Want to Buy an Investment Property but Don’t Have a Large Down Payment? Fannie Mae Just Made It Easier for You…

It’s often said that the majority of millionaires made their money investing in real estate.
That’s certainly inspiring, but it can also seem entirely out of reach. After all, it’s also often said that you need money to make money. And when it comes to real estate investing, the money you need in order to make money comes in the form of a down payment.

So you probably picture real estate tycoons as people who came from money and simply inherited portfolios of property, or bought them with family money passed down over generations. But the truth is, 88% of millionaires are self-made according to a 2017 survey from Fidelity Investments!

Arnold Schwarzenegger is a great example of building wealth through real estate. Before he was a movie star, Arnold would take the money he won as a bodybuilder and use it as down payment on a multifamily property. He’d then live in one unit, while renting out the others. As he built up equity and cash flow, he’d buy another property. He didn’t make his millions by acting. Making millions by owning real estate gave him the financial freedom to pursue acting.

Unfortunately, buying a multifamily property has often required a down payment of between 15-25%. In theory, lenders have always looked at investment properties as something a person could more easily walk away from if they didn’t have a good amount of their own money invested in it, so they’ve typically required a larger down payment on investment properties.

To be fair, it is easier for someone to default on an investment property than it is on their own personal residence. People tend to be more careful about keeping a roof over their heads, which is why lenders have offered lower down payment options for owner-occupied personal residences for quite some time.

While plenty of people have used lower down payments to buy a single-family home to live in and build wealth, most haven’t been able to easily take real estate investing to the next level by buying multi-family houses due to thinking they need a larger down payment for one.

5% Down Payment Loans for Multifamily Properties

If a 15-25% down payment has been a hurdle for you to invest in a multifamily property, you might be interested to know that Fannie Mae just announced that they will be offering loans for multifamily homes with as little as 5% down payment for owner-occupied properties with 2, 3 or 4 units.

The Federal Housing Administration (FHA) has actually been offering loans for multifamily properties with as low as a 3.5% down payment for quite some time, so this might not seem earth-shattering to anyone who already knew there was a way to buy a multifamily with a low down payment. But it serves as a great reminder that it’s possible to buy a multifamily with a lower down payment, and it’s another option in the market for prospective investors to consider.

There are also some key differences between the low down payment programs Fannie Mae and FHA respectively offer:

  • When you put down less than 20% you will be required to pay private mortgage insurance (PMI) on either of these products. But with an FHA loan, you have to pay it for the entire length of the loan. That monthly surcharge will go away once you hit 20% equity on a Fannie Mae loan.
  • While it’s ideal for a rental property to not only cover your entire mortgage but also provide a positive cash flow, it’s not necessary for a multifamily to make sense as an investment depending on your situation. FHA requires that the property is “self-sufficient,” and rents must cover the entire amount of your mortgage payment on properties with 3-4 units. Fannie Mae does not require this.

Who Is This a Good Opportunity For?

These loans require that you live in the property, so it isn’t ideal if you’re looking for a straight up investment property you won’t live in. Loans with owner-occupied terms typically require that you personally move into the property within 60 days of closing on the loan, and live in the property for at least a year or two. So this is a great opportunity for several types of people, such as:

  • First-time home buyers who want to combine their first home purchase with their first investment property.
  • Home buyers who’ve been priced out of the single-family market and could use some income generated by their property to lower their housing costs.
  • Renters with roommates who want to become property owners and want to buy a place to live in and rent out the other units to their roommates.
  • “Home hackers” who want to live in one unit of the property while renting out the others and then repeat the process by buying another owner-occupied rental property after they’ve lived in it for the required amount of time.
  • Investors who want to take advantage of the lower down payment and can adjust their lifestyle and living arrangements for a period of time by living in their investment property.

If you fit any of those descriptions, you should reach out to your local real estate agent for a list of the mortgage advisors they trust to start the application process now. While you can’t close on one of these loans until November 18, 2023, you can get pre-approved, start getting your documentation and application ready, and look for a property you want to buy so you can close as early as November of this year and get on your way to becoming a real estate investor!

