The decision to sell a home isn't one to face lightly. Going through with it means undertaking one of the most complex processes you'll ever undertake. Luckily, the help of a real estate expert simplifies things and makes it a lot less stressful. Still, researching the topic is always a good idea.

The more you know, the easier it'll be to make informed choices throughout the "game." Your real estate pro can offer you expert advice, but the final decision is always up to you.

Let's look at some of the most common "rookie mistakes" that can send your sale to the dugout:

1. Rushing Your Agent Pick
   Selecting an agent is one of the most important things you'll do in the course of a sale. Your choice will likely affect every stage of the home sale. How your home is staged, listed, and marketed all come back to your agent — so take time to find an agent you can work well with.
   
   
2. Hiring a Family Member or Friend
   You may have loved ones in the business, and they're sure to offer you a good deal. Still, it's best to find an impartial professional to help you with something this sensitive. It's all too easy to fall into conflict with someone you know about issues like the agent's commission.
   
   
3. Setting the Wrong Price
   Poor pricing can add eighteen months to your sale timeline. Homeowners bring a long, emotional history to price question. On the other hand, a good agent will use knowledge of the local market and trends to find the ideal price: One that helps you reach your profit and timeline goals.
   
   
4. "For Sale By Owner" (FSBO)
   This may be the single biggest mistake sellers can make. It invites all kinds of problems — from buyers seeing you as a target for rough negotiations to paperwork issues, few people are prepared for. It puts legal liability for a whole host of issues directly in your lap, too.
   
   
5. Waiting to Spruce Up the Home
   There are many things you can do, even on a tight budget, to make your property much more appealing to would-be buyers. A quick coat of exterior paint, a new doorknob, and a touch of landscaping supercharge curb appeal. For a bit more, think about adding new kitchen appliances.
   
   
6. Forgetting to Clean and Organize
   Before a home hits the market, it should be thoroughly cleaned. Pressure cleaning the outside is a must. Interior carpets and upholstery should be steam cleaned, especially if you have pets. Start moving items out of the closet and into storage early on to make them seem bigger.
   
   
7. Neglecting to Stage the Home
   When you really want to sell a home fast, staging is your secret weapon. Staging breathes new life into a home even if it has some factors working against it, potentially adding thousands to your selling price. It's more than fresh-baked cookies, though, and is best handled by a pro.
   
   
8. Not Looping In Your Mortgage Lender
   Your current mortgage situation goes a long way toward telling you what your sales goals should be. Only your lender can give you all the details you need about loan payoff and how paying early might affect you. Be wary of early payoff penalties that some lenders require.

It may sound complicated to sell a home, but it doesn't have to be a hassle. A Montague Miller real estate professional who specializes in homes like yours will be a team player throughout the process. Experience is essential! Now, play ball!

After steadily falling over the winter, mortgage rates have started to rise in recent weeks. This is concerning to some potential homebuyers as the combination of higher mortgage rates and higher prices  have made homes less affordable. So, if you're planning to purchase a home this year, you too may be wondering if now's the right time to buy or if you should hold off on your search until rates come back down.

The recent uptick in rates has been driven by what's happening with inflation. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains:

"Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time."

The most recent weekly average 30-year fixed mortgage rate reported  by Freddie Mac is 6.5%. It's the third week in a row that rates have increased and puts them at the highest point they've been this year (see graph below):

Advice for Home Shoppers

If you're thinking about pausing your home search because rates have started to go up again, you may want to reconsider. This could actually be an opportunity to buy the home you've been searching for. According to the MBA, mortgage applications mortgage applications  declined by 13.3% in just one week, so it appears the rise in mortgage rates is leading some potential homebuyers  to pull back on their search for a new home.

So, what does that mean for you? If you stay the course, you'll likely face less competition among other buyers when you're looking for a home. This is a welcome relief in a market that has so few homes for sale.

Bottom Line

Over the last few weeks, mortgage rates have risen. But that doesn't mean you should delay your plans to buy a home. In fact, it could mean the opposite if you want to take advantage of less buyer competition. Let's connect today to explore the options in our local market.

Resources: 

Mortgage Bankers Association (MBA)

Keepingcurrentmatters.com

Freddie Mac 

Summary

• The biggest challenge in the housing market is how few houses there are for sale compared to the number of people who want to buy.
• The number of homes for sale is up from last year but below pre-pandemic numbers, and that means we're still in a sellers' market.
• The housing market needs more homes for sale to meet the demand of today's buyers.
• If you've thought about selling, now's the time to connect with your local Montague Miller real estate professional!

Sources:

Realtor.com

Keepingcurrentmatters.com

No matter how the housing market changes, there are some things about owning a home that never changes—like the personal benefits it can provide. When you own your home, you likely feel a sense of attachment because of the comfort it gives and also because it's a space that's truly yours.

Over the last few years, we've fully embraced the meaning of our homes as we spent more time than ever in them. As a result, the emotional benefits our homes provide have become even more important to us.

As the most recent State of the American Homeowner from Unison puts it:

". . . one thing has stayed the same: the home continues to be of the utmost importance and a place of security and comfort."

The same study from Unison notes:

• 91% of homeowners say they feel secure, stable, or successful owning a home
• 64% of American homeowners say living through a pandemic has made their home more important to them than ever

It's no surprise this study also reveals that homeowners now love their homes even more as our attachments to them have grown:

The National Association of Realtors (NAR) also explains:

"In addition to tangible financial benefits, homeownership brings substantial social benefits for [households], communities, and the country as a whole."

In other words, not only does owning a home build your net worth over time, but it also gives you and your loved ones a place to thrive. And by living near people with shared experiences, homeownership helps you connect with your community and contribute meaningfully.

Bottom Line

Whether you're thinking of buying your first home, moving up to your dream home, or downsizing to something that better fits your changing lifestyle, a local market expert is the key to unlocking a home you can truly fall in love with.

Resources:

National Association of Realtors  NAR.realtor

keepingcurrentmatters.com

Over the past few years, many of us have spent extra time at home—and that means we appreciate the personal design touches that make a house cozy and comfortable more than ever. Some of us have adapted our dwellings in new ways, from creating functional home offices to upgrading the appliances we use most.

But while it's important to make your home your own, it's also smart to think about the long-term impact your renovations could have on its value. Choosing highly-personalized fixtures and finishes can make it harder for future homebuyers to envision themselves in the space. Even if you don't plan to sell your home soon, investing in popular design choices that are likely to stand the test of time will make things easier down the road.

And if you're in the market for a new home, it's wise to keep an eye out for features that might need to be updated soon so you can factor renovation costs into your budget.

We've rounded up six trends that we think will influence interior design in 2023, as well as ideas for how you might incorporate them in your own home. Remember, before taking action, it's always wise to consult with a real estate professional to understand how specific updates and upgrades will affect your property's value in your local market.

1. Separate Kitchen, Dining and Living Areas

For years, home design has been dominated by open-concept floor plans, particularly for kitchen, dining, and living areas. However, as the pandemic forced families to work and study from home, many struggled to find the privacy and separation they needed. As a result, designers report that more families are choosing to bring back kitchen and dining room walls to break up the space and create quieter areas.¹

 That doesn't mean that we're returning to an era of dark and cramped spaces, however. Even as walls make a return, it's important to take care to retain a sense of flow and openness within the home and to prioritize natural light.

If you're buying or building a new home, consider how you will use the space and whether or not an open floor plan will suit your needs. If you already live in a home with an open floor plan and it isn't working for you, try rearranging furniture and strategically placing pieces like bookshelves, room dividers, or rugs to create distinct areas within the home and reduce noise.

2. Nature-Inspired Design

In the past few years, we've seen the "biophilia" trend explode, and there are no signs that it will be any less popular in 2023.² This trend is all about bringing the outside in by adding natural touches throughout your home.

This year, design experts predict that natural, sustainable materials like bamboo, cork, and live-edge wood will lend character without being overwhelming. Wooden kitchen cabinets and islands will become more common in 2023, with white oak and walnut among the most popular choices.^3,4 Wood will also appear in bathroom vanities and shelving and furniture throughout the home.

Colors inspired by nature (think mossy greens and desert tones) will also play into this trend and will blend seamlessly with wood tones. We're also seeing a return to natural stone countertop materials like quartzite, marble, dark leathered granite, and soapstone.^4,5

If you're planning to add new shelving or redo your kitchen, consider turning to these materials to embrace the biophilic look. Or, incorporate elements of the trend by choosing nature-inspired paint colors and adding to your houseplant collection.

Photo by Savant Design Group - More living room ideas

3. Lighting as a Design Feature

Spending more time at home has shown us the importance of having the right lighting for specific tasks and times of the day. As a result, many homeowners are reconsidering the ways they light their homes and using light fixtures to change the usability and mood of their spaces.⁵

In particular, homeowners are rejecting bright, flat overhead lighting and replacing it with lamps and task-specific options. A layered approach to lighting—such as using a combination of under-cabinet, task, and ambient lighting in a kitchen—enables homeowners to tweak the level of light they're using based on the time of day and what they are doing.

In 2023, we expect to see more statement chandeliers, pendants, and wall sconces in a variety of shapes and materials.⁶ Thinking about switching up the lighting in your home? Start by adding floor or table lamps and swapping out fixtures before you invest in rewiring your space. Take note of what works and what doesn't and watch how the light in your home changes throughout the day. You can then use that information to make lighting decisions that require a bigger investment.

Photo by The Brooklyn Studio - Search living room design ideas

4. More Vibrant Color Palettes

After the long dominance of whites and grays, more vibrant colors are coming back as a way to add character and dimension to homes.

This year, warm and earthy neutrals, jewel tones, and shades of red and pink are particularly popular.^7,8 If your style tends toward the subtle, consider options like light, calming greens, blues, and pastels.

Major paint brands have responded to these homeowner preferences with their newest releases. Benjamin Moore's 2023 color of the year, Raspberry Blush, is a lively shade of pinkish coral, while Sherwin William is embracing warm neutrals with Redend Point, a blushing beige.^9,10 Behr's choice of the year, Blank Canvas, is a creamy off-white that's a warmer version of the stark whites that have been trending over the past few years.¹¹

If you're planning to put your home on the market soon, it's better to play on the safer side and avoid extremely bold or bright color choices when it comes to paint or fixed finishes like tile and countertops. Instead, try incorporating pops of color through throw pillows, art, and accessories.

Photo by Touch Interiors by Bronwyn Poole - Discover bedroom design ideas

5. Curved Furniture and Architectural Accents

Goodbye, sharp corners. In 2023, arches and curves lend a sleek feel that draws on classical design and retro trends while remaining modern.^5,8 Rounded corners feel more relaxed and natural than sharp edges, lending more of a sense of flow and comfort to a home.

