Month: April 2021

In a sellers’ market, some homeowners might be tempted to try to sell their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as low as it is today, buyers are eager to snatch up virtually any house that comes to market. This makes it even more tempting to FSBO. As a result, some sellers think selling their house will be a breeze and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.

According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.

The NAR report explains:

“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000…Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”

When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):That’s a lot of money to risk losing when you FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still crucial to have the support of an expert to guide you through the process. Real estate professionals are trained negotiators with a ton of housing market insights that average homeowners may never have. An agent’s expertise can alleviate much of the stress of selling your house and help you close the best possible deal when you do.

Bottom Line

If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. Let’s connect to discuss how a trusted advisor can help you, especially in today’s market.

Last Friday, the Bureau of Labor Statistics released a very encouraging jobs report. The economy gained 916,000 jobs in March – well above expert projections of 650,000 to 675,000. The unemployment rate fell again and is now at 6%.

What does this mean for you?

Our lives are deeply impacted by our nation’s economy. The better the economy is doing overall, the better most individuals in the country will do as well. Here’s a look at what four experts told the Wall Street Journal after reviewing last week’s report.

Michael Feroli, JPMorgan Chase:

“The powerful tailwind of the reopening of economic activity appears to be gathering force; while the level of employment last month was still 8.4 million positions below that which prevailed before the pandemic, it is reasonable to expect that a majority of those lost jobs will be recouped in coming months.”

Mike Fratantoni, Mortgage Bankers Association:

“We fully expect that this pace of job gains will continue for months, and anticipate that the unemployment rate, now at 6%, will be well below 5% by the end of the year.”

Paul Ashworth, Capital Economics:

“With the vaccination program likely to reach critical mass within the next couple of months and the next round of fiscal stimulus providing a big boost, there is finally real light at the end of the tunnel.”

Jason Schenker, Prestige Economics:

“People are getting back to work and the vaccine isn’t just inoculating the population, it’s clearly inoculating the economy.”

What does this mean for residential real estate?

Today, the biggest challenge for homebuyers is the lack of homes currently for sale. With listing inventory down 52% from a year ago, bidding wars are skyrocketing. As a result, home prices are climbing.

One answer to this challenge is to build more homes to satisfy the demand. The latest jobs report gives hope for new housing construction, and therefore brings hope to buyers as well. Here’s what three industry economists said about the increase in construction jobs revealed in the report:

Lawrence Yun, Chief Economist, National Association of Realtors:

“Construction jobs boomed in March, one of the largest monthly gains ever. This raises the prospect for more home building and more inventory reaching the market in the upcoming months. The housing market has been hot with fast rising home prices but has been constrained by a lack of supply. By hiring more workers and building more homes, home prices will move to a manageable level to give more Americans a shot at ownership.”

Odeta Kushi, Deputy Chief Economist, First American:

“Great jobs report for a housing market in an inventory crisis. Residential construction building jobs increased 3.9% from pre-2020 recession peak in Feb. 2020. The construction industry remains a labor-intensive industry. We need more hammers at work to build more homes.”

Robert Dietz, Chief Economist, National Association of Home Builders:

“Good job numbers in March for residential construction. 37,000 gain from Feb to March. 3.03 million total employment for home builders and remodelers, and up 49,100 from Jan 2020.”

Bottom Line

An improving economy with a falling unemployment rate will benefit households across the country, as well as the overall housing market.

A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:

• 88% – a better chance of saving for retirement
• 87% – the best investment plan
• 85% – the chance to be better off financially
• 85% – the chance to build up wealth

Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.

Does homeownership actually give you a better chance to build wealth?

No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset.

Last fall, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

The difference in net worth between homeowners and renters has continued to grow. Here’s a graph showing the results of the last four Fed surveys:The above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:Others may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

Homeowners 65 and older have 47.6 times greater net worth than renters.

Bottom Line

The idea of homeownership as a direct way to build your net worth has met the test of time. Let’s connect if you’re ready to take steps toward becoming a homeowner.