The Takeaway:

Coming up with a down payment to buy an investment property is often a hurdle for many people who want to buy a multifamily building. But Fannie Mae has just announced they’re now offering a low down payment loan which only requires 5% instead of the typical 15-25% they’ve required in the past.

This is a great opportunity to break into real estate investing for anyone who has a low down payment and can live in their investment property for a period of time.

Prepared Remarks of MBA President and CEO Bob Broeksmit, CMB, at the 2023 MBA Annual Convention and Expo

https://www.mba.org/news-and-research/newsroom/news/2023/10/16/prepared-remarks-of-mba-president-and-ceo-bob-broeksmit-cmb-at-the-2023-mba-annual-convention-and-expo?distinct_id=QrhrNqPEx&user_email=goodnightchristy%40gmail.com

Adam DeSanctis

PHILADELPHIA (October 16, 2023) – Bob Broeksmit, CMB, MBA President and CEO, delivered the following remarks at MBA’s 2023 Annual Convention and Expo.

[Please Note: These are prepared remarks. Mr. Broeksmit may add to or subtract from these remarks during the course of his presentation. Portions of the text may be omitted during the speech.]

Thank you!

It’s great to be together again. I look forward to seeing you all year long. And I think we all needed this conference more than usual.  

We all know that times are tough. The market is rocky, and margins are tight. You’ve spent every day of the past year making hard choices and fighting just to reach the next day. It’s been a real grind. And it may not end anytime soon.

But this conference is your chance to escape, for just a few days. It’s a good time to look beyond what we’re doing and remember why we do it. And it’s a chance to find strength and support in a community of peers.  

We’re in this together. And make no mistake – we will all come through this together!  

This is my 6th year speaking at Annual as MBA CEO.

Normally, I talk about the remarkable work you did over the previous year. Then I look at what we did on your behalf – the battles we fought and the victories we achieved. I close by reviewing what lies ahead – the policies we’re shaping, and the progress we hope to make. My tone is usually positive and upbeat.

But not this year.  

I’m not upbeat.  

Frankly, I’m upset.

To be clear, you still did inspiring things in the past 12 months. In fact, you did heroic work. You continued to serve families at the highest level. You continued to make the American Dream possible for millions of people.

By the same token, the MBA supported you every step of the way – residential, multifamily, and commercial. We achieved some great policy victories, at the federal and state levels. We defeated some bad ones, too. With margins tight, we drove efficiencies that hopefully helped you succeed and stay in the black. Our work on your behalf is even more important in a down market.

But here’s the thing.

While you’re fighting to survive, and while we’re fighting for you, Washington, D.C. is fighting against you. At a time when you and your customers need relief, you’re at risk of being hit with the most extreme overregulation. At a time when you desperately need stability, your own government is sowing the seeds of profound instability.  

Honestly, Washington is pushing you and our economy in the wrong direction. And no one will suffer more than American families – especially minority, low-income, and first-time homebuyers. This madness must stop before it’s too late.

MORTGAGE RATES

We’re taking this message to leaders in Washington every day. And right now, the most important battle we’re fighting is on interest rates.

The truth is, your customers and companies can’t afford what’s happening. The past few weeks saw an unprecedented run-up in mortgage rates. We’re now closing in on 8% for a 30-year.

In direct response, mortgage applications have fallen to multi-decade lows. And the collapse in homebuying threatens the survival of countless lenders.

While we understand the Fed raising rates in an effort to control inflation, there are other factors that are keeping the spread between the 10-year Treasury and the 30- year fixed so wide.

Fiscal policy and political dysfunction are contributing – the debt limit crisis, growing federal deficits, and gridlock on Capitol Hill that results in near-miss (or actual) government shutdowns.

MBA is shouting this truth from the rooftops in Washington. And we’re playing offense.

We’re holding meetings with key officials and lawmakers in Washington and telling them what’s at stake.

We joined with the realtors and homebuilders to send a letter to the Fed.

And we’re in the midst of a media blitz.

I was recently on CNBC. And I couldn’t have been more blunt about what we need.

It’s simple. No more interest rate hikes.

No selling MBS holdings until spreads have normalized and the market has stabilized.

And we don’t just want to see these things.

We want the Fed to SAY these things, for all to hear.