If you want to incorporate the trend into your new build or remodeling plans, curved kitchen islands and bars and arched alcoves are all good options—or you can take it a step further with arched windows and doorways. You can also carry this trend through to your light fixtures by incorporating a bubble chandelier or globe pendants.

It's easy to embrace this look without renovations, too. Look for a softer feel in furniture, with sofas, chairs, and tables that showcase curved edges. Or, break up your space with an arched folding screen and a circular rug.

Photo by Wilson Lighting - Look for living room pictures

6. Art Deco Revival

Art Deco, the architecture and design style that took hold in the 1920s and '30s, is enjoying a resurgence.¹²

As a style, Art Deco is marked by bold geometry, textures, and colors, as well as an emphasis on art. But the 2023 interpretation of this style is likely to be a bit less splashy than its historical roots. Designers predict that instead of incorporating all of the elements of the style, which could feel overwhelming, homeowners will pick bursts of color or bold accessories to bring some whimsy to their space.

Keep an eye out for vintage mirrors, lamps, or vases that bring a touch of Art Deco glam to your home, or embrace bold colors and fabrics like velvet. Choose pillows and throw blankets in bright colors and geometric patterns to nod to the look without diving in all the way.

Photo by Favreau Design - Browse living room photos

DESIGNED TO SELL

 Are you thinking about remodeling or making significant design changes to your home? Wondering how those changes might impact your future resale value?

 Buyer preferences vary significantly based on your home's neighborhood and price range. We're happy to share our insights on the upgrades that will make it easier (or more difficult!) to sell your home. Give us a call for a free consultation! 

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

 Sources:

1. US News and World Report - https://realestate.usnews.com/real-estate/slideshows/interior-design-trends-for-2023?slide=2
2. Architectural Digest -https://www.architecturaldigest.com/story/design-trends-in-2023

3. Insider -https://www.insider.com/popular-home-decor-trends-for-2023-according-to-experts-2022-

4. Houzz -https://www.houzz.com/magazine/35-home-design-trends-on-the-rise-in-2023-stsetivw-vs~164032473

5. The Spruce -https://www.thespruce.com/2023-design-trends-6743803

6. The Spruce -https://www.thespruce.com/2023-lighting-trends-6891412

7. The Spruce -https://www.thespruce.com/2023-color-trends-6751137

8. Good Housekeeping - https://www.goodhousekeeping.com/home/decorating-ideas/g42084756/interior-design-trends-2023/
9. Benjamin Moore - https://www.benjaminmoore.com/en-us/paint-colors/color/2008-30/raspberry-blush
10. Sherwin Williams - https://www.sherwin-williams.com/content/colorforecast/colormix-2023/color-of-the-year-2023
11. Behr -https://www.behr.com/consumer/inspiration/2023-coty/
12. The Spruce -https://www.thespruce.com/art-deco-trend-for-2023-7092174

Developing a plan and setting attainable goals are two of the biggest ingredients in the process of selling a home successfully. By understanding what steps you need to take, when you need to take them, and where you can look for help along the way, you'll put yourself in a great position to sell a home quickly while maximizing your return on investment.

This step-by-step guide to selling a house is designed to prepare you for the process and help you achieve your goals.

From "For Sale" to Sold: A Step-by-Step Guide to Selling Your Next Home

Step One – Find the Right Real Estate Agent

The first step on our list just might be the most important because finding the right real estate agent will make all the steps that follow so much easier to handle. Remember that you definitely don't have to settle for the first agent you meet unless that agent truly shows that they're the right person to sell your home. Ask around for referrals, interview agents, and find the right agent for your unique needs. 

Step Two – Research the Market and Pick a Price

One of the first things that your agent can help you with is understanding your local real estate market, and picking a price that will help get your home sold. Your agent should offer a comparative market analysis (CMA), which will help you understand what other similar homes in your market are selling for, and set a price that attracts competitive offers.

Step Three – Clean, Clear Out Clutter, and Prepare Your Home for Sale

With a great agent on your side and a fair market price chosen for your home, you'll be ready to prepare your home for potential buyers. This is a great opportunity to start the process of moving out: clear clutter, store personal items, and make your home as attractive as possible for buyers. You'll want to clean every inch of your home, from the basement to the master bedroom. Curb appeal is a big deal, too, so make sure that your yard is looking its best.

Step Four – Market Your Home to the Masses

With your home ready for buyers to visit, it's time to start attracting attention and introducing buyers to what you have to offer. Your real estate agent can help you market your home through social media, online listings, and traditional marketing tools. You can also do your part by spreading the word and letting others know that your home is on the market.

Step Five – Prepare for Multiple Offers

By working with an experienced agent, picking the right price, and marketing your home effectively, you'll set yourself up to receive multiple offers on your home. Make sure that you understand exactly what you're looking for from an offer, so you can negotiate the deal that best matches your needs.

Step Six – Negotiate and Close the Deal

All of the work that you do up to this point leads up to the process of negotiating with the buyer and closing the deal. Work closely with your real estate agent to ensure that all of the key legal details are covered and that you're maximizing the value you receive in return for all of the hard work you've done to sell a home.

No matter where you are in the sales process, remember that there's plenty of help available, both from your real estate agent and from other homeowners you trust. Start by following our step-by-step guide, and you'll already be ahead of the game when you decide to sell a home.

Last year, one factor drove the real estate market more than any other: rising mortgage rates.

In March 2022, the Federal Reserve began a series of interest rate hikes in an effort to pump the brakes on inflation.¹ And while some market sectors have been slow to respond, the housing market has reacted accordingly.

Both demand and price appreciation have tapered, as the primary challenge for homebuyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many buyers and sellers, it should ultimately lead to a more stable and balanced real estate market.

So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While this is one of the more challenging real estate periods to forecast, here's what several industry experts predict will happen to the U.S. housing market in the coming year.

MORTGAGE RATES WILL FLUCTUATE LESS

In 2022, 30-year fixed mortgage rates surged from roughly 3% in January to around 7%. According to Rick Sharga of real estate data company ATTOM, "We've never seen rates double in so short a period."²

This year, economists forecast a less dramatic shift.

In an interview with Bankrate, Nadia Evangelou, senior economist for the National Association of Realtors, shares her vision of three possible mortgage rate scenarios:³

1. Inflation continues to surge, forcing the Fed to repeatedly raise interest rates. In that scenario, she predicts that rates could reach as high as 8.5%.
2. Inflation decelerates and mortgage rates follow suit, averaging 7 to 7.5% for the year.
3. Rising interest rates trigger a recession, which could ultimately lead mortgage rates to drop closer to 5% by the end of the year.

Realtor.com forecasts something similar to scenario #2 above: "Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year's end."⁴ The Mortgage Bankers Association, however, projects something closer to Evangelou's scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5.2% by Q4.⁵

Economists at Fannie Mae fall somewhere in the middle. In a recent press release, they predicted that the U.S. economy will experience a "modest recession" this year.⁶ But in their December Housing Forecast, they project that 30-year fixed mortgage rates will only fall by half a point from an average of 6.5% in Q1 to 6.0% in Q4.⁷

"From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession," said Fannie Mae Chief Economist Doug Duncan.⁶

What does it mean for you?  Even the experts can't say for certain where mortgage rates are headed. Instead of trying to "time the market," focus instead on buying or selling a home when the time is right for you. There are a variety of mortgage options available that can make a home purchase more affordable, including adjustable rates, points, and buydowns—and keep in mind you can always refinance down the road. We'd be happy to refer you to a trusted mortgage professional who can outline your best options.

SALES VOLUME WILL FALL AND INVENTORY WILL RISE

It looks like the home-buying frenzy we experienced in recent years is behind us. While the desire to own a home remains strong, higher mortgage rates have made it unaffordable for a large segment of would-be buyers.

Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and days-on-market, or the time it takes to sell a home. But, there is a wide range when it comes to specifics.

Economists at Fannie Mae forecast that total home sales will fall by around 20% this year before rising again by nearly 15% in 2024.⁷ National Association of Realtors Chief Economist Lawrence Yun projects a less extreme dip of 7% in 2023 with a rebound of 10% next year.⁸

Realtor.com Chief Economist Danielle Hale foresees something in between. "The deceleration in home sales is likely to continue as high home prices and mortgage rates limit the pool of eligible home buyers. We anticipate that existing home sales will decline another 14.1% in 2023." She expects this drop in sales to lead to a nearly 23% increase in inventory levels this year, offering more choices for buyers who have struggled to find a home in the past.⁹

However, given the severe lack of housing supply, even with a double-digit increase, the market is expected to remain relatively tight and below pre-pandemic levels. Hale points out: "It's important to keep historical context in mind. The level of inventory in 2023 is expected to fall roughly 15% short of the 2019 average."⁹

What does it mean for you?  If you've been frustrated by a lack of inventory in the past, 2023 may bring new opportunities for you to find the perfect home. And today's buyers have more negotiating power than they've had in years. Contact us to find out about current and future listings that meet your criteria.

If you're hoping to sell, you may want to act fast; rising inventory levels will mean increased competition. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home's current market value. Reach out to schedule a free consultation.

HOME PRICES WILL REMAIN RELATIVELY STABLE

While some economists expect home prices to fall this year, many expect them to remain fairly stable. "For most parts of the country, home prices are holding steady since available inventory is extremely low," said Yun at a November conference.⁸

Nationally, Yun expects the average median home price to tick up by 1% in 2023, with some markets experiencing greater appreciation and others experiencing declines.⁸ Economists at Fannie Mae offer a similar projection, forecasting a slight decrease in their Home Price Index of about 1.5%, year-over-year.⁷

Other experts foresee a larger fluctuation. Hale expects U.S. home prices to rise by 5.4% this year, while Morgan Stanley is forecasting a 7% drop from the peak in June 2022.^9,10

Still, many economists agree that a housing market crash like the one we experienced in 2008 is highly unlikely. The factors that caused home prices to plunge during the Great Recession—specifically lax lending standards and a surplus of inventory—aren't prevalent in our current market.¹⁰ Therefore, home values are expected to remain comparatively stable.

What does it mean for you?  It can feel scary to buy a home when there's uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we're experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.

And if you're planning to sell this year, you'll want to chart your path carefully to maximize your profits. Contact us for recommendations and to find out what your home could sell for in today's market.

RENT PRICES WILL CONTINUE TO CLIMB

 Affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing could continue to drive "above-average" rent price increases in much of the country.¹¹ The Federal Reserve Bank of Dallas expects year-over-year rental price growth to tick up to 8.4% in May before moderating later in the year.¹²

According to Hale, "U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends."⁹

However, there are signs that the surge in rent prices could be tapering. According to Jay Parsons, head of economics for rental housing software company RealPage, there's some evidence of a slowdown in demand. He predicts that market-rate rents will rise just 3.3% this year. Still, analysts agree that a return to lower pre-pandemic rental prices is unlikely.¹⁰

What does it mean for you?  Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a free consultation to discuss your options.

