and creating significant buzz.
In conclusion, the Barbie trend presents a realm of creative possibilities for real estate businesses and homeowners seeking to infuse their properties with magic and glamour. By embracing the latest smart home technologies, drawing inspiration from the latest Barbie movie trend,businesses can craft unforgettable living spaces that resonate with nostalgia and contemporary aspirations alike. Whether through smart lighting, voice-activated assistants, or stylish security systems, capturing the essence of Barbie's timeless appeal elevates real estate to new heights of charm and sophistication.2023-08-01T09:46:38-07:002023-08-10T09:32:44-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29267Three Risks When Buying Without A Real Estate Agent<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/54.jpg" width="641" height="350" />
Although it might seem like a good idea to buy a home without an agent, it's important to recognize the potential risks that you could be exposed to by choosing not to have representation.
Buying a property without the assistance of a real estate agent, also known as a "For Sale By Owner" (FSBO) transaction, can have both advantages and disadvantages
Curious about the specific risks? Let's explore three of them.
<br /><br />
Overpaying
It's essential to have an agent by your side to analyze a home's market value and negotiate on your behalf.
Pro tip: a "Zestimate" is not an accurate estimate of a home's value. Your agent will educate you on the local market and analyze similar homes that have recently sold (ie "comps), to help you decide on an offer price.
Legal issues
Real estate law is complex and constantly changing. Legal mistakes and missteps in your paperwork can lead to severe, long-term, and expensive headaches.
Knowing how to read a contract before you sign it is crucial. Your agent will review all of the clauses in the contract that protect you, and look out for your best interests.
Inspection issues
An inspection report can be hard to decipher for the average person.
A good agent will not only help you choose the right inspector, as well as advise you on what specific inspections you should elect, they will also help you read the inspection report and negotiate repairs or credits with the seller.
Conclusion:
While buying without an agent can save you on commission fees, it's essential to weigh these risks against the potential benefits.
A great agent will educate you and guide you throughout the process from start to finish, make sure your best interests are represented every step of the way, and ensure that the home-buying experience is smooth, stress-free, and enjoyable.
<br /><br />2023-07-20T07:03:50-07:002023-08-10T09:34:09-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29205Does Putting In A Pool Add Value To Your Home?<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/blog_photos_1.jpg" width="635" height="350" />
The idea of having your very own backyard oasis may be incredibly tempting. After all, who doesn't dream of lounging by the water on a warm summer's day? But the burning question remains: does installing a pool actually increase the value of your home?
In this blog post, we'll explore whether installing a pool adds value to your home and provide you with a comprehensive perspective on this widely debated topic.
While the appeal of a pool is undeniable, the answer to this question is not as straightforward as you might think. Let's dive in and explore a few factors that come into play when evaluating the impact of a pool on your home's value:
THE POSITIVE EFFECTS:
1.1 INCREASED CURB APPEAL: A well-designed pool can significantly enhance the aesthetics of your home's exterior, creating a visually appealing focal point. Aesthetically pleasing features like a beautifully landscaped pool area with attractive lighting and surrounding amenities can boost the overall curb appeal, attracting potential buyers.
1.2 EXTENDED LIVING SPACE: Pools offer an additional outdoor living area where homeowners can entertain guests, relax, and spend quality time with family and friends. This added living space can be an attractive feature for buyers, especially in regions with warmer climates.
1.3 DESIRABILITY: In areas where pools are highly sought after, having one can make your property more desirable to potential buyers. Families with children or individuals who enjoy outdoor activities may consider a pool a valuable asset, leading them to prioritize your home over others without a pool.
THE NEGATIVE CONSIDERATIONS:
2.1 MAINTENANCE COSTS: Pools require regular maintenance and upkeep, including cleaning, chemical balancing, and equipment maintenance. These ongoing costs can be a deterrent for some buyers who may not want to take on the additional expenses and responsibilities associated with pool ownership.
2.2 LIMITED APPEAL: While pools can be desirable for many, they may not appeal to everyone. Some buyers may have safety concerns, maintenance aversion, or simply prefer utilizing their outdoor space differently. This limited appeal can potentially narrow your pool of potential buyers.
2.3 SPACE CONSTRAINTS: Depending on the size of your property, installing a pool may consume a significant portion of your outdoor space. If your backyard is already small or lacks ample green space, adding a pool might not be the best use of the available area. This limitation can hinder the appeal of your property to certain buyers.
REGIONAL FACTORS:
The impact of a pool on home value can vary greatly depending on your location. In warmer climates or regions with a strong outdoor lifestyle, a pool might be more highly valued. However, in colder climates or areas with limited pool usage, the added value may be marginal or even negligible. Considering the regional factors and market trends in your area is essential when evaluating the impact of a pool on your home's value.
Conclusion:
So, does adding a pool increase your home's value? It depends! Ultimately, adding a pool should be about enhancing your enjoyment of your home and lifestyle, not just chasing a potential increase in value.
Regardless, it's worth having a conversation with a local real estate agent who can offer valuable insights based on the specific dynamics of the local market. Ultimately, the value of a pool lies not only in its potential impact on your home's value but also in the enjoyment and relaxation it brings to you and your family.
2023-07-18T06:53:32-07:002023-07-18T07:15:08-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29137Anytime Is Always The Right Time When Buying Or Selling A Home<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/13th_CAROUSEL_PAGE_1.jpg" width="525" height="350" />
When it comes to the question, "when is the right time to buy?" the answer is simple: the best time is when you are ready.