You deserve clarity, not more chaos.

And the MBA will never stop fighting to strengthen your companies!

BASEL III

Interest rates are an enormous threat to you, your customers, and our entire economy.

But they aren’t the only threat.

The so-called Basel III end-game proposal is dangerous too.

The Federal Reserve, the FDIC, and the OCC are trying to implement massive bank capital increases.

They think it will make our economy stronger and more resilient.

In fact, their Basel III rules are a dagger aimed at the heart of the housing market.

We all know the threat. Washington wants banks to significantly HIKE the capital they hold against mortgage assets.

Not just mortgages, but servicing. And warehouse lines.

If this goes through, banks will pull back even further from mortgage lending and servicing, leaving consumers with less access to credit.

Meanwhile, the credit that consumers will have access to will cost significantly more.

And make no mistake – weakening demand for mortgage servicing raises mortgage rates for ALL borrowers, whether they choose IMBs or banks.

It’s almost like Washington WANTS fewer people buying homes.

The proposed implementation of Basel III is fundamentally at odds with everything our nation’s leaders are saying.

The Biden administration.

Both parties in Congress.

Banking and housing regulators.

All of them are pushing to expand sustainable homeownership for those who need it most.

They want to close the racial homeownership gap. And they want more first-time homebuyers, especially in low- and middle-income families.

Mortgage lenders want the same thing.

Yet if Basel III goes into effect as proposed, meaningful progress is off the table. Equity will get worse, not better.

The racial homeownership gap will persist, if not grow.

And countless families won’t get a chance to buy their first home. They’ll fall behind, despite Washington’s constant promise to help them get ahead.

Regulators should have realized this.

They have a duty to analyze the harmful effects of their proposal. But they didn’t analyze it. Nor did they justify it.

They rolled out Basel III without doing the most basic due diligence – without telling us the problem they’re trying to solve.

In fact, there isn’t a problem, by their own admission.

The Federal Reserve and U.S. Treasury have consistently stated that the banking system is strong. Capital ratios of large banks have more than doubled since the Great Financial Crisis.

More than a decade of real-life experience has demonstrated that banks have adequate capital to withstand significant economic shocks. And the most recent stress test results confirmed that the banking system is safe and well-capitalized.

The verdict couldn’t be more obvious.

Basel III is a solution in search of a problem.

And it will create far more problems than it ever solves.

For the sake of homeownership and fairness for families, MBA is fighting this proposal on every front, including my testimony in the U.S. House of Representatives last month, and we won’t rest until we win!

FSOC SIFI

Basel III is bad enough on its own.

Yet Washington is simultaneously pushing another terrible idea that will compound the pain.

The Financial Stability Oversight Council is threatening to designate non-banks as systemically important, and therefore subjecting them to even greater regulatory scrutiny.

Put another way, they want to strangle IMBs with endless red tape.

Once again, the result will be fewer businesses lending to fewer borrowers, leading to less homeownership for those who need it.

A policy of this magnitude deserves the strongest possible justification. Yet FSOC provided precisely none.

It gave no proof that non-banks are systemically important.

It just says so, as if the assertion is proof enough.

It’s not. Not even close.

At the same time, like the FDIC, OCC, and the Fed on Basel, it is proposing to eliminate cost-benefit analysis as part of the designation framework process for non- banks.

That’s astounding.

If you’re going to subject non-banks to an avalanche of new regulations,

you better know the damage it will do.

MBA vehemently opposes designating non-banks as systemically risky, the same as we oppose the higher capital requirements of Basel III. They are both unwise, unnecessary, and utterly unjustified.

The MBA has always supported prudent policy and smart regulation. What we face in these two cases is neither.

It’s foolish. It’s dangerous.

And it’s likely to hurt millions of people.

Yet what’s most astounding to me is that regulators think Basel III and non-bank designation complement each other.

One top financial regulator said exactly that a few weeks ago.

He declared, that there should be, and I quote, “appropriately strong capital requirements for [large banks], complemented by greater transparency, stronger oversight and appropriate prudential requirements for non-banks.”

He went on to call this an “effective and balanced way to enhance the stability of the entire financial system.”

He might as well have said, “The beatings will continue until morale improves.” That’s what’s happening.