And if you've ever thought about purchasing a rental property, now may be a perfect time. Call today to get your investment property search started.

WE'RE HERE TO GUIDE YOU

While national real estate forecasts can provide a "big picture" outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood.

If you're considering buying or selling a home in 2023, contact us now to schedule a free consultation. We'll work with you to develop an action plan to meet your real estate goals this year.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Forbes -
   https://www.forbes.com/advisor/investing/fed-funds-rate-history/
2. Bankrate -
   https://www.bankrate.com/mortgages/will-mortgage-rates-go-up-in-december-2022/
3. Bankrate -
   https://www.bankrate.com/real-estate/housing-market-predictions-2023/
4. com -
   https://www.realtor.com/news/trends/2023-the-year-of-the-homebuyer-our-bold-predictions-on-home-prices-mortgage-rates-and-more/
5. Mortgage Bankers Association -
   https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-dec-2022.pdf?sfvrsn=b584bf7_1
6. Fannie Mae -
   https://www.fanniemae.com/newsroom/fannie-mae-news/economy-still-expected-enter-and-exit-modest-recession-2023
7. Fannie Mae -
   https://www.fanniemae.com/media/45801/display
8. National Association of Realtors -
   https://www.nar.realtor/newsroom/nars-lawrence-yun-predicts-us-home-prices-wont-experience-major-decline-could-possibly-rise-slightly
9. com -
   https://www.realtor.com/research/2023-national-housing-forecast/
10. The New York Times -
    https://www.nytimes.com/2022/11/04/realestate/housing-market-interest-rates.html
11. CNBC -
    https://www.cnbc.com/2022/09/28/how-much-higher-rent-will-go-in-2023-according-to-experts.html
12. Federal Reserve Bank of Dallas -
    https://www.dallasfed.org/research/economics/2022/0816

From summer vacations to winter holidays, it seems each season offers the perfect excuse to put off our to-do list. But be careful, homeowners: neglecting your home's maintenance could put your personal safety—and one of your largest financial investments—at serious risk.

In no time at all, small problems can lead to extensive and expensive repairs. And even if you avoid a catastrophe, those minor issues can still have a big impact. Properties that are not well maintained can lose 10 percent (or more) of their appraised value.¹The good news is, by dedicating a few hours each season to properly maintaining your home, you can ensure a safe living environment for you and your family ... and actually increase the value of your home by one percent annually!¹ You just need to know where and how to spend your time.

Use the following checklist as a guide to maintaining your home and lawn throughout the year. It's applicable for all climates, so please share it with friends and family members who you think could benefit, no matter where their home is located.

Winter

While it can be tempting to ignore home maintenance issues in the winter, snow and freezing temperatures can do major damage if left untreated. Follow these steps to ensure your house survives the winter months. 

Inside

• Maintain Heating System
  Check and change filters on your heating system, per the manufacturer's instructions. If you have a boiler, monitor the water level.

• Tune Up Generator
  If you own a portable generator, follow the manufacturer's instructions for proper maintenance. Make sure it's working before you need it, and stock up on supplies like fuel, oil and filters.

• Prevent Frozen Pipes
  Make sure pipes are well insulated, and keep your heat set to a minimum of 55 degrees when you're away. If pipes are prone to freezing, leave faucets dripping slightly overnight or when away from home. You may also want to open cabinet doors beneath sinks to let in heat.

Outside

• Drain and Shut Off Outdoor Faucets
  Before the first freeze, drain and shut off outdoor faucets. Place an insulated cover over exposed faucets, and store hoses for the winter.

• Remove Window Screens
  Removing screens from your windows allows more light in to brighten and warm your home during the dark, cold winter months. Snow can also get trapped between screens and windows, causing damage to window frames and sills.

• Service Snowblower
  Don't wait until the first snowstorm of the season to make sure your snowblower is in good working order. Check the manufacturer's instructions for maintenance or have it serviced by a professional.

• Stock Up on Ice Melt
  Keep plenty of ice melt, or rock salt, on hand in preparation for winter weather. Look for brands that will keep kids and pets safe without doing damage to your walkway or yard.

• Watch Out for Ice Dams
  Ice dams are thick ridges of solid ice that can build up along the eaves of your house. They can do major damage to gutters, shingles and siding. Heated cables installed prior to the first winter storm can help.¹⁴
• Check for Snow Buildup on Trees
  Snow can cause tree limbs to break, which can be especially dangerous if they are near your home. Use a broom to periodically remove excess snow.¹⁵

 Spring

After a long, cold winter, many of us look forward to a fresh start in the spring. Wash away the winter grime, open the windows, and prepare your home for warmer weather and backyard barbecues.

Inside

• Conduct Annual Spring Cleaning
  Be sure to tackle those areas that may have gone neglected—such as your blinds, baseboards and fan blades—as well as appliances, including your refrigerator, dishwasher, oven and range hood. Clear out clutter and clothes you no longer wear, and toss old and expired food and medications.

• Shut Down Heating System
  Depending on the type of heating system you have, you may need to shut your system down when not in use. Check the manufacturer's instructions for proper procedures.

• Tune Up A/C
  If your home has central air conditioning, schedule an annual tune-up with your HVAC technician. If you have a portable or window unit, be sure to follow the manufacturer's instructions for proper maintenance.²

• Check Plumbing
  It's a good idea to periodically check your plumbing to spot any leaks or maintenance issues. Look for evidence of leaks—such as water stains on the ceiling—and check for dripping faucets or running toilets that need to be addressed. Inspect your hot water heater for sediment build up. Check your sump pump (if you have one) to ensure it's working properly.³

• Inspect Smoke Alarm and Carbon Monoxide Detectors
  Check that your smoke and carbon monoxide detectors are functioning properly. Batteries should be replaced every six months, so change them now and again in the fall. Follow the manufacturer's instructions to test your individual devices. And even properly functioning devices should be replaced at least every 10 years, or per the manufacturer's recommendation.⁴

Outside

• Inspect Perimeter of Home
  Walk around your house and look for any signs of damage or wear and tear that should be addressed. Are there cracks in the foundation? Peeling paint? Loose or missing roof shingles? Make a plan to make needed repairs yourself or hire a contractor.

• Clean Home's Exterior
  Wash windows and clean and replace screens if they were removed during the winter months. For the home's facade, it's generally advisable to use the gentlest method that is effective. A simple garden hose will work in most cases.⁵

• Clean Gutters and Downspouts
  Gutters and downspouts should be cleaned at least twice a year. Neglected gutters can cause water damage to a home, so make sure yours are clean and free of debris. If your gutters have screens, you may be able to decrease the frequency of cleanings, but they should still be checked periodically.⁶

• Rake Leaves
  Gently rake your lawn to remove leaves and debris. Too many leaves can cause an excessive layer of thatch, which can damage the roots of your lawn. They can also harbor disease-causing organisms and insects.⁷ However, take care because overly vigorous raking can damage new grass shoots.
  
  
• Seed or Sod Lawn
  If you have bare spots, spring is a good time to seed or lay new sod so you can enjoy a beautiful lawn throughout the remainder of the year. The peak summer heat can be too harsh for a new lawn. If you miss this window, early fall is another good time to plant.⁸ 

• Apply a Pre-Emergent Herbicide
  While a healthy lawn is the best deterrent for weeds, some homeowners choose to use a pre-emergent herbicide in the spring to minimize weeds. When applied at the right time, it can be effective in preventing weeds from germinating. However, a pre-emergent herbicide will also prevent grass seeds from germinating, so only use it if you don't plan to seed or sod in the spring.

• Plant Flowers
  After a long winter, planting annuals and spring perennials is a great way to brighten up your garden. It's also a good time to prune existing flowers and shrubs and remove and compost any dead plants.
  
  
• Mulch Beds
  A layer of fresh mulch helps to suppress weeds, retain moisture and moderate soil temperature. However, be sure to strip away old mulch at least every three years to prevent excessive buildup.⁹
  
  
• Fertilize Lawn
  Depending on your grass type, an application of fertilizer in the spring may help promote new leaf and root growth, keep your lawn healthy, and reduce weeds.¹⁰

• Tune Up Lawn Mower
  Send your lawn mower out for a professional tune-up and to have the blades sharpened before the mowing season starts.¹¹
  
  
• Inspect Sprinkler System
  If you have a sprinkler system, check that it's working properly and make repairs as needed.

• Check the Deck
  If you have a deck or patio, inspect it for signs of damage or deterioration that may have occurred over the winter. Then clean it thoroughly and apply a fresh coat of stain if needed.

• Prepare Pool
  If you own a pool, warmer weather signals the start of pool season. Be sure to follow best practices for your particular pool to ensure proper maintenance and safety.

Summer

Summer is generally the time to relax and enjoy your home, but a little time devoted to maintenance will help ensure it looks great and runs efficiently throughout the season.

Inside

• Adjust Ceiling Fans
  Make sure they are set to run counter-clockwise in the summer to push air down and create a cooling breeze. Utilizing fans instead of your air conditioner, when possible, will help minimize your utility bills.  

• Clean A/C Filters
  Be sure to clean or replace your filters monthly, particularly if you're running your air conditioner often. 

• Clear Dryer Vent
  Help cut down on summer utility bills by cleaning your laundry dryer vent at least once a year. Not only will it help cut down on drying times, a neglected dryer poses a serious fire hazard.

• Check Weather Stripping
  If you're running your air conditioner in the summer, you'll want to keep the cold air inside and hot air outside. Check weather stripping around doors and windows to ensure a good seal.

Outside

• Mow Lawn Regularly
  Your lawn will probably need regular mowing in the summer. Adjust your mower height to the highest setting, as taller grass helps shade the soil to prevent drought and weeds.

• Water Early in the Morning
  Ensure your lawn and garden get plenty of water during the hot summer months. Experts generally recommend watering in the early morning to minimize evaporation, but be mindful of any watering restrictions in your area, which may limit the time and/or days you are allowed to water.

• Weed Weekly
  To prevent weeds from taking over your garden and ruining your home's valuable curb appeal, make a habit of pulling weeds at least once per week.

• Exterminate Pests
  Remove any standing water and piles of leaves and debris. Inspect your lawn and perimeter of your home for signs of an invasion. If necessary, call a professional exterminator for assistance.

Fall

Fall ushers in another busy season of home maintenance as you prepare your home for the winter weather ahead.

Inside

• Have Heater Serviced
  To ensure safety and efficiency, it's a good idea to have your heating system serviced and inspected before you run it for the first time.

• Shut Down A/C for the Winter
  If you have central air conditioning, you can have it serviced at the same time as your furnace. If you have a portable or window unit, ensure it's properly sealed or remove it and store it for the winter. 