April 6, 2021Media Contact: Quintin Simmons 202-383-1178
NAR Finds Home Staging Helps Buyers Visualize, Homes Sell Faster

Key Highlights

• Eighty-two percent of buyers’ agents said staging made it easier for a buyer to visualize the property as a future home.
• More than 7 in 10 agents find photos, videos and virtual tours more important since the start of the COVID-19 pandemic.
• Agents say TV shows depicting the homebuying process have impacted their business.

WASHINGTON (April 6, 2021) – A new survey from the National Association of Realtors® reveals that home staging continues to be a significant part of the home buying and selling process.

The biennial report, the 2021 Profile of Home Staging, examines the elements of home staging, including the perspectives of both buyers’ and sellers’ agents, the role of television programing and the expectations of buyers.

“Staging a home helps consumers see the full potential of a given space or property,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights. “It features the home in its best light and helps would-be buyers envision its various possibilities.”

Buyers’ agents overwhelmingly agreed, as 82% said staging a home made it easier for a buyer to visualize the property as a future home.

These agents also said that visuals themselves are helpful, even more so in relation to buying a house during the coronavirus outbreak. Eighty-three percent of buyers’ agents said having photographs for their listings was more important since the beginning of the pandemic. Seventy-four percent of buyers’ agents said the same about videos, and 73% said having virtual tours available for their listings was more important in the wake of COVID-19.

“At the start of the pandemic, in-person open house tours either diminished or were halted altogether, so buyers had to rely on photos and virtual tours in search of their dream home,” said Lautz. “These features become even more important as housing inventory is limited and buyers need to plan their in-person tours strategically.”

Staging also increased the sum buyers were willing to spend for a property, according to the report. Twenty-three percent of buyers’ agents said that home staging raised the dollar value offered between 1% and 5%, compared to similar homes on the market that hadn’t been staged.

Coincidently, the response from sellers’ agents was nearly identical, as 23% reported a 1% to 5% price increase on offers for staged homes.

Eighteen percent of sellers’ agents said home staging increased the dollar value of a residence between 6% and 10%. None of the agents for sellers reported that home staging had a negative impact on the property’s dollar value.

Moreover, 31% said that home staging greatly decreased the amount of time a home spent on the market.

Exactly which parts of a home to stage vary, although living rooms (90%) and kitchens (80%) proved to be the most common, followed closely by master bedrooms (78%) and dining rooms (69%). As many workers were forced to work from home due to the pandemic, 39% staged a home office or office space.

Television programing played a noticeable role in how buyers viewed a potential property, according to Realtors®. Agents surveyed said that typically 10% of buyers believed homes should look the way they appear on TV shows. Sixty-three percent said buyers requested their home look like homes staged on television. Sixty-eight percent of Realtors® reported that buyers were disappointed by how homes appeared compared to those seen on TV shows.

In some cases, agents found that TV shows could influence a buyer’s perspective about a home. Seventy-one percent of respondents said that TV shows that depict the buying process impacted their business by setting unrealistic or increased expectations. Sixty-one percent said that TV programs set higher expectations of how homes should look, while 27% said that TV shows result in more educated home buyers and sellers.

“The magic of television can make a home transformation look like it happened in a quick 60-minute timeframe, which is an unrealistic standard,” said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and broker/owner of Prominent Properties Sotheby’s International Realty. “I would advise buyers and sellers alike that before house hunting or before listing, they connect with a trusted Realtor® to get a reasonable sense of what’s out there and an idea of what to expect.”

Eight-one percent of those surveyed said buyers had ideas about where they wanted to live and what they wanted in an ideal home (76%) before they began the buying process.

Forty-five percent of surveyed Realtors® said they have seen no change in the share of buyers who planned to flip a home in the last five years, while 42% said they had.