Mortgage lenders and consumers are already struggling with the highest interest rates in a generation.

In early October, 10 year yields reached the highest levels in 15 years.

Originations have plummeted, forcing painful layoffs and cuts at your companies.

Some of our colleagues have merged, sold, or simply gone out of business.

It’s heartbreaking.

Yet how do regulators respond?

By pushing large banks and non-banks away from mortgage lending and servicing. We can’t take much more of these beatings.

And no, morale is not improving. MBA is fighting these foolish ideas tooth and nail.

And I want you to know what we’re saying to regulators, lawmakers in Congress, and White House officials.

We’re telling them no one’s going to be left.

Seriously. If large banks and non-banks are driven from mortgage lending, who’s going to do it?

Who’s going to give that first-time homebuyer a loan?

Who’s going to help the low-income family that doesn’t have generational wealth? Who’s going to help Black and Brown Americans overcome the legacy of discrimination and build their own American Dream?

The answer is no one – and that’s unjust. The MBA will not let this happen.

We will fight for you and every American. And yes, we plan to WIN!

We were made for moments like this.

We love nothing more than taking on the biggest fights and getting results.

We proved it in the pandemic when we delivered for you in countless ways.

We proved it again over the last year, by defeating the Adverse Market Refinance Fee and DTI-based Loan Level Price Adjustments.

And while this fight is even bigger, we’re shifting into overdrive.

The MBA is building diverse coalitions to take your message nationwide.

We’re partnering with the NAACP and the Urban League to make clear that the Basel proposal will move the cause of equity in the wrong direction.

And we’re fostering unprecedented collaboration with other industries and associations.

Every day, we talk to the decision-makers at the White House and leaders in Congress.

And I can already report that there’s broad and bipartisan agreement that change is needed.

We’ll continue to speak out, and if anything, we’ll only get louder in the days ahead. Policymakers know we speak for you, which is why they listen.

But given what’s at stake, we need you to speak out, too.

Policymakers don’t just need to hear just from us right now.

They need to hear directly from you.

In the past, we’ve asked you to join the Mortgage Action Alliance and support MORPAC.

Of course, we still want you to do those things. But today, I’m calling on you to go a step further. Call your representative. Call your senators.

Warn them about the disaster in the making.

Tell them who’s going to get hurt – namely, the least fortunate and most vulnerable among your customers.

Raise your voice, early and often.

And consider submitting your own formal comment on Basel III.

Comments are due by November 30th, and regulators need to hear from you about the massive unintended consequences.

The MBA is happy to help you navigate that process – just let us know.

And while comments to FSOC on non-bank designation are already closed, we’re happy to help you make a compelling case to your elected officials.

Your voice matters in this moment.

And your membership matters more than ever before.

With your continued partnership, we can defeat these threats.

And if we keep standing together and speaking as one, we’ll come through this difficult time.

We won’t just survive.

We’ll rise by helping more Americans thrive – because that’s what you always do.

Thank you for being here, and for being part of the MBA.

Most of all: Thank you for all you’ve done, and all you’ll do in the days ahead.

Welcome back to MBA Annual!

Are Higher Mortgage Rates Here To Stay?

Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):  

That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.   

How Higher Mortgage Rates Impact You  

There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.  

Urban Institute explains how this is impacting buyers and sellers right now: 

When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”

 Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy

Where Will Mortgage Rates Go from Here? 

 If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.  

Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.  

The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states

“If you’re in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”

Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now. 

Bottom Line

The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.

How Buying a Multi-Generational Home Helps with Affordability Today

In today’s world of rising housing costs, many buyers are looking for ways to still be able to buy a home. Some of them have found a solution in multi-generational living.

Multi-generational living is when two or more adult generations live together under one roof. This includes siblings, parents, or even grandparents. Here’s an in-depth look at why more buyers are choosing this option today, so you can see if it may be right for you too.

Reasons To Buy a Multi-Generational Home

According to a recent study by the National Association of Realtors (NAR), the top two reasons people are opting for multi-generational homes today have to do with affordability (see graph below):

Cost Savings: About 28% of first-time buyers and 11% of repeat buyers are deciding on a multi-generational home to save on costs. By pooling their resources, households can share the financial responsibilities like mortgage payments, utilities, property taxes, and maintenance, to make homeownership more affordable. This is especially helpful for first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.