• Inspect Chimney
  Fire safety experts recommend that you have your chimney inspected annually and cleaned periodically. Complete this task before you start using your fireplace or furnace.

• Seal Windows and Doors
  Check windows and doors for drafts and caulk or add weatherstripping where necessary.

• Check Smoke Alarm and Carbon Monoxide Detectors
  If you checked your smoke and carbon monoxide detectors in the spring, they are due for another inspection. Batteries should be replaced every six months, so it's time to replace them again. Follow the manufacturer's instructions to test your individual devices. And even properly functioning devices should be replaced at least every 10 years, or per the manufacturer's recommendation.³

Outside

• Plant Fall Flowers, Grass and Shrubs
  Fall is a great time to plant perennials, trees, shrubs, cool-season vegetables and bulbs that will bloom in the spring.¹² It's also a good time to reseed or sod your lawn.

• Rake or Mow Leaves
  Once the leaves start falling, it's time to pull out your rake. A thick layer of leaves left on your grass can lead to an unhealthy lawn. Or, rather than raking, use a mulching mower to create a natural fertilizer for your lawn.

• Apply Fall Fertilizer
  If you choose not to use a mulching mower, a fall fertilizer is usually recommended. For best results, aerate your lawn before applying the fertilizer.¹³

• Inspect Gutters and Roof
  Inspect your gutters and downspouts and make needed repairs. Check the roof for any broken or loose tiles. Remove fallen leaves and debris.

• Shut Down Sprinkler System
  If you have a sprinkler system, drain any remaining water and shut it down to prevent damage from freezing temperatures over the winter.

• Close Pool
  If you have a pool, it's time to clean and close it up before the winter.

While this checklist should not be considered a complete list of your home's maintenance needs, it can serve as a general seasonal guide. Systems, structures and fixtures will need to be repaired and replaced from time-to-time, as well. The good news is, the investment you make in maintaining your home now will pay off dividends over time.

Keep a record of all your maintenance, repairs and upgrades for future reference, along with receipts. Not only will it help jog your memory, it can make a big impact on buyers when it comes time to sell your home … and potentially result in a higher selling price.

Are you looking for help with home maintenance or repairs? We have an extensive network of trusted contractors and service providers and are happy to provide referrals! Call or email us, and we can connect you with one of our preferred vendors.

Sources:

1. HouseLogic.com –
   https://www.houselogic.com/organize-maintain/home-maintenance-tips/value-home-maintenance/
2. Home Advisor –
   https://www.homeadvisor.com/r/servicing-your-air-conditioner/
3. Keyes & Sons Plumbing and Heating –
   http://keyes-plumbing.com/things-to-check-in-spring/
4. Allstate Insurance Blog –
   https://blog.allstate.com/test-smoke-detectors/
5. Houzz –
   https://www.houzz.com/ideabooks/17268616/list/how-to-wash-your-house
6. Angie's List –
   https://www.angieslist.com/articles/why-gutter-cleaning-so-important.htm
7. Angie's List –
   https://www.angieslist.com/articles/what-thatch-and-how-does-it-impact-my-lawn.htm
8. HGTV –
   http://www.hgtv.com/design/outdoor-design/landscaping-and-hardscaping/lawns/top-spring-lawn-care-tips-pictures
9. This Old House –
   https://www.thisoldhouse.com/more/may-mulching
10. Lowes –
    https://www.lowes.com/projects/lawn-and-garden/fertilize-your-lawn/project
11. The New York Times –
    https://www.nytimes.com/guides/realestate/home-maintenance-checklist
12. Better Homes and Gardens Magazine –
    https://www.bhg.com/gardening/yard/garden-care/what-to-plant-in-the-fall/
13. The Spruce –
    https://www.thespruce.com/late-fall-fertilizing-2152976
14. This Old House –
    https://www.thisoldhouse.com/how-to/how-to-get-rid-ice-dams
15. Houzz –
    https://www.houzz.com/ideabooks/55572864/list/your-winter-home-maintenance-checklist

You don't have to break the bank to celebrate the holidays in style—even in this season of inflation. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out extra savings.

For example, according to the U.S. Environmental Protection Agency (EPA), you can save a couple of hundred dollars a year just by sealing your home and boosting its insulation.¹ Other small fixes—such as swapping old light bulbs for LEDs and plugging electronics into a powerstrip—can boost your yearly savings enough to pay off some of your holiday budgets.

And thanks to a pandemic-era boom in online shopping, it is easier than ever to find deals on new and pre-owned furniture, thrifted gifts, DIY decor, and more. Even secondhand stalwarts like Goodwill have joined the digital fray, making it a cinch to score gently-used treasures at extra-low prices.²

You won't be the only one bargain-hunting your way to a more financially-stable New Year. Multiple surveys have found that inflation is not only chilling people's spending, it's also prompting shoppers to search for better deals and creative ways to reduce their bills.³

Here are some strategies you can use to boost your holiday budget by trimming household expenses:

1. Hunt for Deals on Groceries

If you're finding it harder than it used to be to serve your family dinner on a budget, you're not alone. With the U.S. food-at-home index (a measure of grocery price inflation) at a 43-year high, many families are struggling to control costs on food staples, such as meat, dairy, produce, and grains.⁴

That's made pulling off holiday gatherings especially stressful lately. But don't despair: Even with inflation, retailers are still giving motivated shoppers plenty of opportunities to whittle down their bills.

The key is to pay attention to the cost of each item on your shopping list—not just the most expensive—and look for easy swaps and discounts. For example, try buying non-perishable items in bulk, especially when they're on sale, and only in-season produce. Or trade name-brand goods for less expensive options from a store's private label. As you tap into your inner bargain hunter, you could be surprised by what you save when you're more mindful of your selections.

And unlike in the old days, you no longer have to clip your way through paper flyers to snag a bargain. Instead, you can save both time and money by scouting for deals online, digitally clipping coupons, and earning cash back through special apps and browsers. For example, coupon aggregation sites, like Coupons.com, and shopping apps—such as Checkout 51 and Ibotta—make it easy to score discounts and cashback on a variety of purchases, including groceries.

Also, check to see if your neighborhood grocer posts their weekly flyers online. If you're hosting a holiday party, the markdowns you find can help you narrow your food and recipe choices, based on what's currently on sale.

2. Prep Your Home for Holiday Guests With Pre-Owned Finds

You don't have to sacrifice style for the sake of preserving your holiday budget either. If you're expecting company this year and would like to add some festive flair to your home, you can do so inexpensively—especially if you're willing to decorate with items that are secondhand.

Thrifting is back in vogue, with an increasing number of shoppers preferring pre-owned furniture and home goods. A recent study found that the "re-commerce" market grew almost 15% last year, which was twice the pace of general retail.⁵ Plus, buying used isn't just a great way to save money, it also helps the environment by keeping reusable items out of landfills.

Fortunately, it's become easier to score secondhand deals online. For example, you can scout consumer marketplaces on Facebook, Craigslist, and OfferUp. Or you can take advantage of neighborhood freecycles and "Buy Nothing" groups. And a number of thrift shops now have e-commerce sites, including major chains, like Goodwill.

If you're handy with a paintbrush or have some basic carpentry skills, you can also modernize some of your existing furniture by upcycling it yourself. Or, if you enjoy crafting, search through your own recycling or sewing bin for raw materials to make one-of-a-kind decorations.

Don't stress yourself out, though, if you don't have the time or money to dress your home the way you hoped. "A house doesn't have to be perfect or completely done for it to feel festive or inviting," designer Justina Blakeney noted in an interview with the Washington Post. "These are family and friends, and they are not judging you."⁶ 

3. Forgo Major Renovations in Favor of DIY Home Improvements

Holidays are always a tricky time to undergo big renovations. But with ongoing worker and material shortages, now is an especially bad time to commit. Inflated costs can add thousands to your reno budget –—and unnecessary stress to your holiday.

Instead of suffering through an ill-timed remodel, you're better off saving this time of year for simpler, less expensive projects you can do yourself.

One winter-perfect upgrade to consider: Build a DIY fire pit so that you and your guests can roast marshmallows and relax in the cozy comfort of your backyard. You can also add some extra ambiance by hanging energy-efficient LED outdoor string lights that change from white to colorful. These are festive enough for the holidays, but also versatile enough to use year-round.

Or, if you'd rather curl up by an indoor fire, channel your DIY energy into a fireplace upgrade. Adding a wooden beam to the top of your mantel can add an extra layer of coziness. Alternatively, re-tiling or painting your fireplace surround can lend contemporary flair.

Just be sure to stick to DIY projects that you know you can do a quality job on—especially if your changes will be difficult to reverse. Feel free to reach out for a free assessment to find out how your planned renovations could impact your home's resale value. 

4. Invest in Home Maintenance Projects That Cut Your Utility Bills

You can save money by completing basic home maintenance tasks, such as swapping your furnace filter and updating your lightbulbs. But if you really want to lower your bills this winter, consider projects that make your home more energy efficient.

According to the EPA, 9 out of 10 homes in the U.S. are under-insulated, which wastes energy and money.⁷ Luckily, there are plenty of DIY insulation projects that you can complete in just a few days. For example, the EPA offers guides on how to:

• Insulate your attic or basement crawl space
• Weatherstrip doors and windows
• Seal areas around the house that may be leaking air, including electrical outlets and fireplaces

The savings you get from these projects can really add up. The EPA estimates that sealing and insulating your ducts can make your HVAC system up to 20% more efficient.⁸ And thanks to new provisions from the Inflation Reduction Act, you can also save a bundle this year by investing in certain energy-efficient upgrades and claiming a tax credit.⁹ Be sure to check with us about any local rebates and incentives that may be available, too, before getting started on a project. 

5. Use Expense Tracking to Boost Your Holiday Budget

 To avoid overextending yourself during the holidays (or anytime), one of the best things you can do is track your income and expenses. If your monthly budget is usually tight, you may need to make some adjustments to free up cash for holiday expenditures.

 For example, here's a sample budget worksheet. Start by adding in your expenses: Under the "Typical" column, you can list your standard expenses, and under the "Adjusted" column, list any areas where you could cut back on spending.

Then consider how your standard wages may be adjusted this month by extra shifts, additional tips, or an end-of-year bonus. By decreasing your spending and/or increasing your income, you can build room in your budget for holiday gifts and gatherings.

Feel free to use this worksheet as a template that you can personalize to your needs.

 WE'RE HERE TO HELP

 We would love to help you meet your financial goals now and in the year ahead. Whether you want to find lower-cost alternatives for home renovations, maintenance, or services, we are happy to provide our insights and referrals.

And if you're saving up to buy a new home, we can help with that, too. This is the perfect time to score a great deal because only the most motivated homebuyers and sellers are active in the market right now. So reach out to schedule a free consultation. We can fill you in on some of the exciting programs and incentives we're seeing that help make homeownership more affordable.