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So stop stressing about timing, or listening to the headlines, and remember that there's never a "bad" time to buy or sell when you know it's right for you.2023-07-13T08:19:47-07:002023-07-13T09:00:17-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29089Momentum Is Building for New Home Construction<a href="https://www.keepingcurrentmatters.com/category/buyers/" rel="tag">For Buyers</a>, <a href="https://www.keepingcurrentmatters.com/category/housing-market-updates/" rel="tag">Housing Market Updates</a>, <a href="https://www.keepingcurrentmatters.com/category/new-construction/" rel="tag">New Construction</a>
<a href="https://www.keepingcurrentmatters.com/2023/07/11/momentum-is-building-for-new-home-construction/" rel="bookmark" title="Momentum Is Building for New Home Construction">Momentum Is Building for New Home Construction</a>
<a href="https://files.keepingcurrentmatters.com/content/images/20230707/20230707-momentum-is-building-for-new-home-construction.jpg" title="If you’re in the process of looking for a home today, you know the supply of homes for sale is low because you’re feeling the impact of having a limited pool of options." class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/images/20230707/20230707-momentum-is-building-for-new-home-construction.jpg" alt="Momentum Is Building for New Home Construction" /></a>
If you’re in the process of looking for a home today, you know the <a href="https://www.keepingcurrentmatters.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">supply of homes</a> for sale is low because you’re feeling the impact of having a limited pool of options. And, if your biggest hurdle right now is that you’re having trouble finding something you like, don’t forget that a newly built home is a great option.
As a recent article from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/contract-signings-slow-but-buyer-demand-is-still-high" rel="noopener noreferrer" target="_blank">says</a>:
“Home buyers continue to be met with limited housing options during what’s typically the real estate market’s busiest season. . . . The current supply of existing homes is about half the level it was in 2019 . . . Meanwhile, the market for new construction is a bright spot.”
Here’s a look at a key metric that shows just how much new home construction is ramping up nationwide. It’s called new residential completions. Basically, completions are newly built homes that are finished and ready to move into.
The graph below uses <a href="https://www.census.gov/construction/nrc/current/index.html" rel="noopener noreferrer" target="_blank">data</a> from the Census to show the trend of new-home completions over time, including the long-term average for the number of finished housing units (shown in black on the graph):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230707/20230711-new-residential-completions-increase.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230707/20230711-new-residential-completions-increase.png" /></a>
As you can see on the left (shown in orange), leading up to the housing crash, builders exceeded that average. The result was an oversupply of homes on the market, so <a href="https://www.keepingcurrentmatters.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">home values</a> declined. That was one of the factors that led to the housing crash back in 2008.
Since then, the level of new home construction has fallen off, and builders haven’t built enough homes to meet the historical average (shown in red). That underbuilding left the housing market with a multi-year inventory deficit. And, that deficit is part of what makes inventory so low right now.
But, here’s the good news. The green on the right shows that according to the <a href="https://www.census.gov/construction/nrc/current/index.html" rel="noopener noreferrer" target="_blank">latest report</a> from the Census, builders are matching the long-term average right now. And that means they’re bringing more newly built homes to the market than they have in recent memory.
And residential starts and permits are also gaining momentum. Starts are homes where the construction has officially kicked off. Permits are homes where builders are planning to break ground soon. Since both are up, it’s a sign there are even more newly built homes coming soon.
What This Means for You
More newly built homes in various stages of the construction process means your pool of options just got bigger. If you’re looking to move right now and timing is important to you, reach out to a local<a href="https://www.keepingcurrentmatters.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank"> real estate professional</a> to explore the homes that were recently completed in your area. If construction is done on those homes, you should be able to move in quickly.
But, if you can wait a bit and the idea of customizing a home from the ground up appeals to you, ask that same agent about the homes in your area that are in the process of being built. If you buy a home that’s still in the works, you can help pick the features and finishings along the way. And when none of the homes you’ve looked at so far are to your liking, being able to tailor one to your taste may be your best option.
Either way, a trusted real estate agent is a crucial part of the process. They’ll know exactly what’s available in your area and can base their recommendations on your unique needs, desired neighborhoods, and more.
Bottom Line
So, if you're having trouble finding a home you like while inventory is so low, it may be time to consider looking into new-home construction. If you'd like to start that conversation, reach out to a trusted local real estate professional who’s an expert on what’s available in your area.
CTO: <a href="https://www.keepingcurrentmatters.com/2023/07/11/momentum-is-building-for-new-home-construction/">https://www.keepingcurrentmatters.com/2023/07/11/momentum-is-building-for-new-home-construction/</a>
2023-07-11T09:24:10-07:002023-07-11T09:26:48-07:00Nick Wagenknechttag:sresells.com,2012-09-20:29009High Expectations On Your First Home? <img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/blog_photos_18.jpg" width="525" height="350" />
REAL TALK.
Embarking on the journey of purchasing your first home is an exciting experience. As you envision your dream space, it's natural to dream big, and let's face it, HGTV hasn't really set the best expectations. However, it's important to keep in mind that your first home likely won't be your forever home.
Try not to set your expectations too high, and focus on finding a home that meets your CURRENT needs and budget. By doing so, you'll be able to build equity and work towards your long-term goals.
Did you know that 47% of homeowners live in their homes between 6-10 years on average, with first-time homebuyers living in their starter homes for just 5-7 years?
Unfortunately, you may not get that gorgeous white kitchen with marble countertops, or wide plank hardwood floors, but you can create a home that is YOURS, and update it over time. Focus on the things you can't change instead of the cosmetics of a home, such as location, size, yard space, and layout.
If you've been postponing your homebuying journey in hopes of affording your dream home, why not consider starting with a starter home? By purchasing a more modest home initially, you can begin building your own equity instead of continuing to pay someone else's mortgage. It's a stepping stone toward your ultimate homeownership goals!
In this article, we will explore the advantages and disadvantages of setting high standards for your first home.
The Pros of Having High Expectations
A Dream Home Come True: By setting high expectations, you increase the chances of finding a home that truly meets your desires and needs. Your first home is an opportunity to create the living space you've always envisioned, from the layout to the design and amenities.
Long-Term Satisfaction: Purchasing a home is a long-term commitment. By aiming high, you ensure that you won't outgrow your home too quickly. Having high expectations can help you find a home that accommodates your current lifestyle and provides room for growth in the future.
Resale Value: A home that meets your high standards is likely to hold its value better over time. In case you decide to sell it later, you will have a better chance of recouping your investment or even making a profit.