Also, 59% said they have seen an increase in the buyers who planned to remodel a home in the last five years, while 34% said they have seen no change. Agents surveyed said that typically 25% of buyers who plan to remodel will do so within the first three months of owning their home.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

The Takeaway:
Staging works! I can help you stage your home to make the greatest impact on buyers and to showcase your home so you can get the highest price for the best deal! I am a trained stager and I also like to hire a staging consultant for my sellers. It helps you maximize the potential of your home and your return.

If you’re planning to buy a home this year, saving for a down payment is one of the most important steps in the process. One of the best ways to jumpstart your savings is by starting with the help of your tax refund.

Using data from the Internal Revenue Service (IRS), it’s estimated that Americans can expect an average refund of $2,925 when filing their taxes this year. The map below shows the average anticipated tax refund by state:Thanks to programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae, many first-time buyers can purchase a home with as little as 3% down. In addition, Veterans Affairs Loans allow many veterans to put 0% down. You may have heard the common myth that you need to put 20% down when you buy a home, but thankfully for most homebuyers, a 20% down payment isn’t actually required. It’s important to work with your real estate professional and your lender to understand all of your options.

How can your tax refund help?

If you’re a first-time buyer, your tax refund may cover more of a down payment than you realize.

If you take into account the median home sale price by state, the map below shows the percentage of a 3% down payment that’s covered by the average anticipated tax refund:The darker the blue, the closer your tax refund gets you to homeownership when you qualify for one of the low down payment programs. Maybe this is the year to plan ahead and put your tax refund toward the down payment on a home.

Not enough money from your tax return? 

A recent paper from the National Bureau of Economic Research found that, of the households that received a stimulus check last year, “One third report that they primarily saved the stimulus money.” If you had the opportunity to save your Economic Impact Payments, you may consider putting that money toward your down payment or closing costs as well. Your trusted real estate professional can also advise you on the down payment assistance programs available in your area.

Bottom Line

Saving for a down payment can seem like a daunting task, but it doesn’t have to be. This year, your tax refund and your stimulus savings could add up big when it comes to reaching your homeownership goals.

By Leslie Cook April 3, 2021
https://money.com/todays-mortgage-rates-april-3-2021/

The latest average rate offered for a 30-year fixed rate mortgage is 3.6%. That’s up from a week ago, though rates have stayed in a relatively tight range all week.

Most other loan types are up for the week as well. Nonetheless, rates are low historically.

Even borrowers with the highest credit scores and large down payments, rarely saw rates below 4% low until the last few years. So, if you are looking to buy a home with a mortgage or refinancing an existing loan it may still be a good time.

• The latest rate on a 30-year fixed-rate mortgage is 3.6%.
• The latest rate on a 15-year fixed-rate mortgage is 2.637%.
• The latest rate on a 5/1 jumbo ARM is 2.968%.
• The latest rate on a 7/1 conforming ARM is 4.474%.
• The latest rate on a 10/1 conforming ARM is 4.724%.

Current 30-year fixed mortgage rates

• The 30-year rate is 3.6%.
• That’s a one-day decrease of 0.017 percentage points.
• That’s a one-month increase of 0.264 percentage points.

The interest rate on a 30-year fixed-rate mortgage and the required monthly payment won’t change over the life of the loan. If paid as required, the loan will be paid off in 360 months unless you refinance or sell the home. You can also pay the loan off in a lump sum at any time or pay extra each month.

A 30-year loan will have a higher interest rate compared to a shorter-term loan like a 15 year. The monthly payments will be lower because the balance is spread over a longer period of time. You will pay more in total interest on a 30-year mortgage, however, because you’ll be paying a higher rate for a longer time. Current 15-year fixed mortgage rates

• The 15-year rate is 2.637%.
• That’s a one-day decrease of 0.014 percentage points.
• That’s a one-month increase of 0.146 percentage points.

With a 15-year fixed-rate mortgage, your interest rate and monthly payment won’t change throughout the full term of the loan. By paying only the required amount each month, the mortgage will be paid off in 180 months. You can pay the loan off before the full term by making a lump sum payment or paying extra each month.

