Cooking, caroling, and…closing on a new home? Real estate pros share what buyers can expect from the process – and the current market – when purchasing a new place before 2023.

From traveling to gathering with family to hosting friends at a new home for the very first time, the holiday season can be a whirlwind. But the schedule of celebrations can be even more complicated for someone planning to search for – and purchase – a home this time of year.

2022 has seen shifting trends in the housing market, placing a bit more power back in the hands of buyers. While competition for homes is still high, the days of fierce bidding wars and little-to-no inventory are in the rearview mirror for some areas.

Looking to buy a home before ringing in the New Year? Consider these recommended tips from experienced RE/MAX agents.

Work with qualified professionals

Working with a reputable, full-time real estate agent can help alleviate much of the stress of the homebuying process – in any market or season.

“Talk with an experienced agent who knows the market, knows your price point, and knows what to offer. What is it going to take to win in this specific area?” says Angelica Olmsted, an agent with RE/MAX Professionals in Denver, Colorado. “We still have some nooks throughout Denver that are very competitive. And if your agent doesn’t have their finger on the pulse right now, that could hurt your homebuying process in the long run.”

Because buying a home requires trust and constant communication among everyone involved, it’s wise to find a highly compatible agent.

“Find a REALTOR® you can trust and who understands your goals. You can interview several or get a referral from someone who has gone through the process and had a good experience,” says Cheryl Leatherwood, an agent with RE/MAX First in Baton Rouge, Louisiana. “Let your REALTOR guide you on the steps needed to make your homebuying process as smooth as possible.”

She adds, “Before you shop for your new home, know the price range you’re most comfortable being in, and know what that means in regard to the down payment, closing costs and monthly payments.”

Homebuying and financing often go hand in hand. Olmsted and Leatherwood both recommend contacting a mortgage broker or lender as early as possible to set realistic expectations for the home search.

“Talking to a lender and understanding the fluctuation with interest rates right now is also really important because we are seeing those change day to day,” says Olmsted, adding that having both a reliable agent and lender can be especially helpful in a market like this.

Understand market conditions and annual patterns

In many locales, the years-long seller’s market has begun to balance in recent months. This means current homebuyers and sellers are facing drastically different – and for some, brand new – market conditions. But in addition to overarching market trends, seasonal patterns also pop up annually.

“During the holidays, there’s typically less inventory available. It’s a time where moving is more of a need because of an upcoming life event, like a job change. It’s not as popular of a time to move simply because you want a bigger house – it’s more of a time of necessity,” Olmsted observes.

She points out that the recent rise in interest rates may be preventing some buyers from entering the market, possibly opening up more inventory for those who do intend on buying soon.

“I think with the recent increase in interest rates, fewer buyers can be a good thing, as it means less competition,” she continues. “The interest rates can really work in your favor because fewer people are out there competing for the same home. What’s a con for one person can be a pro for another.”

Leatherwood, too, has seen a tremendous market shift in her locale – and shares how the impacts on sellers are affecting buyers.

“Current market conditions are having a tremendous impact on home sales. Sellers are having to rethink their strategy and their expectations as we have quickly shifted from a complete seller’s market to a more balanced market,” Leatherwood says. “The real estate market will remain strong – but we are in a situation where sellers are offering more concessions to attract buyers.”

Prepare for timeline flexibilities

Most people are busy during the holiday season – and that includes those who work in lending, inspecting, repairing, and moving services, too. When buying a home toward the end of the year, buyers can expect timelines to potentially be rushed or elongated. Either way, national holidays and annual business closures could influence the timing of the purchase and move.

“You have to account for holidays in your deadlines,” Olmsted says. “A process that could have been closed in three weeks can turn into four weeks just because of business closures. Try to be flexible and realistic when it comes to those dates and deadlines.”

During the holiday season, it’s not uncommon for buyers and sellers to push off the closing date or enact an arrangement where the seller rents their house from the new buyer in order to move after the holidays have ended.

“Sellers may want a longer closing date so as not to have to move during the holidays. They are motivated to sell if they have a home on the market at this time of year, however they may want to push off physically moving for a few weeks,” Leatherwood explains. “This is a time for buyer’s agents to have conversations not only with their buyers, but also with listing agents to create an arrangement that works for everyone.”

Plan ahead for the big move

Once buyers have locked down a home, they can take steps right away to prepare for an upcoming move. Once a date is set, contact a moving company ASAP to get on their schedule. If it’s during the holiday season, there may be less flexibility with days – so it’s best to be aware in advance. And if the moving date is right after the holiday season, securing movers is one task off the checklist.