Enhanced Comfort and Happiness: A home that aligns with your expectations will bring you comfort and happiness. It can become a sanctuary where you can relax and enjoy your personal space. Having a home that meets your desires can positively impact your overall well-being.
The Cons of Having High Expectations
Budget Constraints: High expectations often come with a higher price tag. Setting unrealistic standards for your first home may lead to financial strain or prevent you from getting on the property ladder altogether. It's essential to balance your desires with your budget to avoid overextending yourself.
Limited Options: Having high expectations can limit the number of homes available within your preferred budget and location. You might need to compromise on certain features or consider alternative neighborhoods to find a suitable home.
Time Constraints: The process of finding a home that meets your high standards may take longer than expected. This extended search period can delay your plans and put additional stress on your finances and personal life.
Unrealistic Perfection: It's important to acknowledge that no home is entirely perfect. Setting extremely high expectations may lead to disappointment and unrealistic demands that no property can meet. Being flexible and open-minded can help you find a home that meets most of your requirements.
Finding a Balance
While it's good to have high expectations for your first home, it's crucial to find a balance between your desires and practicality. Consider the following tips to help you strike that balance:
Prioritize: Identify the features and amenities that are non-negotiable for you. This will help you focus your search and make informed decisions.
Set a Realistic Budget: Determine your budget before you start looking for a home. Be sure to consider your income, savings, and potential future expenses. This will help you narrow down your options and prevent financial strain.
Be Open-Minded: Keep an open mind during the home search process. Sometimes, a property may not meet all your expectations initially, but with some creativity and modifications, it can become your dream home.
Consult Professionals: Seek advice from real estate agents, mortgage brokers, or other professionals in the field. They can provide valuable insights and help manage your expectations based on your budget and local market conditions.
Conclusion
Having high expectations for your first home can be both a blessing and a challenge. While aiming high allows you to find a home that meets your desiresand brings long-term satisfaction, it's essential to be mindful of the potential drawbacks. Budget constraints, limited options, and the risk of unrealistic perfection are all factors to consider.
Finding a balance between your expectations and practicality is key. Prioritize your non-negotiable features, set a realistic budget, and keep an open mind during the home search process. Consulting with professionals can also provide valuable guidance.
Remember that your first home is just the beginning of your homeownership journey. It's an opportunity to create a comfortable and happy living space, but it doesn't have to be perfect. With a balanced approach, you can find a home that meets most of your expectations while ensuring long-term financial stability and personal satisfaction.2023-07-06T06:55:02-07:002023-07-06T07:25:14-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28911Reasons A Sale Falls Through And How To Avoid Them - INFOGRAPHIC<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/reasons_a_sale_falls_through_and_how_to_avoid_them.jpg" width="800" height="2000" />2023-06-29T09:26:05-07:002023-06-29T09:33:39-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28755The Millennial Impact: Shaping Today's Housing MarketThe impact of millennials on various sectors of the economy cannot be understated, and the housing market is no exception. Born between 1981 and 1996, millennials have now reached the age where they are becoming significant players in the real estate market. With their unique preferences and changing lifestyle choices, this generation is reshaping the housing market in ways that are both exciting and challenging. In this blog post, we will explore how millennials are influencing today's housing market and the key factors that real estate professionals need to consider.
Urban Revitalization and the Desire for Walkable Communities: Millennials tend to value urban living and vibrant, walkable communities. They seek neighborhoods with easy access to amenities like shops, restaurants, entertainment venues, and public transportation. This preference has led to the revitalization of urban areas, driving up demand and prices in city centers. Developers and investors are responding by focusing on creating mixed-use developments that combine residential, retail, and office spaces to cater to this growing demand.
Embracing Technology: Millennials are the first digital-native generation, and technology plays a crucial role in their lives. This tech-savvy cohort expects seamless digital experiences throughout their home-buying journey. Real estate professionals must adapt by leveraging digital marketing strategies, virtual home tours, online transaction platforms, and mobile-friendly websites. Additionally, smart home technology is gaining popularity among millennials, as they value energy efficiency, convenience, and connectivity in their homes.
Flexibility and Renting: Compared to previous generations, millennials tend to prioritize flexibility and mobility over long-term commitments. Many millennials prefer renting over homeownership due to factors such as financial constraints, a desire for career flexibility, and aversion to the responsibilities of homeownership. The demand for rental properties has surged, influencing the rental market dynamics. Investors are capitalizing on this trend by developing more rental properties and co-living spaces to cater to millennials' preferences.
Sustainability and Energy Efficiency: Millennials are environmentally conscious and value sustainable living. They actively seek energy-efficient homes with eco-friendly features like solar panels, energy-efficient appliances, and smart thermostats. Builders and developers are incorporating green building practices and sustainable features into new construction projects to appeal to this eco-conscious generation. Homeowners who invest in energy-efficient upgrades can attract millennial buyers and potentially benefit from cost savings on utility bills.
Affordability and Financial Challenges: Despite their impact on the housing market, many millennials face significant financial challenges, including student loan debt, rising living costs, and a highly competitive job market. These factors have made homeownership a more distant goal for many in this generation. As a result, there is a growing demand for affordable housing options, such as starter homes, shared equity programs, and innovative financing solutions. Addressing affordability concerns will be crucial for the housing market to accommodate millennial buyers.