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. S. Environmental Protection Agency (EPA) - https://www.energystar.gov/campaign/waysToSave#!card0-GW91
2. USA Today - https://www.usatoday.com/story/money/retail/2022/10/05/goodwill-launches-online-store-goodwillfinds-website/8185084001/
3. Retail Dive -
   https://www.retaildive.com/news/inflation-drives-shopping-changes-consumers-survey/629973/
4. NBC News -
   https://www.nbcnews.com/select/shopping/how-save-groceries-ncna1299053
5. CNBC - ​​https://www.cnbc.com/2022/09/14/secondhand-shopping-is-booming-heres-how-much-you-can-save.html
6. Washington Post -
   https://www.washingtonpost.com/home/2021/11/09/holiday-entertaining-tips/
7. S. Environmental Protection Agency - https://www.energystar.gov/campaign/seal_insulate/why_seal_and_insulate
8. Energy Star -
   https://www.energystar.gov/campaign/waysToSave
9. The White House -
   https://www.whitehouse.gov/cleanenergy/?utm_source=cleanenergy.gov

Over the past few years, a real estate buying frenzy bid up home prices to eye-popping amounts. However, as mortgage rates have risen, buyer demand has cooled. ¹ Consequently, home sellers who enter the market today may need to reset their expectations.

The reality is, it's no longer enough to stick a "for sale" sign in the yard and wait for buyers to bang down the door. If you want to net the most money possible for your property in today's market, you'll need an effective game plan and a skilled team of professionals to implement it.

Fortunately, we've developed a listing strategy that combines our proven approach to preparation, pricing, and promotion—all designed to help you get top dollar for your home. But you will play an important role in the selling process, as well.

Here are some crucial steps you can take to set yourself up for success as a home seller in this market: 

1. Make Strategic Repairs and Improvements

When you sell something, it's important to consider what your customer wants to buy. And according to the National Association of Realtors, only 6% of today's buyers report that they are looking for a DIY fixer-upper.² The vast majority want a move-in-ready home, which means that any outstanding repairs or dated features can be a major turn-off.

Before your home goes on the market, we'll conduct a thorough walk-through to identify any problems that could prevent it from selling. In some cases, we may recommend a professional pre-listing inspection. Finding and addressing issues like leaks, rot, and foundation problems up front can pay off in the final sale price. Plus, it prevents sales from falling through because of a red flag on the home inspection, a scenario no seller wants to face.

Beyond repairs, we'll also help you identify the simple upgrades that offer the highest return on your investment. For example, new paint can give your home a fresh look at a reasonable cost. However, it's important to choose the right colors. One study found that painting your bathroom light blue could lead to a 1.6% increase in the offer price!³ Similarly, minor landscaping improvements can pay off in a major way. A healthy lawn offers an estimated 256% return on investment.^4\

2. Declutter and Depersonalize

When buyers look at a home for sale, they're trying to envision themselves living there. That's hard to do if it's chock-full of the current owner's family photos, children's artwork, and souvenir collections. Plus, cluttered homes look smaller, and older items can make them feel dated.

Decluttering before you put your home up for sale will help you in the long run—after all, you'll need to move all your things to your new home eventually. Now is the time to shred, digitize, or organize old documents, donate old clothes, or move bulky furniture into storage. At a minimum, you'll want to pack away excess items neatly before potential buyers view the home. Remove personal photos and other trinkets to create a blank slate that viewers can imagine decorating with their own prized possessions.

If you feel overwhelmed by this process, we'd be happy to make recommendations or refer you to a local service provider who can help. 

3. Stage Your Home for Success

 Just as you take care to dress professionally for a job interview, you should always ensure your home looks its best for potential buyers. Home shoppers today are used to scrolling through Instagram and Pinterest, and they want to see the same wow factor when touring a home.

The process of making your home look its best and appeal to potential buyers is called staging, and it can be a game changer. According to the International Association of Home Staging Professionals, an average priced staged home sells 5 to 11 times faster than its unstaged counterpart. Even better, the majority of staged homes sell for 4% to 20% over list price!⁵

Some sellers hire a professional stager, who may bring in furniture and decor to increase the home's appeal. Others choose to stage their homes themselves. We can help advise you on which route to choose and how much to invest in the process.

It's also important to consider what buyers in your neighborhood are likely to be looking for in a home. We can help guide your staging choices with our local market insights. For example, in neighborhoods where a large share of residents work from home, it may be effective to stage one room as an office space so potential buyers can envision their day-to-day routine.

4. Prep for Each Showing

Most of us don't live picture-perfect lives, and our homes reflect that (sometimes messy) reality. But when your home is on the market, it's important to ensure that it is always ready for viewers, even on short notice. A missed showing is a missed opportunity to sell your home!

Before your home hits the market, it may be worth hiring professional cleaners to get in all the nooks and crannies. After, try your best to keep things spic and span. Just a few minutes a day wiping down counters, sweeping the floors, and vacuuming can make a big difference.

It's also worth noting that most buyers will open cabinets, drawers, and closets—so try to make sure everything is as neat and organized as possible. Keep toiletries and small appliances off countertops, and secure valuables and sensitive documents in a safe or off-site.

Want help finding a cleaning service to make your home shine for buyers? Reach out for a referral!

5. Price Your Home Correctly From the Start

In the past few years, you may have seen homes in your neighborhood sell for shocking amounts and wondered if you could get a similar price for your property. The temptation to list your home on the high side can be strong, but it's best to be realistic from the start. Even in a hot market, some homes will sit for months. And the longer a property is listed, the more buyers worry that something is wrong with it.⁶

Of course, you also don't want to set your price too low and lose out on potential profit. That's why it's essential to work with real estate agents (like us!) who know the ins and outs of our local market and what buyers are willing to pay today. In a quickly-evolving market, comparable sales from a few months ago can lag the current market reality.

Fortunately, if you've owned your home for several years, chances are good that it's worth much more today than you paid for it. That means you stand to walk away with a handsome profit. In fact, recent reports show that homeowner equity is at an all-time high.⁷

6. Avoid Acting on Emotion

The past few years of over-asking-price offers with few contingencies have set certain expectations for many sellers. It's only natural to feel hurt or even offended if an offer comes in lower than what you think your home is worth.

However, it's important to keep in mind that those market conditions were unprecedented, and we are now returning to a more typical market. Home sellers who act rationally, rather than emotionally, are going to get the best results.

Remember: You can always counter a low offer. The same goes for repair requests and contingencies—everything is negotiable. However, it's important to accept that the market is adjusting and flexibility is key. Keep your expectations reasonable, and remain open-minded. And you can rest assured knowing that we'll be by your side every step of the way to help you navigate the process and negotiate a great deal.

7. Work With a Local Market Expert

The economics impacting mortgage rates may be national, but real estate markets are hyperlocal. That's why working with a professional agent who understands your neighborhood's dynamics is essential. Through our experience, we've gathered insights that can help us position your home for success in this market. Plus, we have the resources to connect with qualified buyers searching for a home like yours.

Working with a knowledgeable agent is also the secret to getting as much money as possible for your home. We have access to extensive data on recent sales in your neighborhood, which we will use to price and promote your property. That's one reason why homes sold by agents draw much higher prices than those sold by their owners alone. While for-sale-by-owner homes went for a median price of $260,000 in 2020, the median for homes sold by agents was $318,000.⁸ That's a difference of $58,000—and money you don't want to leave on the table.

YOUR AGENT AND ADVOCATE

Selling a home in a fast-changing market can be stressful. You're likely to hear conflicting advice and opinions from people in your life, and decisions like what color to paint your front door or how much to list your home for can be overwhelming.

 That's where we come in. The market may be adjusting, but it's still highly advantageous for sellers—and we're here to help you make the most of it. We're listing experts in our area, and we know what steps you need to take for a smooth, profitable transaction.

 If you're considering buying or selling a home, we invite you to reach out to schedule a free consultation. We're happy to talk through your specific situation and goals and help you identify your next steps.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Yahoo! Finance - https://finance.yahoo.com/news/bidding-war-rate-drops-lowest-120000537.html

2. National Association of Realtors - https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf

3. Zillow - https://www.zillowgroup.com/news/paint-colors-that-could-lead-to-higher-offers/

4. Angi - https://www.angi.com/articles/smart-landscaping-tips-can-increase-home-value.htm

5. International Association of Home Staging Professionals - https://pages.iahsp.com/home-staging-statistics/

6. Washington Post -https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/

7. com - https://www.realtor.com/research/changes-in-value-of-household-real-estate-q2-2022/
8. National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#purchased

According to Redfin, a national real estate brokerage, there's a pretty good chance you can find a condo or co-op that'll cost you less to own per month than it would to rent one!

Landlords have every right to get as much for their rental as possible. If there are renters who are ready, willing, and able to pay them what they're getting per month, then the market has spoken, and that is ultimately what defines and creates the market value.

The good news is, you might be able to buy your own home and pay less per month than you do in rent!

People often presume that buying a home will cost them more than renting. It certainly can, but it doesn't always. A lot depends upon:

• Where you live
• What's available to purchase
• How much homes sell for in your area
• How much rents are in area

It's not a no-brainer. You have to look into those things. But most likely you won't be able to buy just any house on the market and have it cost you less per month than something you could rent in the area. That's not how it works. For instance, you're probably not going to be able to buy a 4-bedroom, 3-bath colonial on a cul de sac for less than it costs you to rent a 2-bedroom, 1-bath apartment. But, you might be able to find a 2 bedroom, 1 bath condo or co-op that'll cost you less per month than that apartment!

In fact, according to recent monthly rental market data from Redfin, there's a pretty good chance you can find a condo or co-op that'll cost you less to own per month than it would to rent one! While other types of property cost more per month to own than to rent, condos and co-ops are about $200 cheaper per month to own on average on a national level. And that's not just right now; it has been cheaper to own a condo — by even more than that at times — going back to at least April of 2019.

Again, real estate values and markets function on a local level, so you can't entirely bank on national statistics. But they're at least a good indication that there are possibilities worth looking into if your rent is creeping higher, and you'd like to have some control over how much you're shelling out every month for a place to live! In the least, it's worth asking your local real estate agent to help you figure out if there are condos (or perhaps even another type of home) for you to buy, that'll cost you less per month than your current rent.

The Takeaway:

If you're feeling like rent prices are skyrocketing, you're not imagining things. While they're driven by supply and demand in the market, some landlords are also using software that helps them not only determine how much they can get for rent, but also encourages them to avoid bargaining with renters and to be firm on higher monthly rental rates.

The good news is that you might be able to buy your own condo or co-op, and pay less per month than you would in rent, based upon national rental market data. Reach out to your local real estate agent for a more accurate assessment of the options and possibilities in your area. With offices in Charlottesville, Madison, Amherst, Orange & Culpeper, our Montague Miller & Co real estate professionals can help you with your home search!