Compared to a 30-year loan, the interest rate on a 15-year mortgage will be lower but the monthly payment will be higher because you’re paying it off in half the time. However, you will save on overall interest because you’re paying a lower rate over half the time.

Borrowers who can afford the higher monthly payments may opt for a 15-year loan in order to pay the debt off faster or save on interest.

Current 5/1 jumbo adjustable-rate mortgage rates

• The 5/1 ARM rate is 2.968%.
• That’s a one-day decrease of 0.002 percentage points.
• That’s a one-month decrease of 0.045 percentage points.

The interest rate on an adjustable-rate mortgage will be fixed for an initial period. Once that set time ends, the rate can either increase or decrease according to market conditions. Consequently, the monthly payment won’t change during the fixed-rate period but can change if the rate changes.

As an example, a 5/1 adjustable-rate mortgage will have a fixed rate during the first five years, then the rate will reset once a year. Other common adjustable-rate loan terms include a 7/1 and a 10/1. All ARMs will be paid off in 360 months.

The initial low rate can make a 5/1 ARM popular among borrowers who don’t plan on keeping the home beyond the fixed-rate period. However, if they do decide to stay in the home, the should be aware that the interest rate could increase at some point in the future.

Current VA, FHA and jumbo loan rates

The average rates for FHA, VA and jumbo loans are:

• The rate on a 30-year FHA mortgage is 3.367%.
• The rate on a 30-year VA mortgage is 3.452%.
• The rate on a 30-year jumbo mortgage is 3.73%.

Current mortgage refinance rates

The average rates for 30-year loans, 15- year loans and 5/1 jumbo ARMs are:

• The refinance rate on a 30-year fixed-rate refinance is 3.886%.
• The refinance rate on a 15-year fixed-rate refinance is 2.94%.
• The refinance rate on a 5/1 jumbo ARM is 3.407%.
• The refinance rate on a 7/1 conforming ARM is 4.777%.
• The refinance rate on a 10/1 conforming ARM is 5.022%.

Where are mortgage rates heading this year?

Mortgage rates sunk through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they may not have been able to afford if rates were higher.

In January 2021, rates briefly dropped to the lowest levels on record, but trended higher through the month and into February.

Looking ahead, experts believe interest rates will rise more in 2021, but modestly. Factors that could influence rates include how quickly the COVID-19 vaccines are distributed and when lawmakers can agree on another economic relief package. More vaccinations and stimulus from the government could lead to improved economic conditions, which would boost rates.

While mortgage rates are likely to rise this year, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates should stay near historically low levels through the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a favorable time to finance a new home or refinance.

Factors that influence mortgage rates include:

• The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March of 2020. The Fed announced plans to keep money moving through the economy by dropping the short-term Federal Fund interest rate to between 0% and 0.25%, which is as low as they go. The central bank also pledged to buy mortgage-backed securities and treasuries, propping up the housing finance market. The Fed has reaffirmed its commitment to these policies for the foreseeable future multiple times, most recently at a late January policy meeting.
• The 10-year Treasury note. Mortgage rates move in lockstep with the yields on the government’s 10-year Treasury note. Yields dropped below 1% for the first time in March, and have been slowly rising since then. Currently, yields have been hovering above 1% since the beginning of the year, pushing interest rates slightly higher. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
• The broader economy. Unemployment rates and change in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can push interest rates down. Thanks to the pandemic, unemployment levels reached all-time highs early last year and have not yet recovered. GDP also took a hit, and while it has bounced back somewhat, there is still a lot of room for improvement.

Tips for getting the lowest mortgage rate possible

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a little bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and credit report. Errors or other red flags that may be dragging your credit score down. Borrowers with the highest credit scores are the ones who will get the best rates, so checking your credit report before you start the house-hunting process is key. Taking steps to fix errors will help you raise your score. If you have high credit card balances, paying them down can also provide a quick boost.

Save up money for a sizeable down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender you have the money to finance the home purchase.