Conclusion: Millennials are transforming the housing market with their unique preferences and priorities. Their focus on urban living, technology integration, flexibility, sustainability, and affordability is reshaping the way real estate professionals operate. To succeed in this evolving landscape, industry stakeholders must understand and adapt to millennials' needs, leveraging technology, creating sustainable homes, and providing flexible housing options. As millennials continue to play a significant role in the housing market, their impact will undoubtedly shape the future of real estate for years to come.2023-06-22T07:45:20-07:002023-06-22T08:16:59-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28696Why the Median Home Price Is Meaningless in Today’s Market
<a href="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-why-the-median-price-is-meaningless-in-todays-market.jpg" title="The National Association of Realtors (NAR) will release its latest Existing Home Sales (EHS) report later this week." class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-why-the-median-price-is-meaningless-in-todays-market.jpg" alt="Why the Median Home Price Is Meaningless in Today’s Market" /></a><a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.keepingcurrentmatters.com%2F2023%2F06%2F20%2Fwhy-the-median-home-price-is-meaningless-in-todays-market%2F&t=" title="Share on Facebook" target="_blank" rel="nofollow" class="nolightbox">The National Association of Realtors (NAR) will release its latest Existing Home Sales (EHS) report later this week. This monthly report provides information on the sales volume and price trend for previously owned homes. In the upcoming release, it’ll likely say </a><a href="https://www.keepingcurrentmatters.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">home prices</a> are down. This may feel a bit confusing, especially if you’ve been following along and seeing the blogs saying that home prices have bottomed out and <a href="https://www.keepingcurrentmatters.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank">turned a corner</a>.
So, why will this likely say <a href="https://www.keepingcurrentmatters.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank">home prices</a> are falling when so many other price reports say they’re going back up? It all depends on the methodology of each report. NAR reports on the median sales price, while some other sources use repeat sales prices. Here’s how those approaches differ.
The Center for Real Estate Studies at Wichita State University <a href="https://realestate.wichita.edu/question/hpi-vs-median-price/#:~:text=The%20median%20sale%20price%20measures,and%20half%20sold%20for%20less" rel="noopener noreferrer" target="_blank">explains</a> median prices like this:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
Investopedia helps define what a repeat sales approach <a href="https://www.investopedia.com/terms/r/repeatsales-method.asp" rel="noopener noreferrer" target="_blank">means</a>:
“Repeat-sales methods calculate changes in home prices based on sales of the same property, thereby avoiding the problem of trying to account for price differences in homes with varying characteristics.”
The Challenge with the Median Sales Price Today
As the quotes above say, the approaches can tell different stories. That’s why median price data (like EHS) may say prices are down, even though the vast majority of the repeat sales reports show prices are <a href="https://www.keepingcurrentmatters.com/2023/05/12/the-worst-home-price-declines-are-behind-us-infographic/" rel="noopener noreferrer" target="_blank">appreciating again</a>.
Bill McBride, Author of the Calculated Risk blog, <a href="https://calculatedrisk.substack.com/p/case-shiller-national-house-price-747" rel="noopener noreferrer" target="_blank">sums</a> the difference up like this:
“Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices.”
To drive this point home, here’s a simple explanation of median value (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median value (the middle one) is 10 cents. If you have two nickels and one dime, the median value is now five cents.
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230616/20230620-how-median-price-works.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230616/20230620-how-median-price-works.png" /></a>
In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change.
That’s why using the median home price as a gauge of what’s happening with home values isn’t worthwhile right now. Most buyers look at home prices as a starting point to determine if they match their budgets. But, most people buy homes based on the monthly mortgage payment they can afford, not just the price of the house. When <a href="https://www.keepingcurrentmatters.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher, you may have to buy a less expensive home to keep your monthly housing expense affordable. A greater number of ‘less-expensive’ houses are selling right now for this exact reason, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
When you see the stories in the media that prices are falling later this week, remember the coins. Just because the median price changes, it doesn’t mean home prices are falling. What it means is the mix of homes being sold is being impacted by <a href="https://www.keepingcurrentmatters.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" target="_blank">affordability</a> and current <a href="https://www.keepingcurrentmatters.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
Bottom Line
For a more in-depth understanding of home price trends and reports, reach out to a local real estate professional.
CTO: <a href="https://www.keepingcurrentmatters.com/2023/06/20/why-the-median-home-price-is-meaningless-in-todays-market/">https://www.keepingcurrentmatters.com/2023/06/20/why-the-median-home-price-is-meaningless-in-todays-market/</a>
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2023-06-20T06:24:14-07:002023-06-20T06:44:59-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28628What Does Covering An Appraisal Gap Mean?Over the past few years, there has been a lot of buzz around the term "appraisal gap coverage" due to the rise in home values and the competitive, multiple-offer environment. But what does it really mean?
When you purchase a home with a mortgage, the lender typically requires an appraisal to validate the purchase price and "protect" themselves to ensure that they are only loaning you what they are told the home is "worth" based on comparable homes that have sold. This is also to protect you so that you are not underwater on your home value before you even settle.
However, in a competitive market when home prices surge, the appraised value may fall short of the agreed-upon price, creating a gap that needs to be addressed. Therefore, offers are being made with stronger, more creative terms, such as providing assurance that any difference between the contract price and the appraised value (or up to a certain amount of the difference), will be made up in additional cash at settlement. Essentially, in order to get competitive against multiple offers, buyers are offering to cover the difference between the appraised value, and the contract price (ie "the gap"), so that the seller still gets the agreed-upon price.
Covering an appraisal gap refers to the situation where the appraised value of a property is lower than the agreed-upon purchase price in a real estate transaction. When a buyer and seller agree on a price for a property, the buyer typically seeks a mortgage loan from a lender to finance the purchase. As part of the mortgage process, the lender will order an appraisal to determine the property's market value.
If the appraised value comes in lower than the purchase price, it creates an "appraisal gap." For example, let's say the agreed-upon purchase price is $300,000, but the appraised value is only $280,000. This means there is a $20,000 appraisal gap.
Covering the appraisal gap usually falls on the buyer, as it affects their ability to secure financing for the full purchase price. In some cases, buyers may have to contribute additional funds out of pocket to make up the difference between the appraised value and the purchase price. This is often referred to as making an "appraisal gap payment."
Alternatively, the buyer may negotiate with the seller to lower the purchase price to match the appraised value, thereby eliminating the appraisal gap. This can be done through renegotiating the terms of the contract or asking the seller to contribute towards closing costs or repairs to bridge the gap.
In certain competitive real estate markets, where multiple buyers are vying for properties, buyers may choose to cover the appraisal gap entirely, essentially paying the difference between the appraised value and the purchase price without renegotiating with the seller. This can help strengthen their offer and increase the chances of the seller accepting it.