Plus, a benefit to buying a home during the holiday season is the great deals sometimes found on home goods, furniture, appliances, and more.

Ultimately, there can be advantages to buying and selling during any season – including the end-of-year holidays – whether it’s a potential for more inventory, less competition, or motivation to unpack in time to host an upcoming meal with loved ones. For some, reaching the milestone of homeownership may just be at the top of their holiday wish list.

“If someone is motivated to purchase or sell, they are still going to make decisions based on their long-term real estate goals,” Leatherwood says. “They won’t use the holidays as an excuse to not move forward in a life-changing decision.”

Whether you’re looking for a yard for a pet or bigger closets for storage, buying a home could offer more flexibility than renting – and it can be a long-term investment. Are you ready to be a homeowner?

With the housing market balancing in many places, many people are finding that now is a great time to purchase a property of their own. Renters looking to buy are usually in the pursuit of more living space, creative freedom to decorate, and ownership of an asset that can appreciate in value over time.

Renters, are you tired of spending money each month to pay someone else’s mortgage? It may be time to consider buying a home. Here are the signs to look for.

You need more square footage

Upsizing is a common reason renters venture toward homeownership. With more heads under one roof – from children to aging parents to pets and more – an extra bedroom, in-law suite, or garage space can go from being a want to a need. Whether you find a place that has everything you want or a fixer-upper that can be turned into your dream house, owning property offers the potential of adding more space.

You’re looking for outdoor space

Having access to the outdoors – especially for those renting an apartment – has become an increasingly more important factor to prospective homebuyers. This can be especially true if you welcomed a new pet into your life recently.

The options for your outdoor spaces are much greater when you own the property, whether you want to add a fence around the yard for the dog, put in a swimming pool, or lay out a patio for entertaining guests.

You want the flexibility to customize your home

One of the many luxuries of owning a home is having the freedom to do what you please with your space. Oftentimes when renting, tenants are unable to paint walls, drill holes, upgrade aspects of the kitchen, and more. Each household functions differently, so it can be comforting to live in a space custom-tailored to your needs. If you’re handy with DIY projects or can hire professionals, your options for making a new space feel like home are endless.

You’ve saved up for a down payment

Many people start the homebuying process once they have saved up enough money for a down payment. With a budget in mind, check out available financing options (like first-time homebuyer or military housing grants) that may help determine how much you can afford.

The down payment isn’t the only cost associated with buying a home. Don’t forget to save up for additional fees associated with the process, including closing costs, a home inspection and other potential service expenses. When the time comes that you’re ready to put in an offer on a home, you’ll already have these funds set aside.

You’ve saved for maintenance, emergencies and repairs

Owning a home inherently comes with more responsibility than renting. When buying a home, it’s helpful to have money set aside for necessary repairs and unexpected emergencies. Being financially prepared ahead of time will make the inconvenience of a things like a broken appliance or leaky roof more manageable.

You’re looking for an investment (financial and emotional)

If you’re tired of renegotiating terms, paying higher rent, or moving each time your lease expires, then purchasing a home is a great solution. But in addition to peace of mind, owning a home can pose long-term financial benefits, too.

Likely the largest financial transaction a person will make in their lifetime, a home is an investment that may, potentially, help you create generational wealth. Best of all, the money you pay each month to a landlord can be used instead to pay down your own mortgage.

If you’re done with renting and ready to buy a home, call me to help you through the process.

‘Tis the season for snow boots – and the mess they trail inside. Prepare the interior of your home now for wintry days ahead.

Have you checked the forecast? Winter is almost here – and some places have already received their first snowfall of the season!

For homeowners in chillier climates, now’s the time to prepare for the challenges of winter weather. In addition to turning off outdoor waterlines and stocking up on shovels and sand, it’s important to get the interior of the home ready for frosty temps, too.

Consider these checklist items to help prepare the inside of your home to withstand the colder months – and run smoothly throughout them.

1. Stock the entryway with winter gear

If you live in an area that experiences the harsh weather of the season, it’s officially time to remove summer items from the entryway and replace them with more insulated options. Store away warm weather shoes like sandals and bring out the boots and slippers. In bins or on hooks, find convenient space to store coats, mittens, and hats.

Invest in plastic or rubber shoe trays for each entrance to prevent dragging snow into the house. Some people even opt for a boot brush mat outside the door to wipe off shoes before stepping inside.