More Space: Another 28% of first-time buyers and 18% of repeat buyers are doing it because they want a larger home they couldn’t afford on their own. For some of the repeat buyers who listed this as a main motivator, it could be because they find themselves taking care of older parents while also welcoming back young adults who’ve returned to the nest. With everyone chipping in and combining their incomes, suddenly, that big dream home with more space is within reach. As the Triangle Business Journal explains:

Choosing multi-gen living allows people to purchase a home much larger than they could afford on their own by leveraging the combined income, credit and a down payment of those that they will be occupying the home with.”

Lean on an Expert

If you’re interested in this too, partner with a local real estate agent. Finding the perfect multi-generational home isn’t as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs that should be considered.

You’ve got to make sure everyone has their own space, find room for shared household time, and possibly even create adaptable areas for older relatives. It’s a puzzle, and the pieces need to fit just right. Your real estate agent has the expertise and local knowledge to help you find that home where everyone can be comfortable without breaking the bank. As MoneyGeek.com puts it:

“Having a good multigenerational property can improve the prospects of success when living with loved ones. A multigenerational home should fit the specific needs of most family members regardless of age or health. Speaking to a real-estate agent can help you gain clarity and locate a fit.”

Bottom Line

Buying a multi-generational home can be a smart way to tackle some of today’s affordability challenges. When you team up to share expenses, you can make your dream of homeownership more attainable. If this sounds like an option for you and your loved ones, let’s connect to help you find a home that’s the perfect fit.

Growing Your Net Worth with Homeownership

Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.

One of the many reasons to buy a home is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values are rising right now. According to Zillow:

“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”

Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.

Here’s a look at some data to see how much owning a home can really make a difference in your life.

Household Net Worth Is Rising

Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):

For many of those people, the rising value of their home plays a big part in that.

Owning a Home Helps You Achieve Financial Success

You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):

The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.

Bottom Line

One of the biggest benefits of owning a home is that it can provide an avenue to grow your net worth. Let’s connect so you can start investing in homeownership.

The Latest Expert Forecasts for Home Prices in 2023

Are you thinking about making a move? If so, all the speculation that home prices would crash this year may have you feeling a bit on edge about your decision. Let the data and the experts reassure you. Prices aren’t in a downward spiral and will actually finish the year strong.

Even though you may have heard talk that prices would drop 5, 10, or even 20% this year, that hasn’t happened. The big reason why is the supply of homes for sale is too low. There are just more buyers looking to buy than homes available, and that’s kept prices from falling.

To prove this year wasn’t a bust for home prices, let’s look at the latest 2023 forecast from a number of experts.

Most Experts Project Home Prices Will Net Positive this Year

The general consensus from industry experts is that home price appreciation will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:

As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.

If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The projection from the National Association of Realtors (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3% positive growth for the year.

If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the Home Price Expectation Survey (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average from all 100 of those experts is 3.3% price growth for the year.

If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3% appreciation is a completely different story than prices falling.

Bottom Line

If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in our local area, let’s connect.

Are Grandparents Moving To Be Closer to Their Grandkids?

During the pandemic, many people distanced themselves from their loved ones for health reasons. Grandparents were told to stay away from their grandkids, especially as schools started to open. That’s because it would have been risky to visit with their grandchildren who may have gotten sick from school.

Now that the pandemic has passed, many grandparents want more than ever to be near their grandchildren again to make up for that lost time. But how are they getting that “Grandparent Wish?” The data tells us many are moving to make sure they’re getting more quality time.

Grandparents Are Moving To Be Near Loved Ones

Recent data from the National Association of Realtors (NAR) shows people between the ages of 55 and 74 are moving farther (more than 100 miles) than any other age group (see graph below):

The average age of grandparents in the U.S. is 67 years. The logical leap is that at least some of the people who are moving the furthest are grandparents. But what’s causing them to move so far?