It's important to note that covering an appraisal gap can have financial implications for the buyer, as they may need to bring additional funds to the closing table. It's advisable for buyers to carefully evaluate their financial situation and consult with their real estate agent and lender before deciding on how to handle an appraisal gap.
<br /><br />
If you have some extra cash saved up, this may be a great option to consider if you find yourself in a competitive situation. It's important, however, to understand the risk involved with covering an appraisal gap, along with your options if the appraisal does happen to come in lower (restructuring your loan amount, getting a gift, etc).
It's important that you speak with your lender before assuming you can actually make up the difference if the appraisal comes in low — you don't want to drain your entire savings account or rainy day fund in doing so.2023-06-15T06:41:46-07:002023-06-15T07:10:34-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28582How To Vacay Proof Your HomeAs you gear up for a much-needed vacation, it's essential to take steps to ensure that your home remains safe and secure in your absence. Vacay-proofing your home is not only about safeguarding your belongings but also about giving you peace of mind so that you can truly relax and enjoy your time away. In this blog post, we'll share some practical tips to help you prepare your home and make it less vulnerable to potential risks. Follow these guidelines, and you'll return from your vacation with a refreshed spirit, knowing that your home is safe and sound.
Inform a Trusted Neighbor: Before you leave, let a trusted neighbor or friend know about your vacation plans. Share your contact details and inform them of the duration of your absence. This way, they can keep an eye on your property and notify you or the authorities if anything suspicious occurs. It's also a good idea to provide them with spare keys, in case of emergencies.
Secure All Entry Points: Thoroughly check all windows, doors, and other entry points to ensure they are properly locked and secure. Consider installing deadbolt locks, window bars, or security systems for added protection. Also, make sure to close and lock your garage doors before leaving. Taking these measures will significantly reduce the chances of break-ins or unauthorized entry.
Install Timers for Lights: A dark, unlit house is an obvious sign that nobody is home. Invest in timers for your indoor and outdoor lights to give the illusion of activity. Program them to turn on and off at different times throughout the day to simulate your usual routines. This simple trick can deter potential intruders and make it appear as if someone is present.
Pause Deliveries and Mail: A pile of newspapers on the doorstep or an overflowing mailbox is a clear indication that nobody is home. Temporarily suspend mail and newspaper deliveries or ask a neighbor to collect them for you. Alternatively, you can contact your local post office and request them to hold your mail until your return.
Set Up Security Systems: Consider installing a home security system or enhancing your existing one. Modern security systems provide various features, including motion sensors, security cameras, and mobile app integration. Opt for a system that suits your needs and budget, as it can be an effective deterrent against burglaries and provide remote monitoring capabilities.
Unplug and Switch Off: To prevent energy wastage and avoid potential electrical hazards, unplug non-essential appliances and electronics before you leave. This step not only saves energy but also protects your home from electrical fires or power surges. Additionally, switch off the water supply to prevent leaks or pipe bursts during your absence.
Take Care of the Outdoors: Don't forget to take care of the exterior of your home. Trim any overgrown bushes or hedges that could provide hiding spots for intruders. Arrange for someone to mow your lawn or water your plants if you're going away for an extended period. A well-maintained exterior gives the impression that your home is occupied and cared for.
Be Cautious on Social Media: While it's tempting to share your vacation plans on social media, exercise caution. Avoid posting about your trip until you've returned. Broadcasting your absence can alert potential criminals that your home is unoccupied, making it an easy target. Share your memories and experiences after you're back to ensure maximum security.
Conclusion: By following these practical tips, you can vacay-proof your home and enjoy your vacation worry-free. Remember, taking these precautions not only protects your property but also provides peace of mind, allowing you to fully unwind and recharge. With a little planning and preparation, you can ensure that your return home is as pleasant as your time away. Bon voyage!2023-06-13T06:53:54-07:002023-06-13T06:57:59-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28472This Real Estate Market Is the Strongest of Our LifetimeWhen you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime – if not the strongest housing market of our lifetime. Here are two fundamentals that prove this point.
1. The Current Mortgage Rate on Existing Mortgages
First, let’s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency (<a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" rel="noopener noreferrer" target="_blank">FHFA</a>), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That’s significant. And, to take that one step further, over 50% of mortgages have a rate below 4% (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-current-rate-on-existing-mortgages.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-current-rate-on-existing-mortgages.png" /></a>
Now, there’s a lot of talk in the media about a potential <a href="https://www.keepingcurrentmatters.com/2023/04/27/why-todays-foreclosure-numbers-are-nothing-like-2008/" rel="noopener noreferrer" target="_blank">foreclosure</a> crisis or a rise of homeowners defaulting on their loans, but consider this. Homeowners with such good mortgage rates are going to work as hard as they can to keep that mortgage and stay in their homes. That’s because they can’t go out and buy another house, or even rent an apartment, and pay what they do today. Their current mortgage payment is more affordable. Even if they <a href="https://www.keepingcurrentmatters.com/2023/05/04/how-homeowners-win-when-they-downsize/" rel="noopener noreferrer" target="_blank">downsize</a>, with today’s higher mortgage rates, it could cost more.
Here’s why this gives the housing market such a solid foundation today. Having so many homeowners with such low mortgage rates helps us avoid a crisis with a flood of foreclosures coming to market like there was back in 2008.
2. The Amount of Homeowner Equity
Second, Americans are sitting on tremendous equity right now. According to the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a> and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, roughly two-thirds (around 68%) of homeowners have either paid off their mortgage or have at least 50% equity (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" /></a>
In the industry, the term for this is <a href="https://www.keepingcurrentmatters.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank">equity</a> rich. This is significant because if you think back to 2008, some people had to make the difficult decision to walk away from their homes because they owed more on the home than it was worth.
But this time, things are different because homeowners have built up so much equity over the past few years alone. And, when homeowners have that much equity, it helps us avoid another wave of distressed properties coming onto the market like we saw during the crash. It also creates an extremely strong foundation for today’s housing market.