2. Make sure nothing is touching the heater

Redecorated recently? Whether the answer is yes or no, furniture can scooch around throughout the year with use. To prevent risk of damage or fire, make sure items like furniture, blankets, or drapes aren’t touching the heating system, including baseboards or a radiator.

The same awareness goes for candles. Lighting a candle is a great way to make a room feel cozy on a winter day, but be cautious when placing them throughout the house. Put them in exposed areas situated far from notoriously flammable items like drapes and curtains, holiday decorations, and more.

3. Switch out linens for warmer options

If your house runs cold, try swapping out lighter bedding for toastier options, including flannel sheets or a more insulated comforter. Also consider adding a few throw blankets in common seating areas to make evenings more comfortable.

4. Organize the garage for indoor parking

Home to yard supplies, sports equipment and outdoor recreation gear, the garage can get messy in the warmer months when people tend to park outdoors more frequently. Take time now to organize the garage, sweep the floor, and make room for a parked car. This could save you from the trouble of windshield scraping when overnight frosts and snowstorms arrive.

5. Reverse ceiling fans

Did you know the direction a ceiling fan’s blades spin determines whether it pulls air up or pushes air down? This little fact can help cut costs on energy bills throughout the year.

In the summer months, it’s best to have the fan run counterclockwise, blowing air down to create a cooling effect. And in the winter months, it’s best to have the fan run clockwise, redistributing hot air throughout the room. Figure out which way you currently have it running by turning off the fan, standing underneath (looking upward) and having someone else switch the fan back on. Pay attention to the first few revolutions.

Then, to change the direction of the blades, turn off the fan (wait for a complete stop!) and then flip the switch that is often found on either the motor housing or the base.

6. Clean up the fireplace

Whether you have a wood-burning or gas fireplace, make sure it’s in good shape prior to using it.

For a gas fireplace, ensure you have a sufficient supply of propane and, while the fireplace is off, clean the vent and glass panel of any dust and buildup. For a wood-burning fireplace, have the chimney inspected by a professional chimney inspector and hire a professional chimney sweep. These annual services will help keep your fireplace in pristine condition and safe to use.

Spending the first winter in your new home? Check out tips for preparing the exterior of the property for the snowy season ahead.

Was Monday’s snow your first experience with Portland’s weird weather? Plan ahead to get your new home ready for winter.

The winter months are right around the corner – and in some locales, winter weather is already here. It’s time to make sure your home is ready to stand up to the freezing temperatures on the way.

Will this be the first winter spent in your new home? If so, consider these steps to ensure the property is protected and prepared for the upcoming season.

1. Hire a professional to conduct an in-home energy audit

Conducting an energy audit may save you a few dollars off your electric bill in the winter months. Hire a professional to locate air leaks in windows and doors and identify other places to save on energy costs.

If you’re already aware of drafts in your home, applying weather stripping or caulk – or even putting a draft-stopping pillow in place – are relatively easy DIY fixes. As a bonus, you’ll likely notice a difference in the summer months, too, when better sealed areas trap air-conditioning.

2. Prep the fireplace for use

If your home has a fireplace, whether gas-powered or wood-burning, make sure it’s ready to use so you can safely enjoy its toasty benefits on cold days.

With a gas fireplace, start the winter with a sufficient supply of propane. And, make sure to clean the vent and glass panel of any debris (while the fireplace is off, of course).

With a wood-burning fireplace, have the chimney inspected by a professional chimney inspector to prevent the possibility of a house fire or carbon monoxide buildup in the home. Hire a professional chimney sweep, too, to spruce up a charred firebox and remove creosote buildup. Take advantage of still-temperate days to start chopping or purchasing wood and storing it in a cool, dry place.

Now is also a great time to test smoke and carbon monoxide detectors inside the home and replace batteries where necessary.

3. Drain and cap outdoor water pipes

When below-freezing temperatures are on the horizon, it’s time to drain any outdoor water lines (like a hose or sprinkler system) and turn them off for the season. If leftover water freezes inside pipes, you run the risk of pipes bursting and causing catastrophic plumbing issues and damage.

4. Gather the right tools for snow removal

If you live in an area where winter storms are common, make sure you own a sturdy snow shovel to help clear the driveway and surrounding sidewalks. A bag of sidewalk salt or sand are seasonal staples to keep on hand to melt ice.

If you recently moved to a new climate – or just need a refresher – check out local snow removal regulations that vary town by town and state by state.

While preparing for snow maintenance outside the home, pick up necessary tools for the car too, including a windshield scraper, freeze-proof windshield wiper fluid, and essential supplies in case of emergency, such as a blanket and flashlight.