Shop around for the best rate. Don’t settle for the first interest rate that a lender offers you. Check with at least three different lenders to see who offers the lowest interest. Also consider different types of lenders, such as credit unions and online lenders in addition to traditional banks.

Also take time to find out about different loan types. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan like a 15-year loan or an adjustable-rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which one best fits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, the Department of Veterans Affairs and the Department of Agriculture — can be more affordable options for those who qualify.

Finally, lock in your rate. Locking your rate once you’ve found the right rate, loan product and lender will help guarantee your mortgage rate won’t increase before you close on the loan.

Our mortgage rate methodology

Money’s daily mortgage rates show the average rate offered by over 8,000 lenders across the United States the most recent business day rates are available for. Today, we are showing rates for Thursday, April 1. Our rates reflect what a typical borrower with a 700 credit score might expect to pay for a home loan right now. These rates were offered to people putting 20% down and include discount points.

By Brenda Richardson April 3, 2021
https://money.com/how-to-buy-a-first-home

Just like lockdown orders unleashed panic buying of toilet paper, the pandemic has fueled a feeding frenzy on homes. Unfortunately, some new homeowners wish they had never stocked up.

Record-low mortgage rates, a desire for more space and the sudden shift to remote work have triggered huge demand for homes. Buyers have felt pressure to move fast and spend big, as they’ve come up against the madness of bidding wars and all-cash offers.

About a year after the binge began, some homeowners are feeling remorseful and learning that homeownership can lead to heartbreak if you’re not financially and emotionally prepared.

In a LendEdu survey, 55% of people said they regret taking out a mortgage during the pandemic. A recent article in the Wall Street Journal profiled homebuyers with serious misgivings about their new homes. “I hate this house so much,” declared one woman who spent $600,000 on a place near Los Angeles last August.

But even in today’s competitive market, buyer’s remorse is avoidable. Before making your purchase, consider these common causes of home buying stress and how to prevent them.

Slow your roll before making any moves

As vice president of field mortgage operations for Navy Federal Credit Union in Hyattsville, Md., Kevin Parker has questioned some of the decisions he’s seen borrowers make this year.

“We’re definitely seeing a lot of our members — borrowers in general — applying for preapprovals at the last second for the purpose of getting something in their hands so they can submit an offer very quickly,” he says. At that point, it’s often too late to make the deal happen.

Then, in early March, Parker found himself scrambling for a pre-approval letter of his own. “I saw a property I thought was ideal on a Friday, and then I turned around on Saturday and made an offer on it,” he says. “I became one of those last-minute borrowers.”

He lost out to an all-cash buyer willing to pay 10% over the asking price, but he’ll be more prepared next time. “It’s an emotional process, and so to be turned down, it hurts,” says Parker.

To avoid heartache, Parker recommends getting in contact with a lender for a preapproval early in the search process. Not only does it show sellers that you’re a serious buyer who can close the deal, but it tells you the type and amount of loan you can qualify for.

“Even if you just want to kick the tires, a lot of lenders like us, have ways that you don’t have to do a full credit pull,” he says. “You can do a soft pull or pre-pull just to get an idea where you stand.”

Lower your budget

The housing market has been on a tear in the suburbs surrounding San Francisco. In January, quarantine restlessness and low interest rates sent sales of existing single-family homes soaring 36% in the pricey Bay Area as buyers hunted for bargains.

“Home buying is definitely emotional, so I try to talk people out of writing an offer or pursuing something if they are not ready,” says Caitlin Cintas, a Bay Area agent for brokerage firm Compass. “It’s most important for buyers to feel comfortable that they are making a good decision.”

To avoid feeling swindled, she reminds buyers to factor in property taxes and insurance, and to carefully review the property disclosure form before moving forward with a deal.

To gain an edge in a hot market, many buyers are offering all cash or exceeding the asking price by a few thousand dollars, and some are paying the price of regret. A report from Redfin found that 39% of homes sold above their listing price during the four-week period ending March 21, an all-time high.