Resources: Redfin

It took a lot of dedicated effort to get your home on the market. It would be nice if you could just sit back and wait for the offers to roll in. Unfortunately, it's not that easy.

Once your home is on the market, your real estate agent will work hard to complete the sale, but you'll have to do your part to keep things moving forward. Here are five things you can do to help keep your marketing efforts on track.

1. Never say no to a showing
   When you're too tired to handle a last-minute showing, do it anyway. Home showings are a crucial part of the home-selling process. While they don't guarantee a sale, they do bring potential buyers to your door. When a home buyer decides to view your home it means that your listing made it through their initial process of elimination.
   
   Of course, no one can predict the outcome of a showing. The right buyer might walk in the door as soon as you list your property, or your sale could require multiple showings. Opening your house on demand is the best way to find out.
   
   
2. Keep your home white-glove clean
   When you open up your home for a showing, potential buyers inspect and evaluate areas of your home you might not even think about. They will notice dirty tile grout and remember dusty dining room corners, and these things could cost you a sale.
   
   It's a good idea to pay a service to do your initial cleaning as well as regularly scheduled cleanings while your home is on the market. If you enjoy doing your own cleaning, you'll still have plenty to do. You'll need to give your home a once-over before each showing or open house, and you'll want to clean up afterward.
   
   
3. Stay pet-odor vigilant
   If you have a cat, dog, or other indoor pet your realtor probably discussed odor issues early in your marketing process. You likely worked hard to rid your home of telltale odors before you had your first showing. That's great, but if your pets are still in your home, odors will be a recurring problem.
   
   If you've lived with pet odors for years, your nose might be insensitive to smells that are obvious to everyone else. It's important to stay vigilant.
   
   • Clean pet living areas regularly.
   • Use a quality pet deodorizer spray.
   • Clean up pet hair daily.
   • Remove pets, litter boxes, bowls, etc. from the premises during a showing.
   • Burn a scented candle before a showing to disguise odors.
   
   
4. Keep working on your curb appeal
   If you worked hard to give your home a look that brings buyers to your door, don't forget to keep it fresh. Getting the right curb appeal is worth the time and effort. If your home is on the market for more than a few months, you'll need to refresh the look.
   
   • Hire a landscaper to maintain your yard.
   • Keep your gutters clean.
   • Wash dirt and mud from walkway, driveways, and porches.
   • Check for new problems or issues you might not have noticed before.
   
   
5. Create a pleasant atmosphere
   When potential buyers visit your home, give them an atmosphere that says, "welcome home." Remove throw rugs and other trip hazards. Open bedroom and bathroom doors. Brighten rooms with natural and artificial light by turning on lamps and opening up curtains, drapes, and blinds.
   
   Adjust your climate control system to a pleasant temperature. Burn a lightly scented candle just before a scheduled showing, but don't forget to blow it out before you leave.

Your work isn't done until the sale is finalized. With these tips, you can ensure everything goes right with your home sale.

When you're selling your home, first impressions are everything. Typically, each home buyer is looking for something different in the house they buy. However, there are common problems that will make them walk — and, maybe, even run — out of your home if they see them. The good news is there are several things you can do to make buyers fall in love with your home.

1. Boost Your Curb Appeal
   Start with your yard. You won't believe the difference mowing your lawn, trimming hedges, picking up toys, adding fresh mulch, and raking leaves make. Best of all, improving the visual appearance of your yard doesn't cost you much. Just remember, once you're committed to selling your home, you'll need to stay on top of lawn work until the property has sold and is no longer your responsibility.
   
   If you have a plain yard, you should consider adding one or two flower beds or planting an ornamental tree to spruce things up.
   
   
2. Tweak the Interior
   Take a look at the interior of your home. Is the paint chipped, streaked, or just tired looking? Do the fixtures and door handles match? Are the outlet covers and light switches working properly?
   
   The odds are good that when you look at the interior of your home through the eyes of a prospective buyer, you'll realize that things are a bit dated. Now that you're selling your home, it's time to change that. A quick run to the hardware store for updated door fixtures, outlet covers, and paint won't cost too much. With a weekend's worth of work, you'll have given the inside of your home a facelift and made it more appealing to buyers.
   
   When choosing fixtures and, more importantly, paint, stick to neutral options.
   
   
3. Upgrade the Kitchen
   Buyers have said that the kitchen was what made them decide to place an offer on a home.
   
   If you're on a shoestring budget, you'll want to devote your funds to:
   
   - Ensuring the plumbing works perfectly,
   - Repairing and/or replacing damaged cabinet doors,
   - Making sure the kitchen is well lit,
   - Repainting,
   - Relining the shelves/drawers,
   - Refinishing hardwood floors,
   - Cleaning grout and re-grouting any damaged/crumbling grout.
   
   If you have more money to devote to upgrading the kitchen, consider:
   
   - Replacing older countertops with new granite countertops,
   - Upgrading to energy-efficient appliances.
   
   
4. Ceilings
   If your home was built prior to the 1980s and has a popcorn-finished ceiling will want to have it tested for asbestos. If the test is positive, you'll want to replace the ceiling before speaking to a real estate agent. Now that buyers understand the potential health risks connected to asbestos, they won't consider a home with the material.
   
   Even if the test comes back negative, you should still consider having the ceilings replaced. Not only does the popcorn finish give the house a dated feel, but it's also extremely difficult to keep clean or paint, which serves as a turn-off for any prospective buyers.
   
   
5. Remove the Clutter
   It's difficult for prospective buyers to fully appreciate the full potential of your home if it's full of clutter, so after deciding to sell your home, put any items you can temporarily live without into storage.

With these tactics and fixes, there's no doubt buyers will fall in love with your home. Ask your trusted Montague Miller real estate agent for more tips on how to get the most out of your sale.

Deciding whether to jump into the housing market or rent instead is rarely an easy decision – especially if you're a first-time homebuyer. But in today's whirlwind market, you may find it particularly challenging to pinpoint the best time to start exploring homeownership. 

 A real estate boom during the pandemic pushed home prices to an all-time high.¹ Add higher mortgage rates to the mix, and some would-be buyers are wondering if they should wait to see if prices or rates come down.

 But is renting a better alternative? Rents have also soared along with inflation – and are likely to continue climbing due to a persistent housing shortage.² And while homebuyers can lock in a set mortgage payment, renters are at the mercy of these rising costs for the foreseeable future.

 So, what's the better choice for you? There's a lot to consider when it comes to buying versus renting. Luckily, you don't have to do it alone. Reach out to schedule a free consultation and we'll help walk you through your options. You may also find it helpful to ask yourself the following questions: 

1. How long do I plan to stay in the home?

 You'll get the most financial benefit from a home purchase if you own the property for at least five years.³ If you plan to sell in a shorter period of time, a home purchase may not be the best choice for you.

 There are costs associated with buying and selling a home, and it may take time for the property's value to rise enough to offset those expenditures.

 Even though housing markets can shift from one year to the next, you'll typically find that a home's value will ride out a market's ups and downs and appreciate with time.⁴ The longer you own a property, the more you are likely to benefit from its appreciation.

 Once you've found a community that you'd like to stay in for several years, then buying over renting can really pay off. You'll not only benefit from appreciation, but you'll also build equity as you pay down your mortgage – and you'll have more security and stability overall.

 Also important: If you plan to stay in the home for the life of the mortgage, there will come a time when you no longer have to make those payments. As a result, your housing costs will drop dramatically, while your equity (and net worth) continue to grow. 

2. Is it a better value to buy or rent in my area?

 If you know you plan to stay put for at least five years, you should consider whether buying or renting is the better bargain in your area.

 One helpful tool for evaluating your options is a neighborhood's price-to-rent ratio: just divide the median home price by the median yearly rent price. The higher the price-to-rent ratio is, the more expensive it is to buy compared to rent.⁵ Keep in mind, though, that this equation provides only a snapshot of where the market stands today. As such, it may not accurately account for the full impact of rising home values and rent increases over the long term.

 According to the National Association of Realtors, a typical U.S. homeowner who purchased a single-family existing home 10 years ago would have gained roughly $225,000 in equity — all while maintaining a steady mortgage payment.⁶

 In contrast, someone who chose to rent for the past 10 years would have not only missed out on those equity gains, but they would have also seen U.S. rental prices increase by around 66%.⁷

 So even if renting seems like a better bargain today, buying could be the better long-term financial play.

 Ready to compare your options? Then reach out to schedule a free consultation. As local market experts, we can help you interpret the numbers to determine if buying or renting is the better value in your particular neighborhood.

3.Can I afford to be a homeowner?

 If you determine that buying a home is the better value, you'll want to evaluate your financial readiness.

 Start by examining how much you have in savings. After committing a down payment and closing costs, will you still have enough money left over for ancillary expenses and emergencies? If not, that's a sign you may be better off waiting until you've built a larger rainy-day fund.

 Then consider how your monthly budget will be impacted. Remember, your monthly mortgage payment won't be your only expense going forward. You may also need to factor in property taxes, insurance, association fees, maintenance, and repairs.

 Still, you could find that the monthly cost of homeownership is comparable to renting, especially if you make a sizable down payment. Landlords often pass the extra costs of homeowning onto tenants, so it's not always the cheaper option.

 Plus, even though you'll be in charge of financing your home's upkeep if you buy, you'll also be the one who stands to benefit from the fruits of your investment. Every major upgrade, for example, not only makes your home a nicer place to live; it also helps boost your home's market value.

 If you want to buy a home but aren't sure you can afford it, give us a call to discuss your goals and budget. We can give you a realistic assessment of your options and help you determine if your homeownership dreams are within reach.

4. Can I qualify for a mortgage?

 If you're prepared to handle the costs of homeownership, you'll next want to look into how likely you are to get approved for a mortgage.

 Every lender will have its own criteria. But, in general, you can expect a creditor to scrutinize your job stability, credit history, and savings to make sure you can handle a monthly mortgage payment.

 For example, lenders like to see evidence that your income is stable and predictable. So if you're self-employed, you may need to provide additional documentation proving that your earnings are dependable. A lender will also compare your monthly debt payments to your income to make sure you aren't at risk of becoming financially overextended.

 In addition, a lender will check your credit report to verify that you have a history of on-time payments and can be trusted to pay your bills. Generally, the higher your credit score, the better your odds of securing a competitive rate.

 Whatever your circumstances, it's always a good idea to get preapproved for a mortgage before you start house hunting. Let us know if you're interested, and we'll give you a referral to a loan officer or mortgage broker who can help.

5. How would owning a home change my life?

 Before you begin the preapproval process, however, it's important to consider how homeownership would affect your life, aside from the long-term financial gains.