If you’re a homeowner, odds are your equity has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. Home equity builds over time and can help you achieve certain goals. According to the latest Equity Insights Report from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.

As you weigh your options, especially in the face of inflation and talk of a recession, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much home equity you have and advise you on some of the ways you can use it.  Here are a few examples.

1. Buy a Home That Fits Your Needs

If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. 

If you want to upgrade your house, you can put your equity toward a down payment on the home of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next home.

2. Reinvest in Your Current House

According to a recent survey from Point, 39% of homeowners would invest in home improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet.

Home improvement projects allow you to customize your home to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal to future buyers than others. For example, a report from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell.

3. Pursue Your Personal Goals

In addition to making a move or updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.

Bottom Line

Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.

Each year, homeowners planning to make a move are faced with a decision: sell their house during the holidays or wait. And others who have already listed their homes may think about removing their listings and waiting until the new year to go back on the market.

The truth is many buyers want to purchase a home for the holidays, and your house might be just what they’re looking for. Here are five great reasons you shouldn’t wait to sell your house.

1. While the supply of homes for sale has increased this year, there still aren’t enough homes on the market to keep up with buyer demand. As Nadia Evangelou, Senior Economist & Director of Forecasting at the National Association of Realtors (NAR), explains:

“There’s still this gap between demand and supply because we were underbuilding for many years. . . . So now we see demand is slowing, but it still outpaces supply.”

2. Serious homebuyers are out looking right now. Millennials are driving homebuying demand today, and many are eager to make a purchase. Mark Fleming, Chief Economist at First American, explains:

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

3. The desire to own a home doesn’t stop during the holidays. In fact, homes decorated for the holidays appeal to many buyers. Plus, purchasers who look for homes during the holidays are ready to buy.

4. You can restrict the showings in your house to days and times that are most convenient for you. That can help you minimize disruptions, which is especially important this time of year.

5. Rents have skyrocketed in recent years. And, many buyers are looking to escape rising rents and avoid falling into the rental trap for another year. As an article from Zillow says:

“Over the next 12 months, rents are expected to grow more than inflation, the stock market and home values.”

Your home could be their ticket to leaving renting behind for good.

Bottom Line

There are still many reasons it makes sense to list your house during the holiday season. Let’s connect to determine if selling now is your best move.

With the rapid shift that’s happened in the housing market this year, some people are raising concerns that we’re destined for a repeat of the crash we saw in 2008. But in truth, there are many key differences between what’s happening today and the bubble in the early 2000s.

One of the reasons this isn’t like the last time is the number of foreclosures in the market is much lower now. Here’s a look at why there won’t be a wave of foreclosures flooding the market.

Not as Many Homeowners Are in Trouble This Time

After the last housing crash, over nine million households lost their homes due to a foreclosure, short sale, or because they gave it back to the bank. This was, in large part, because of more relaxed lending standards where people could take out mortgages they ultimately couldn’t afford. Those lending practices led to a wave of distressed properties which made their way into the market and caused home values to plummet.

But today, revised lending standards have led to more qualified buyers. As a result, there are fewer homeowners who are behind on their mortgages. As Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association (MBA), says:

“For the second quarter in a row, the mortgage delinquency rate fell to its lowest level since MBA’s survey began in 1979 – declining to 3.45%. Foreclosure starts and loans in the process of foreclosure also dropped in the third quarter to levels further below their historical averages.”

There Have Been Fewer Foreclosures over the Last Two Years

While you may have seen recent stories about the number of foreclosures rising today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The program gave homeowners facing difficulties extra time to get their finances in order and, in many cases, work out a plan with their lender.

With that program, many were concerned it would result in a wave of foreclosures coming to the market. That fear didn’t materialize. Data from the New York Fed shows there are still fewer foreclosures happening today than before the pandemic (see graph below):

That means, while there are more foreclosures now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019.

And most importantly, the number we’re seeing now is still far below the number we saw during the market crash (shown in the red bars in the graph). The big takeaway? Don’t let a headline in the news mislead you. While foreclosures are up year-over-year, historical context is essential to understanding the full picture.

Most Homeowners Have More Than Enough Equity To Sell Their Homes

Many homeowners today have enough equity to sell their homes instead of facing foreclosure. Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home. And if they’ve stayed in their homes even longer, they may have even more equity than they realize. As Ksenia Potapov, Economist at First American, says:

“Homeowners have very high levels of tappable home equity today, providing a cushion to withstand potential price declines, but also preventing housing distress from turning into a foreclosure. . . the result will likely be more of a foreclosure ‘trickle’ than a ‘tsunami.’”