Bottom Line
We are in one of the most foundationally strong housing markets of our lifetime because homeowners are going to fight to keep their current mortgage rate and they have a tremendous amount of equity. This is yet another reason things are fundamentally different than in 2008.
CTO: <a href="https://www.keepingcurrentmatters.com/2023/06/08/this-real-estate-market-is-the-strongest-of-our-lifetime/">https://www.keepingcurrentmatters.com/2023/06/08/this-real-estate-market-is-the-strongest-of-our-lifetime/</a>2023-06-08T07:54:41-07:002023-06-08T08:13:38-07:00Nick Wagenknechttag:sresells.com,2012-09-20:28422Understanding Leaseback: A Win-Win Solution for HomeownersWhen it comes to homeownership, many people are familiar with the traditional process of buying or selling a property. However, there's a lesser-known option called "leaseback" that offers unique benefits for both buyers and sellers. In this blog post, we'll explore what a leaseback is and how it can be a mutually advantageous solution in today's real estate market.
What is a Leaseback?
A leaseback, also known as a sale-and-leaseback or rent-back, is a real estate transaction where the seller of a property agrees to sell their home to a buyer and then immediately lease it back from the new owner. In simple terms, it involves selling a property and becoming its tenant, allowing the original homeowner to continue living in their home while renting it from the new owner.
How Does Leaseback Work?
The process of leaseback is relatively straightforward. Here's a step-by-step breakdown:
Agreement: The homeowner and potential buyer agree on the terms and conditions of the leaseback arrangement, including the sale price, duration of the lease, and rental amount.
Sale: The homeowner sells the property to the buyer, transferring ownership through a standard real estate transaction.
Lease: After the sale, the homeowner becomes the tenant and enters into a lease agreement with the buyer, specifying the terms of the rental, such as the monthly rent, duration, and any other relevant conditions.
Occupancy: The homeowner continues to live in the property, now as a tenant, paying rent to the new owner.
Benefits of Leaseback for Sellers
Convenient Transition: Leaseback offers homeowners a smooth transition from selling to finding a new place to live. It provides additional time to find a new home and avoid the hassle of moving twice.
Access to Equity: Selling a property through a leaseback arrangement allows homeowners to access the equity tied up in their homes. This can be especially beneficial for those who need funds for various purposes, such as purchasing a new property, paying off debt, or funding retirement.
Stability and Familiarity: Leaseback allows homeowners to continue living in their familiar surroundings, avoiding the disruption and stress that often come with moving to a new home. It provides stability, especially for families with children or individuals who are attached to their communities.
Benefits of Leaseback for Buyers
Immediate Cash Flow: Buyers who enter into a leaseback arrangement can start earning rental income from day one. This can be particularly appealing for real estate investors looking to generate cash flow or offset the costs of owning the property.
Assured Tenancy: Leaseback agreements often come with fixed lease terms, ensuring a predictable rental income for the buyer. This can provide stability and reduce the risks associated with finding tenants in a competitive rental market.
Property Maintenance: In many leaseback arrangements, the responsibility for property maintenance and repairs lies with the homeowner, not the buyer. This can be a significant advantage for buyers who wish to minimize their responsibilities as landlords.
Conclusion
Leaseback arrangements can be an attractive alternative for homeowners who want to sell their property but also desire to stay in their homes. It offers a range of benefits, such as a convenient transition, access to equity, stability, and immediate cash flow for buyers. However, it's crucial for both parties to carefully negotiate and document the terms of the leaseback agreement to ensure a fair and mutually beneficial arrangement.
Whether you're a homeowner considering a leaseback or a buyer exploring investment opportunities, understanding this option can help you make informed decisions in the ever-evolving real estate market.2023-06-06T07:09:09-07:002023-06-06T07:22:12-07:00Nick Wagenknechttag:sresells.com,2012-09-20:27721Moving Now Can Give Your House Its Day in the Sun [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/4534/image/nickwagenknecht/Moving-Now-Can-Give-Your-House-Its-Day-In-The-Sun-NM.jpg" width="800" height="2136" />
<a href="https://www.keepingcurrentmatters.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="bookmark" title="Moving Now Can Give Your House Its Day in the Sun [INFOGRAPHIC]"></a>
Some Highlights
<a href="https://www.keepingcurrentmatters.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="bookmark" title="Moving Now Can Give Your House Its Day in the Sun [INFOGRAPHIC]"></a>
If you want to <a href="https://www.keepingcurrentmatters.com/2023/05/05/reasons-to-sell-your-house-today-infographic/" rel="noopener noreferrer" target="_blank">sell your house</a>, consider doing it this summer. The days are longer, the weather is warmer, and it’s a <a href="https://www.keepingcurrentmatters.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank">great time</a> for sellers.
If your needs have <a href="https://www.keepingcurrentmatters.com/2023/05/08/it-may-be-time-to-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">changed</a>, now’s the time to <a href="https://www.keepingcurrentmatters.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank">capitalize</a> on the <a href="https://www.bankrate.com/real-estate/housing-market-predictions/#predictions" rel="noopener noreferrer" target="_blank">low inventory</a> and <a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" rel="noopener noreferrer" target="_blank">multiple offers</a> in today’s <a href="https://www.keepingcurrentmatters.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" target="_blank">sellers’ market</a>.
Connect with a local real estate agent today if you’re ready to sell your house and move to a home that meets your <a href="https://www.keepingcurrentmatters.com/2023/05/04/how-homeowners-win-when-they-downsize/" rel="noopener noreferrer" target="_blank">changing needs</a>.