 In general, you should be prepared to invest more time and energy in owning a home than you do renting one. There can be a fair amount of upkeep involved, especially if you buy a fixer-upper or overcommit yourself to a lot of DIY projects. If you've only lived in an apartment, for example, you could be surprised by the amount of time you spend maintaining a lawn.

 On the other hand, you might relish the chance to tinker in your very own garden, make HGTV-inspired improvements, or play with your dog in a big backyard. Or, if you're more social, you might enjoy hosting family gatherings or attending block parties with other committed homeowners.

 The great thing about owning a home is that you can generally do what you want with it – even if that means painting your walls fiesta red one month and eggplant purple the next!

 The choice – like the home – is all yours.  

HAVE MORE QUESTIONS? WE'VE GOT ANSWERS 

The decision to buy or rent a home is among the most consequential you will make in your lifetime. We can make the process easier by helping you compare your options using real-time local market data. So don't hesitate to reach out for a personalized consultation from our Montague Miller & Co trusted real estate professionals, regardless of where you are in your deliberations. We'd be happy to answer your questions and identify actionable steps you can take now to reach your long-term goals.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. 

Sources:

1. CNN -
   https://www.cnn.com/2022/08/11/homes/home-prices-second-quarter/index.html
2. NPR - https://www.npr.org/2022/07/14/1109345201/theres-a-massive-housing-shortage-across-the-u-s-heres-how-bad-it-is-where-you-l
3. Bankrate -
   https://www.bankrate.com/mortgages/5-year-real-estate-rule/
4. Federal Reserve Bank of St. Louis -
   https://fred.stlouisfed.org/series/MSPUS
5. National Association of REALTORS - https://www.nar.realtor/blogs/economists-outlook/price-to-rent-ratios-by-state-from-2014-2019
6. National Association of REALTORS -
   https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years
7. Statista -
   https://www.statista.com/statistics/200223/median-apartment-rent-in-the-us-since-1980/

Selling your home upon retirement is a question millions of people grapple with. While it might seem logical to scale down when you retire, is it really the best option? 

There's no "one size fits all" solution for selling your home. Most people will find there are pros and cons to the choice they have to weigh before making a decision.

• Pro: Selling Can Give You Retirement Income
  If you've worked hard to build equity in your house, selling it could be exactly the step you need to take to ensure a comfortable retirement. Plus, if you've been living in the home consistently in recent years, you may be eligible to shield much of the sale's proceeds from taxation. This can be the solution for retirees who find themselves without enough savings.
  
  
• Pros: Selling Means Fewer Recurring Costs
  No matter how well-maintained your home is, there'll always be costs involved in keeping it running. Your HVAC system, plumbing, electrical wiring, and much more can all fail without much warning. By selling, you avoid all these inevitable challenges of home ownership. Plus, you may find that you can reduce the overall costs of your utilities.
  
  
• Pros: Selling May Mean More Accessible Accommodations
  With age, many people face security and safety concerns they did not have in their youth. One of the most serious ones is the risk of a serious slip and fall, particularly when your home has many stairs. The cost of remodeling a home to make it more comfortable in retirement may be greater than what you are willing to invest in your retirement income.
  
  
• Pros: Selling May Mean More Flexibility in Retirement
  Your desires in retirement might be very different from what you wanted from your home years or decades ago. You might want to move closer to relatives, for example, get into a community more in keeping with your needs, or even move to another country. In all these situations and more, maintaining your home can make it harder for you to focus on the present.
  
  
• Cons: Renting May Not Be Worth It
  One of the biggest questions about selling is whether it makes financial sense. While your home might be appreciating in value, the cost of rent in your community is probably rising as well. If you know where you want to live after selling, take a close look at the nearby housing and the financial resources it will take for you to live comfortably there.
  
  
• Cons: Sentimental Value Matters
  By the time they reach retirement, many people have spent decades in one home. There's simply no way to put a price on the sentimental value such a property can offer. It may make more sense to keep the home in the family if you consider it an important part of your legacy. This may be a matter to bring up with adult children or others with a close connection to the place.
  
  
• Cons: It May Not Be the Right Time for Selling Your Home
  If your home is appreciating in value — or a minor improvement could substantially raise its sale price — it may be worth it to wait a little longer before making your move. In a "seller's market," a delay of just three months can make a big difference in what you can expect from your sale. If conditions are ideal, it may make sense to wait six months or even another year.

Ultimately, selling your home is a deeply personal decision. It's best made with input from a real estate agent you can rely on. Reach out to a Montague Miller & Company real estate professional to help you make your next move.

Selling your home soon? As you look at your finances and list your home, it's probably tempting to focus on your potential earnings. However, every real estate transaction comes with closing costs for the buyer and the seller.

You probably already know you're responsible for the agents' commissions, but what about the rest of your closing costs?

Before selling your home, make sure you understand all the closing costs you'll be expected to cover. Here are some common costs that may surprise you:  

1. Pro-Rated Property Taxes
   You're responsible for all property taxes up to the date of the sale. That means if you're selling in July, you need to pay your property tax for the first seven months of the year — not wait until next year to file. Make sure you're aware of the final number because you must provide this to the buyers. This is required because buyers will get a bill next year for the whole year, including the months you still owned the home.
   
   
2. Transfer Taxes and Fees
   Real estate transactions are essentially title transfers from one owner to another. Before your sale is complete, you must pay state and county or city fees in order to process this transfer. You may also need to pay transfer taxes. While most sellers are aware that it costs money to transfer a title, many are surprised by the final percentage, which can fluctuate wildly depending on your location. Make sure you're aware of the local requirement beforehand.
   
   
3. Title Insurance
   If you think buyers are always responsible for buying a title insurance policy, think again. Many states now require sellers to cover the new homeowner's title insurance policy. This coverage is designed to protect the mortgage lender from any future claims, and they won't approve the transaction without it. Find out now if you will be responsible for the buyer's title insurance coverage.
   
   
4. Home Preparations
   Staging a home for market success is about more than just cleaning thoroughly and rearranging the furniture. Your real estate agent will know which services are the most valuable, especially to sellers who want to ask for more money or sell more quickly. For example, renting a storage unit will make it much easier to clear out a third of your clutter and personal possessions, leaving a more neutral and walkable space for potential buyers. Carpet cleaning, painting, lawn care, and professional photography services are also important investments for serious sellers.

Of course, your final closing costs before selling your home will depend on a lot of different factors. From zip code and loan terms to the buyers' willingness to negotiate, these factors will help you figure out just how much to set aside for closing. Understand your responsibilities and prepare yourself for every possible expense.

Mortgage rates have been on a roller coaster ride this year, rising and falling amid inflationary pressures and economic uncertainty. And even the experts are divided when it comes to predicting where rates are headed next.¹

This climate has been unsettling for some homebuyers and sellers. However, with proper planning, you can work toward qualifying for the best mortgage rates available today – and open up the possibility of refinancing at a lower rate in the future.

How does a lower mortgage rate save you money? According to Trading Economics, the average new mortgage size in the United States is currently around $410,000.² Let's compare a 5.0% versus a 6.0% fixed-interest rate on that amount over a 30-year term.

With a 5% rate, your monthly payments would be about $2,201. At 6%, those payments would jump to $2,458, or around $257 more. That adds up to a difference of almost $92,600 over the lifetime of the loan. In other words, shaving off just one percentage point on your mortgage could put nearly $100K in your pocket over time.

So, how can you improve your chances of securing a low mortgage rate? Try these eight strategies:

1. Raise your credit score.

Borrowers with higher credit scores are viewed as "less risky" to lenders, so they are offered lower interest rates. A good credit score typically starts at 690 and can move up into the 800s.³ If you don't know your score, check with your bank or credit card company to see if they offer free access. If not, there are a plethora of both free and paid credit monitoring services you can utilize.

 If your credit score is low, you can take steps to improve it, including:⁴

• Correct any errors on your credit reports, which can bring down your score. You can access reports for free by visiting AnnualCreditReport.com.
• Pay down revolving debt. This includes credit card balances and home equity lines of credit.
• Avoid closing old credit card accounts in good standing. It could lower your score by shortening your credit history and shrinking your total available credit.
• Make all future payments on time. Payment history is a primary factor in determining your credit score, so make it a priority.
• Limit your credit applications to avoid having your score dinged by too many inquiries. If you're shopping around for a car loan or mortgage, minimize the impact by limiting your applications to a short period, usually 14 to 45 days.⁵

 Over time, you should start to see your credit score climb — which will help you qualify for a lower mortgage rate. 

2. Keep steady employment.

If you are preparing to purchase a home, it might not be the best time to make a major career change. Unfortunately, frequent job moves or gaps in your résumé could hurt your borrower eligibility.

When you apply for a mortgage, lenders will typically review your employment and income over the past 24 months.⁵ If you've earned a steady paycheck, you could qualify for a better interest rate. A stable employment history gives lenders more confidence in your ability to repay the loan.

That doesn't mean a job change will automatically disqualify you from purchasing a home. But certain moves, like switching from W-2 to 1099 (independent contractor) income, could throw a wrench in your home buying plans.⁶

3. Lower your debt-to-income ratios.

Even with a high credit score and a great job, lenders will be concerned if your debt payments are consuming too much of your income. That's where your debt-to-income (DTI) ratios will come into play.

There are two types of DTI ratios:⁷

1. Front-end ratio — What percentage of your gross monthly income will go towards covering housing expenses (mortgage, taxes, insurance, and dues or association fees)?
2. Back-end ratio — What percentage of your gross monthly income will go towards covering ALL debt obligations (housing expenses, credit cards, student loans, and other debt)?

What's considered a good DTI ratio? For better rates, lenders typically want to see a front-end DTI ratio that's no higher than 28% and a back-end ratio that's 36% or less.⁷

If your DTI ratios are higher, you can take steps to lower them, like purchasing a less expensive home or increasing your down payment. Your back-end ratio can also be decreased by paying down your existing debt. A bump in your monthly income will also bring down your DTI ratios. 

4. Increase your down payment.

Minimum down payment requirements vary by loan type. But, in some cases, you can qualify for a lower mortgage rate if you make a larger down payment.⁸

Why do lenders care about your down payment size? Because borrowers with significant equity in their homes are less likely to default on their mortgages. That's why conventional lenders often require borrowers to purchase private mortgage insurance (PMI) if they put down less than 20%.

A larger down payment will also lower your overall borrowing costs and decrease your monthly mortgage payment since you'll be taking out a smaller loan. Just be sure to keep enough cash on hand to cover closing costs, moving expenses, and any furniture or other items you'll need to get settled into your new space.

5. Compare loan types.

All mortgages are not created equal. The loan type you choose could save (or cost) you money depending on your qualifications and circumstances.