A recent report from ATTOM Data explains it by going even deeper into the numbers:

“Only about 214,800 homeowners were facing possible foreclosure in the second quarter of 2022, or just four-tenths of one percent of the 58.2 million outstanding mortgages in the U.S. Of those facing foreclosure, about 195,400, or 91 percent, had at least some equity built up in their homes.”

Bottom Line

If you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years. If you have questions, let’s connect.

BY CANDACE RAMIREZ
https://www.apartmenttherapy.com/issues-in-homes-from-50s-60s-70s-36996139

If you find yourself swooning over charming old houses when you browse real estate listings, you’re not alone. What’s not to love about a perfectly midcentury modern rambler or a groovy ‘70s conversation pit? Old homes come packed with character, and may be just a few quick updates away from move-in ready. That said, even lovingly cared-for homes can harbor some era-specific issues, so watch out for the following items in case you need to budget for renovations.

The 1950s

Homes from the 1950s are widely coveted for their midcentury-modern appeal. Just remember that these homes are at least 60 years old, so you’ll likely run into a few things that need replacing or repairs. 

Mix-and-match flooring: You may find a mix of tiles, linoleum, and carpet throughout the house. Replace these if they’re worn or damaged. Even if they aren’t, updating to hardwood or tile throughout the entire home can modernize the space and increase your resale value. 

Single-pane windows: If the home has original windows, it may be worth replacing them. If they’re single-pane, they won’t be as energy-efficient as modern double-pane options.

They may also contain lead paint, which can pose risks to your health. Lastly, newer windows are typically easier to open, close, and clean than their mid-century counterparts. 

Too many walls: 1950s homes tend to have separate, closed-off rooms. Don’t let an outdated floor plan stop you from buying your dream home, though. If you’re a fan of open, airy spaces, consider knocking down unnecessary walls to open up the space and allow more natural light to shine through. 

The 1960s 

Ranch-style homes rose to prominence in the 1960s, often decorated with bright colors and love-it-or-hate-it shag carpets. Now around 50-60 years old, homes of this decade may have these common issues: 

Tar-and-gravel roofs: Popular during the ‘50s and ‘60s, the tar-and-gravel roof was a flat roof style made of asphalt, tar, and gravel. Without regular maintenance, this type of roof can collect mold and moisture, which can penetrate other areas of your home. Think about whether you’re willing to take on the upkeep of a tar-and-gravel roof or if it’s possible to replace it with another style.

Wood panel walls: Not all wood paneled walls are created equally. While many groan at the mention of wood paneling, they’re a staple in ‘60s homes. If you’ve found a home with solid wood walls and they’re in good condition, embrace them. Try decorating them with bright-colored art or painting them a cheery color. If they’re manufactured wood or you just don’t love them, remove them and start fresh. 

Manufactured wood doors: It’s typical for 1960s homes to feature manufactured wood doors as well. You can spot them by their lightweight, hollow feel. Replacing these with doors you love is an easy opportunity to infuse your personality into your home. 

The 1970s

The 1970s ushered in an era of post-and-beam homes, A-frames, and even more ranch-style houses. Now around 40-50 years old, these homes can still be in excellent condition, particularly if lovingly maintained by the previous owners. If you’re eyeing a ‘70s house, consider these potential issues: 

Pea-soup green bathrooms: The 1970s are synonymous with pea-soup green bathrooms. If that’s your cup of tea, I support you, but if not, you may need to update original features like bathtubs, toilets, and sinks for a more present-day look.

Outdated kitchens: Your kitchen may also benefit from a facelift, as ‘70s homes often come with yellow linoleum countertops, faded linoleum floors, and dark wood cabinetry that can make the room feel darker than necessary. 

Popcorn ceilings: Popcorn ceilings didn’t originate in the ‘70s, but they’re prevalent in homes from this decade. They can collect dirt and cigarette smoke and even make the room look smaller than it is. Occasionally, asbestos lurks in them as well, so it’s a good idea to remove them. 

If you find your dream home, don’t let these issues stop you from putting in an offer. Simply use this list to stay informed about the potential renovation and upgrade costs that may arise with older homes. Happy hunting.

Some Highlights

• While there are many financial perks to owning a home, there are also powerful non-financial benefits to consider if you’re thinking about making a move.
• Homeownership allows you to express yourself, gives you greater privacy and comfort, enhances your connection to your community and loved ones, and is an achievement to feel proud of.
• Let’s connect today to discuss all that homeownership has to offer.