The same report from NAR shows the top reason people move is to be closer to loved ones (see graph below):

Based on this data, it’s fair to say many grandparents are getting their wish of more quality time with their grandchildren by moving to be closer to them. And after experiencing isolation and loneliness during the COVID pandemic, that’s an especially good thing.

If you’re a grandparent, you know how important your grandchildren are. And you may be willing to sell and move just to be closer by. As Vance Cariaga, a journalist at Go Bank Ratesexplains:

“Never underestimate the power of grandchildren – especially when it comes to lifestyle and financial decisions. Recent data shows that many baby boomers are relocating further away from home than they used to so they can be closer to their grandbabies.

Bottom Line

The data shows grandparents are moving further to be near their grandchildren. If you have grandchildren of your own, maybe you can relate. When you decide it’s time to be closer to your loved ones, let’s connect.

Key Skills You Need Your Listing Agent To Have

Selling your house is a big decision. And that can make it feel both exciting and a little bit nerve-wracking. But the key to a successful sale is finding the perfect listing agent to work with you throughout the process. A listing agent, also known as a seller’s agent, helps market and sell your house while advocating for you every step of the way.

But, how do you know you’ve found the perfect match in an agent? Here are three key skills you’ll want your listing agent to have.

They Price Your House Based on the Latest Data

While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean it’ll sit on the market longer because the higher price is actually deterring buyers.

Instead, you want to pick an agent who’s going to have an open conversation about how they think you should price your house and why. A great agent will base their pricing strategy on solid data. They won’t throw out a number just to win your listing. Instead, they’ll show you the facts, explain their pricing strategy, and make sure you’re on the same page. As NerdWallet explains:

“An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.”

They’re a Great Negotiator

The home-selling process can be emotional, especially if you’ve been in your house for a long time. You’re connected to it and have a lot of memories there. This can make the negotiation process harder. That’s where a trusted professional comes in.

A skilled listing agent will be calm under pressure and will be your point-person in all of those conversations. Their experience in handling the back-and-forth gives you with the peace of mind that you’ve got someone on your side who’s got your best interests in mind throughout this journey.

They’re a Skilled Problem Solver

At the heart of it all, a listing agent’s main priority is to get your house sold. A great agent never loses sight of that goal and will help you prioritize your needs above all else. If they identify any necessary steps you need to take, they’ll be open with you about it. Their commitment to your success means they’ll work with you to address any potential roadblocks and find creative solutions to anything that pops up along the way.

BankRate explains it like this:

“Just as important as the knowledge and experience agents bring is their ability to guide you smoothly through the process. Above all, go with an agent you trust and will feel comfortable with. . .”

Bottom Line

Whether you’re a first-time seller or you’ve been through selling a house before, a great listing agent is the key to success. Let’s connect so you have a skilled local expert by your side to guide you through every step of the process.

Smart home tech: Which smart locks are best for security?

BY BRANDON DOYLE
January 15, 2021
Inman News
CMW Modified this article for clarity and to remove 2021 prices.

 A smart lock can offer homeowners security, convenience, and peace of mind. Here’s how to find the best (and most compatible) smart lock in a sea of options — plus a few tips on keeping your home extra secure.

It’s been a year since we first compared Schlage to Kwikset, and we’ve gone on to test several different locks sent to us from various manufacturers. We documented our installation process and tested them in real-world environments for about six months, noting what worked well and any issues we had, like jamming. This week, we’ll discuss the locks we tested — plus a few tips on keeping your home safe.

The Locks:

August Lock (4th Generation): Wi-Fi-based, only replaces the interior portion of the lock. 

Yale Assure Lever Lock: Modules are available for Bluetooth, Wi-Fi, Z-Wave Plus, and Zigbee. It’s the only lever lock we tested. Deadbolt versions are available in a variety of options.

Kwikset 916: Available with Z-Wave Plus or Zigbee, this version replaces the deadbolt, but other options are available for lever locks or only to replace the interior portion.

Eufy Bluetooth Smart Lock: This lock uses Bluetooth (Wi-Fi version coming soon), replaces the deadbolt, and includes a fingerprint scanner.

Lockly Vision: Uses Wi-Fi, comes with its own hub, replaces the entire deadbolt, and includes a fingerprint scanner and video doorbell functionality. Other versions without a camera and different door or lock configurations are available.