<a href="https://www.keepingcurrentmatters.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="bookmark" title="Moving Now Can Give Your House Its Day in the Sun [INFOGRAPHIC]"> </a>
CTO: <a href="https://www.keepingcurrentmatters.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/">https://www.keepingcurrentmatters.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/</a>2023-06-01T08:18:14-07:002023-06-01T08:29:03-07:00Nick Wagenknechttag:sresells.com,2012-09-20:275865 Reasons you should not avoid a fixer-upperEmbrace the Challenge: 5 Reasons You Should Not Avoid a Fixer-Upper
When it comes to buying a home, most people dream of finding the perfect, move-in-ready property. However, there's another type of property that shouldn't be overlooked—the fixer-upper. While the idea of purchasing a home in need of repairs may seem daunting at first, there are compelling reasons why you should consider embracing the challenge. In this blog post, we'll explore five key reasons you should not avoid a fixer-upper and why it might be the right choice for you.
Potential for Increased Equity: One of the most significant advantages of purchasing a fixer-upper is the potential for increased equity. When you buy a property in need of repairs, you have the opportunity to purchase it at a lower price. By investing your time, effort, and resources into renovations, you can substantially increase the value of your home. This increased equity can be a game-changer when it comes to building long-term wealth.
Customization and Personalization: A fixer-upper offers you the chance to create a home that truly reflects your personal style and preferences. Unlike move-in-ready homes, where you may have to compromise on certain features, a fixer-upper allows you to customize the space according to your vision. From choosing the paint colors to selecting the flooring and fixtures, the possibilities for personalization are endless. By adding your personal touch, you can create a space that is truly yours.
Enhanced Home Inspection and Awareness: When buying a fixer-upper, you have the advantage of conducting a thorough home inspection. This process allows you to identify any existing issues, such as structural concerns, electrical problems, or plumbing issues. By gaining a comprehensive understanding of the property's condition, you can make informed decisions about repairs and renovations. This heightened awareness will provide peace of mind and help you prioritize your budget effectively.
Lower Purchase Price: Compared to move-in ready homes, fixer-uppers typically have a lower purchase price. This affordability factor can make homeownership more accessible, especially for first-time buyers or those looking to invest in real estate. With the money saved on the initial purchase, you'll have more resources to allocate towards renovations and upgrades. Although the process may require some patience and hard work, the financial benefits can be substantial in the long run.
Learning and Growth Opportunities: Taking on a fixer-upper is not just a financial investment; it's also an opportunity for personal growth and learning. From managing renovation projects to acquiring DIY skills, the process of transforming a fixer-upper into a beautiful home can be incredibly rewarding. You'll gain valuable knowledge about construction, design, and home improvement along the way, which can be beneficial for future endeavors. Moreover, the sense of accomplishment that comes with seeing your hard work materialize is truly unmatched.
Conclusion: While the idea of buying a fixer-upper may seem intimidating, the rewards are well worth the effort. The potential for increased equity, customization options, enhanced home inspection, affordability, and personal growth make fixer-uppers an attractive choice for many homebuyers. By taking on the challenge, you can not only create your dream home but also lay the foundation for long-term financial stability. So, don't shy away from a fixer-upper—embrace the opportunity and watch your vision come to life.2023-05-30T07:32:20-07:002023-05-30T07:49:38-07:00Nick Wagenknechttag:sresells.com,2012-09-20:27537A CRASH COURSE: INVESTING IN REAL ESTATE<br />Investing in real estate can be a lucrative venture, but success often hinges on the ability to evaluate properties effectively. Savvy investors understand that profitable homes are not just found by luck; they require thorough analysis and careful consideration. In this crash course, we will explore some key ways that experienced investors evaluate properties, helping you make informed decisions and increase your chances of finding profitable real estate opportunities.
Location, Location, Location
One of the fundamental principles of real estate investing is the significance of location. A savvy investor understands that the location of a property plays a crucial role in its long-term profitability. Here are some factors to consider:
a. Neighborhood: Evaluate the neighborhood's amenities, infrastructure, and proximity to schools, hospitals, shopping centers, and public transportation. Look for signs of growth and development, as these indicators suggest potential appreciation.
b. Economic Factors: Consider the economic stability of the area, including job growth, population trends, and the presence of diverse industries. A thriving local economy usually translates into increased demand for housing.
c. Safety and Security: Assess the crime rate and the overall safety of the neighborhood. Properties located in safer areas often attract better tenants and command higher rental or resale values.
Market Analysis
Conducting a comprehensive market analysis is essential for understanding the supply and demand dynamics of a specific area. Here are a few steps to help you evaluate the market:
a. Comparative Market Analysis (CMA): Compare similar properties in the area to determine the average sales price, rental rates, and vacancy rates. This information will give you a baseline for evaluating potential investment opportunities.
b. Rent Potential: Analyze the local rental market to determine the potential rental income of the property. Look for rental demand, vacancy rates, and rental trends in the area.
c. Real Estate Market Trends: Stay up to date with market trends, including property values, inventory levels, and interest rates. Analyzing these trends will help you identify emerging opportunities and make informed decisions.
Property Condition and Potential
Assessing the condition and potential of a property is crucial in determining its profitability. Consider the following factors:
a. Physical Condition: Conduct a thorough inspection of the property to identify any structural issues, necessary repairs, or renovations. Calculate the costs involved in bringing the property up to the desired standard.
b. Appreciation Potential: Evaluate the potential for property appreciation over time. Factors such as planned developments, infrastructure improvements, or gentrification in the area can significantly impact the property's value.
c. Rental or Resale Potential: Consider the property's appeal to potential tenants or buyers. Analyze the layout, size, amenities, and any unique features that could attract and retain tenants or increase the resale value.
Financial Analysis
To ensure a profitable investment, it is essential to conduct a thorough financial analysis of the property. Some key factors to consider include:
a. Cash Flow: Calculate the expected cash flow by subtracting all expenses (mortgage, taxes, insurance, maintenance, vacancies) from the anticipated rental income. Positive cash flow indicates a potentially profitable investment.
b. Return on Investment (ROI): Evaluate the ROI by comparing the property's expected annual income to the initial investment. Consider both short-term gains (rental income) and long-term appreciation potential.
c. Financing Options: Explore financing options available to you, such as mortgages, interest rates, and loan terms. Carefully assess the financial feasibility of the investment and calculate your expected return under different scenarios.