Some buyers who want the strongest bid possible in multiple bid situations include an escalation clause in their offers. Such a clause allows them to make an offer under the asking price but also gives them the chance to boost that offer if other buyers bid higher. Sales where multiple offers come in can be a bit confusing anyway, but an escalation clause only heightens the complexity. This could lead to a situation where a frustrated and desperate buyer’s offer goes higher than the home’s appraised value.

“One of the things I tell clients is the Bay Area is pretty crazy right now, so people could be selling in certain neighborhoods at 10% over list price,” says Cintas. If homes are selling at 5% or 10% over the sale price, she says, buyers should consider primarily looking at homes that are 5% to 10% under their maximum budget. That way, even if you have to bid up the price, you’re not going over budget.

“There are going to be many houses out there, so I never want my clients to be in situations where they are going to feel remorseful that they paid too much or they didn’t really think through everything as far as the neighborhood or health of the house,” she says.

Visit before making an offer

A first-time buyer recently reached out to Cintas about a home, but there was no way to see it because the offer deadline was in two hours.

“I had to write an offer sight unseen,” she says. “I just know some seasoned real estate investors have bought multiple homes sight unseen, but with a first-time buyer that’s really tricky.”

Buying a home without setting foot in it can be a risky proposition. Nearly two-thirds of people who bought a home last year made an offer on a property that they hadn’t seen in person, according to a Redfin survey. Unfortunately, for some buyers, the home purchase may not have been all they had bargained for.

While many listings provide virtual tours, those tend to highlight a home’s most desirable features. Many details don’t come across through videos and photos. When you visit a home in person, you might be able to smell cigarette smoke, tell if a room feels drafty or hear traffic from a busy road nearby. The countertops that looked like an expensive granite surface in listing photos could actually be laminate.

If you live far from where you are buying or just can’t make it to the house, make sure to hire a buyer’s agent you trust and ask them to do a FaceTime tour with you. “If we’re together on FaceTime and it smells like dog, I am going to tell you it smells like dog,” says Kathleen Martin, a real estate agent with Speicher Group of Long & Foster Real Estate in Bethesda, Md. who often works with military buyers who can’t visit in person.

Consider a home warranty

In November, Melanie Warner bought a chalet-style home in Oakhurst, Calif., a small mountain community near Yosemite National Park, with the goal of using it as a vacation rental property. But the way things have been going, it seems she could use a vacation day.

“I exceeded my budget by a lot,” says Warner. “I had to put down almost $50,000 between the escrow fees and the down payment to buy the property, and then I have had all these repairs every month that were not budgeted.” She estimates that she’s had to cover at least $2,000 in expenses she didn’t budget for every month.

Warner says she invested in an inspection and an appraisal, and none of the home’s defects showed up. But the first night her family was in the house, they had a close call with the wood-burning fireplace due to creosote buildup within the chimney walls.

“The whole house was filled with smoke,” says Warner. “The fire department had to come out, and we had to pay to have the chimney certified.”

Recent severe thunderstorms didn’t help matters. “It cost me $1,500 to trim one tree and $600 in pressure washing just to clean all the mud on the ground, the benches and everything because of all the storms,” she says.

Although maintenance costs kept piling up, Warner is fortunate to have a home warranty that has provided service, repair or replacement of some of her home’s major systems and appliances. If you’re buying a previously owned home, consider getting a home warranty from a reputable company, especially if your home inspection reveals that several of the home’s appliances and systems are nearing the end of their life span.

READ THE REST HERE: https://money.com/tips-avoid-home-buying-mistakes/

Some Highlights

• With so many buyers looking for homes to purchase and so few houses available today, there’s a substantial increase in bidding wars, and homes are selling fast.
• According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), on average, houses are receiving over four offers from buyers and they’re selling in less than three weeks.
• If you’re ready to make a move, let’s connect today so you can sell your house while the market is in your favor.