GateLabs: This also uses Wi-Fi and replaces the entire deadbolt. It includes a built-in camera but doesn’t integrate with other devices now.

Wyze Lock: This lock is Wi-Fi-based and only replaces the interior portion of the lock.

1. Make front door access secure and convenient

A smart lock can give homeowners peace of mind, security, and convenience over home access. It also means no more hiding keys under the mat or worrying if you locked the door before you headed out. You must simply control the lock and monitor every entry and exit right from your phone. When considering a smart lock, there are several features to examine:

Retrofit vs. replacement.

You first need to decide if you want a retrofit lock (only replaces the existing deadbolt from the inside, which means you can keep your current keys!) or one that requires full deadbolt replacement. For apartment dwellers and renters, retrofit locks like the August Wi-Fi Smart Lock (also consider Wyze Lock or Kwisket Convert) are perfect, as they give you all the perks of a smart lock while still allowing landlords or maintenance crews to enter with their existing keys.

If you own your home, it may be worth checking out a full replacement deadbolt with an integrated keypad. While these require a deadbolt replacement, keypad locks provide a minimalist solution with all the same great features. You can easily distribute temporary PIN codes or access for family, friends, guests, and service providers.

Bluetooth, Zigbee, Z-Wave or Wi-Fi connectivity

If you want to control your lock remotely (if you’re traveling or running a vacation rental property), you should get a Wi-Fi-enabled lock, or one connected via a hub. This will allow you to unlock, lock, check the door status, and be notified of any activity from your phone from anywhere in the world.

Wi-Fi connection will also let you integrate your lock with existing security systems, hosting platforms (e.g., Airbnb), and voice assistants. If you only plan to operate the lock locally with your phone — such as from within your house, with an external keypad, or with auto-unlock upon arrival — then you can opt for Bluetooth only.  Compatibility As mentioned above, Wi-Fi connectivity can let you link your lock with other devices and systems. But do your homework and ensure your lock of choice connects with the platforms you already use, as not all of them have every integration available.

Compatibility

As mentioned above, Wi-Fi connectivity can let you link your lock with other devices and systems. But do your homework and ensure your lock of choice connects with the platforms you already use, as not all of them have every integration available. 

Design

From push buttons to touchpads and from oil-rubbed bronze to satin nickel, smart locks come in all shapes, sizes, and finishes — so make sure it fits your overall home aesthetic. Design is important to lock makers too!

2. Secure access inside your home

People typically think of outfitting only exterior doors with smart locks, but interior doors can be upgraded too. From basements and home offices to spare rooms for guests, interior smart locks like the Yale Assure Lever (which has a keypad) can provide extra security, convenience, and privacy within the home. 

3. Keep an eye on everything — even while away

If you’re nervous about leaving your home unattended while away (either on a short or long-term trip), be sure to get a connected smart lock that offers an activity feed. You can see when a user locks or unlocks your door or when a new user’s entry code is created. You can also create a unique entry code for visitors or just monitor who’s coming and going.

4. Enable hands-free access

If you’re always juggling groceries or want to encourage a more contactless lifestyle this season, consider a smart lock that doesn’t require hands-on operation. For example, many smart locks have an auto-unlock feature that intuitively unlocks the door when you approach it without having to reach for your phone or keys.

You can also control them with your voice, integrating the lock with Amazon Alexa, Siri, or Google Assistant so that you can lock, unlock (requires an extra PIN code), or check the lock status with simple vocal commands. 

5. Consider how to safeguard items and areas in and around your home.

It’s not just doors that need to be secured! From alcohol cabinets to cleaning supplies, home office valuables to package deliveries, look for ways to protect items in and around the home as well. For example, the Yale Smart Cabinet Lock is designed for cabinets and drawers and can help keep children and guests away from medicine, liquor, and other sensitive items. It’s a small device (about the size of an Air Pods case) that can turn any cabinet or drawer into a locker. It mounts on the inside, making it invisible from the outside.

The Yale Smart Delivery Box is an external, non-entry way to protect packages from theft and harsh weather — perfect for the influx of deliveries that may be arriving throughout the year. These also integrate with voice assistants for hands-free operation.