Conclusion
Evaluating properties is a critical skill for savvy investors seeking profitable real estate opportunities. By considering location, conducting market analysis, assessing property condition and potential, and performing a financial analysis, you can make informed decisions and increase your chances of success. Remember, real estate investing requires careful analysis, patience, and a long-term perspective. With this crash course as your guide, you're now better equipped to embark on your journey toward finding profitable homes in the real estate market. 2023-05-25T07:33:39-07:002023-10-26T07:41:34-07:00Nick Wagenknechttag:sresells.com,2012-09-20:27471DIY Is For Home Projects Not The Sale of Your Largest AssetMany people think they can save money and sell their house easily on their own to save on commission costs. All you have to do is list your home on Zillow and people will contact you, see your house, and you’ll find a buyer. Sounds simple, right?
WRONG!
When it comes to selling your home, it's natural to want to maximize your profits and minimize your expenses. In today's world of readily available information and numerous online tutorials, the do-it-yourself (DIY) approach has become increasingly popular. While DIY projects can be a great way to save money and unleash your creativity, there are certain areas where it's wiser to leave things to the professionals. One such area is selling your largest asset – your home. In this blog post, we'll explore why DIY is more suited for home projects and why it's essential to rely on experts when it comes to selling your property.
1. Expertise Matters:
Selling a home involves a myriad of complex tasks, legal requirements, and market intricacies. Unless you have professional experience in real estate, it's challenging to navigate the intricacies of the process effectively. Real estate agents specialize in the art of selling homes and possess valuable expertise in areas such as pricing, marketing, negotiation, and legal documentation. Their knowledge and experience can make a significant difference in the success of your home sale.
2. Proper Pricing:
Determining the right price for your home is crucial to attract potential buyers and secure the best possible deal. While there are online tools available that provide estimates, they often lack the context and detailed analysis required to accurately assess your home's value. Real estate agents have access to comprehensive market data, recent sales records, and neighborhood trends, allowing them to perform a thorough comparative market analysis (CMA) to determine an appropriate listing price. This ensures that your home is competitively priced, maximizing its chances of selling quickly and at the right price.
3. Effective Marketing:
Selling a home involves more than just placing a "For Sale" sign in your front yard. Successful marketing requires a well-rounded strategy encompassing online listings, professional photography, virtual tours, staging, open houses, and targeted advertising. Real estate agents possess the marketing skills and resources to showcase your property in the best possible light and attract qualified buyers. They have access to multiple listing services (MLS) and extensive networks to expose your home to a wide range of potential buyers, increasing your chances of finding the right buyer quickly.
4. Negotiation Expertise:
Negotiating the sale of a home can be an intricate dance, with potential buyers and their agents aiming to secure the best deal for themselves. Real estate agents are trained negotiators who can navigate these negotiations on your behalf. They understand the psychology of negotiation, possess market insights, and have experience dealing with various buyer strategies. Their expertise helps ensure that you receive the best possible offers and favorable terms, protecting your interests throughout the process.
5. Legal and Administrative Considerations:
Selling a home involves a considerable amount of paperwork, legal contracts, and compliance with local regulations. Mistakes or oversights in these areas can lead to costly delays, legal disputes, or even the sale falling through. Real estate agents are well-versed in the legal and administrative aspects of the home-selling process. They can guide you through the necessary documentation, ensure compliance with local laws, and minimize the risk of errors that could jeopardize the transaction.
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Conclusion:
While the DIY approach can be rewarding for various home projects, selling your largest asset requires professional expertise. A real estate agent's knowledge, experience, and resources are invaluable when it comes to pricing your home accurately, effectively marketing it to potential buyers, negotiating favorable terms, and navigating the legal complexities of the process. By entrusting the sale of your home to an expert, you can optimize your chances of a successful and profitable transaction. So, when it comes to selling your home, remember that DIY is for home projects, not the sale of your largest asset.
2023-05-23T06:37:31-07:002023-05-23T06:54:52-07:00Nick Wagenknechttag:sresells.com,2012-09-20:27388Debunking Real Estate MythsWhen it comes to owning, buying, or selling real estate, it can sometimes be difficult to tell the myths apart from what is actually true.
So to help, I've put together a list of the top misconceptions I hear regularly, and my thoughts on each, to help you make more informed decisions when it comes to your next real estate transaction.
MYTH #1: Agents Just show homes
While touring homes is one of my favorite parts of the job, it's not the only thing I do. I also answer phone calls and emails, schedule appointments and showings, handle negotiations and write contracts, search for and preview homes for my buyers, prepare and market my listings, and so much more. Buying a home is a complex process that can sometimes feel overwhelming, and I'm there to guide my clients every step of the way!
Myth #2: Buyers get a better deal if they don’t use an agent
WRONG. The benefits of working with an agent as a buyer are largely the same as the benefits of working with an agent as a seller. Your agent can help you negotiate a fair price, they can give you access to all the latest listings, and can help you find homes that meet your budget and needs. They will also walk through homes with you and give their professional input. It's crucial to have your own representation, apart from the seller's agent, to look out for your best interests and guide you throughout the process.
Myth #3: A home passes or fails inspection
An inspection is meant to assess the condition of a home. An inspector doesn’t “pass” or “fail” a home. They will provide a detailed report explaining all of the issues they find, along with a summary of the age of key systems such as plumbing, electric, HVAC, and the roof, along with an estimate of the "economic life" remaining on those systems.
Myth #4: Schools Don’t Matter if You Don’t Have Kids
Even if you don’t have children, buying a house in a good school district means your home will have a greater resale value. Although it may not be important to you, for many buyers, the school district is a high priority, and a bad school district can even cause a home to depreciate in value over time.
There is so much bad advice floating around (cough, internet, cough) and even the good advice doesn't always apply to every location or type of home.
Did you have any misconceptions about real estate before you bought or sold that ended up not being true?
2023-05-18T07:30:27-07:002023-05-18T08:01:25-07:00Nick Wagenknecht