For example, here are several common loan types available in the U.S. today:⁹

• Conventional — These offer lower mortgage rates but have more stringent credit and down payment requirements than some other types.
• FHA — Backed by the government, these loans are easier to qualify for but often charge a higher interest rate.
• Specialty — Certain specialty loans, like VA or USDA loans, might be available if you meet specific criteria.
• Jumbo — Mortgages that exceed the local conforming loan limit are subject to stricter requirements and may have higher interest rates and fees.¹⁰

When considering loan type, you'll also want to weigh the pros and cons of a fixed-rate versus variable-rate mortgage:¹¹ 

• Fixed rate — With a fixed-rate mortgage, you're guaranteed to keep the same interest rate for the entire life of the loan. Traditionally, these have been the most popular type of mortgage in the U.S. because they offer stability and predictability.
• Adjustable rate — Adjustable-rate mortgages, or ARMs, have a lower introductory interest rate than fixed-rate mortgages, but the rate can rise after a set period of time — typically 3 to 10 years.

According to the Mortgage Bankers Association, 10% of American homebuyers are now selecting ARMs, up from just 4% at the start of this year.¹² An ARM might be a good option if you plan to sell your home before the rate resets. However, life is unpredictable, so it's important to weigh the benefits and risks involved. 

6. Shorten your mortgage term.

A mortgage term is the length of time your mortgage agreement is in effect. The terms are typically 15, 20, or 30 years.¹³ Although the majority of homebuyers choose 30-year terms, if your goal is to minimize the amount you pay in interest, you should crunch the numbers on a 15-year or 20-year mortgage.

With shorter loan terms, the risk of default is less, so lenders typically offer lower interest rates.¹³ However, it's important to note that even though you'll pay less interest, your mortgage payment will be higher each month, since you'll be making fewer total payments. So before you agree to a shorter term, make sure you have enough room in your budget to comfortably afford the larger payment. 

7. Get quotes from multiple lenders.

When shopping for a mortgage, be sure to solicit quotes from several different lenders and lender types to compare the interest rates and fees. Depending upon your situation, you could find that one institution offers a better deal for the type of loan and term length you want.

Some borrowers choose to work with a mortgage broker. Like an insurance broker, they can help you gather quotes and find the best rate. However, if you use a broker, make sure you understand how they are compensated and contact more than one so you can compare their recommendations and fees.¹⁴

Don't forget that we can be a valuable resource in finding a lender, especially if you are new to the home buying process. After a consultation, we can discuss your financing needs and connect you with loan officers or brokers best suited for your situation.

8. Consider mortgage points.

Even if you score a great interest rate on your mortgage, you can lower it even further by paying for points. When you buy mortgage points — also known as discount points — you essentially pay your lender an upfront fee in exchange for a lower interest rate. The cost to purchase a point is 1% of your mortgage amount. For each point you buy, your mortgage rate will decrease by a set amount, typically 0.25%.¹⁵ You'll need upfront cash to pay for the points, but you can more than make up for the cost in interest savings over time.

However, it only makes sense to buy mortgage points if you plan to stay in the home long enough to recoup the cost. You can determine the breakeven point, or the period of time you'd need to keep the mortgage to make up for the fee, by dividing the cost by the amount saved each month.¹⁵ This can help you determine whether or not mortgage points would be a good investment for you. 

Getting Started

Unfortunately, the rock-bottom mortgage rates we saw during the height of the pandemic are behind us. However, today's 30-year fixed rates still fall beneath the historical average of around 8% — and are well below the all-time peak of 18.45% in 1981.^{16, 17}

And although higher mortgage rates have made it more expensive to finance a home purchase, they have also eliminated some of the competition from the market. Consequently, today's buyers are finding more homes to choose from, fewer bidding wars, and more sellers willing to negotiate or offer incentives such as cash toward closing costs or mortgage points.

If you're ready and able to buy a home, there's no reason that concerns about mortgage rates should sideline your plans. The reality is that many economists predict home prices to continue climbing.¹⁸ So you may be better off buying today at a slightly higher rate than waiting and paying more for a home a few years from now. You can always refinance if mortgage rates go down, but you can't make up for the lost years of equity growth and appreciation.

If you have questions or would like more information about buying or selling a home, reach out to schedule a free consultation with your local Montague Miller & Company real estate professional. We'd love to help you weigh your options, navigate this shifting market, and reach your real estate goals!

Sources:

1. Washington Post - https://www.washingtonpost.com/business/2022/08/04/mortgage-rates-sink-below-5-percent-first-time-four-months/
2. Trading Economics - https://tradingeconomics.com/united-states/average-mortgage-size
3. NerdWallet - https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score
4. org - https://www.debt.org/credit/improving-your-score/
5. The Balance - https://www.thebalance.com/will-multiple-loan-applications-hurt-my-credit-score-960544
6. Time -https://time.com/nextadvisor/mortgages/how-lenders-evaluate-your-employment/
7. Bankrate - https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/
8. NerdWallet - https://www.nerdwallet.com/article/mortgages/payment-buy-home
9. Consumer Financial Protection Bureau - https://www.consumerfinance.gov/owning-a-home/loan-options/
10. NerdWallet - https://www.nerdwallet.com/article/mortgages/jumbo-loans-what-you-need-to-know
11. Bankrate - https://www.bankrate.com/mortgages/arm-vs-fixed-rate/
12. MarketWatch - https://www.marketwatch.com/picks/as-mortgage-rates-rise-heres-exactly-how-more-homebuyers-are-snagging-mortgage-rates-around-4-01656513665
13. Consumer Financial Protection Bureau - https://www.consumerfinance.gov/owning-a-home/loan-options/#anchor_loan-term_361c08846349fe
14. Federal Trade Commission - https://consumer.ftc.gov/articles/shopping-mortgage-faqs
15. Bankrate - https://www.bankrate.com/mortgages/mortgage-points/
16. CNBC - https://www.cnbc.com/select/mortgage-rates-today-still-relatively-low/
17. Rocket Mortgage - https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed
18. MarketWatch - https://www.marketwatch.com/picks/continuing-home-price-deceleration-heres-what-5-economists-and-real-estate-pros-predict-will-happen-to-the-housing-market-this-year-01659347993

If you have a dark, unfinished basement that is primarily used for storage or laundry, you might be wondering if it's worth the time and investment to enhance the space prior to selling. After all, basements are versatile and can serve many different functions, all of which make them an attractive feature for buyers.

While finishing your basement prior to selling can serve as a significant value-add, recovering your entire investment can be challenging. Therefore, it's often not recommended to invest heavily in a new basement, unless you plan on using it yourself for a few years before selling. However, there are many affordable upgrades and enhancements you can do to make the space more appealing:

• Enhance Your Lighting
  You'd be surprised how much of a difference good lighting can make in a basement. Basements are often thought of as dark and gloomy, but good lighting can really help reshape a buyer's perception. Switch to brighter LED lights. If you don't have enough lighting fixtures, invest in some standing lamps or table lamps. If your basement does receive any natural light, make sure nothing is blocking the window.
  
  
• Add A Home Office
  If your basement is already finished, staging a home office can make a significant difference. With so many people working from home, a home office is a necessity these days. You can easily find an inexpensive desk and chair and add in a bookshelf or some filing cabinets. A home office is a great way to demonstrate the versatility of the space.
  
  
• Partition The Room
  It can be hard to make the basement appealing when it's home to a water heater, washer, dryer, furnace, and other household appliances. If this is the case, you can attempt to divide the appliances from the remaining space with standing partitions or screens. Room dividers are very affordable and can make a big difference.
  
  
• Add Vinyl Flooring
  If you're looking for an easy and affordable way to cover up the concrete, consider adding some vinyl flooring. Vinyl is becoming a popular option for basement flooring — it not only looks great, but it's also easy to install.
  
  
• Keep It Dry
  The single most important thing a seller can do is keep the basement dry. Signs of water or dampness can be a major red flag for buyers, as it can signal more serious issues with the foundation. It might be worth investing in a professional to ensure the space is waterproof.

Sellers shouldn't feel like a full basement makeover is necessary, but keep in mind a little work can go a long way. At the end of the day, you don't want people to dread going down into the basement. Instead, make it a place that is inviting and accessible. Your Montague Miller & Co real estate professional can guide you on how to proceed.

Home improvement is the key to enhancing your home's value and increasing its ever-elusive curb appeal.

Of course, you probably already know that, but what you might not know is that upgrading your property doesn't have to be exp ensive or time-consuming. The right DIY home improvement projects improve your home, add value, and bring buyers to your door.

1. Improve Your Landscaping
   Why hire a professional landscaper? You can save money by trimming, mulching, planting, and decorating your own home into a garden showplace. With one trip to your local garden shop or hardware store, you can get everything you need to give your landscape the wow factor home buyers love.
   
   • Design your dream landscape, and then bring it to life.
   • Seed your lawn. Cut back overgrown bushes so buyers can see your home.
   • Add seasonal color with potted and hanging flowers.
   • Enhance your landscape with solar lights and pavers that save energy.
   
   
2. Beautify Your Bathroom
   You spend an awful lot of time in the bathroom. It should be a beautiful sanctuary that increases your home's value, not a shabby refuge. Change your perceptions and add value with these DIY home improvement projects.
   
   • Install trendy light fixtures.
   • Replace your sink with a designer vanity and a marble bowl.
   • Install a copper or chrome faucet and metal-coordinated accessories.
   • Eliminate unfortunate color choices with white wall paint.
   
   
3. Welcome Light into Your Home
   If you have large windows that allow natural light into your home, lucky you. If you don't have large windows, try these light-enhancing projects.
   
   • Install brighter light fixtures.
   • Paint your walls white and replace your drapes with neutral-colored blinds.
   • Remove some furniture to open up your space.
   
   
4. Up Your Energy Efficiency
   Green technologies save money, increase home values, and reduce your carbon footprint. When a potential buyer queries your utility company about your average energy bill, they'll like what they hear. You can perform several green upgrades yourself.
   
   • Replace light bulbs with energy-efficient versions.
   • Replace your stove, refrigerator, and small kitchen appliances with models rated high for energy savings.
   • Install solar-powered exterior lights.
   • Repair window seals to minimize hot/cold air exchange.
   
   
5. Modernize Your Kitchen
   Home buyers love grand spacious kitchens. Even if your kitchen isn't as big as a buyer desires, you can complete these DIY projects to make it irresistibly grand.
   
   • Redo your kitchen floor with trendy wood-look, gray, wide-plank, or natural wood tiles.
   • Upgrade your stove, refrigerator, and dishwasher with popular stainless steel or black steel models.
   • Install a farmhouse sink and faucet for a country modern workspace.
   • Replace your countertops with granite. You'll need someone to measure and cut the openings and a buddy to help you lift them into place.|
   
   
6. Make Your Home Intelligent
   Guys like gadgets. Okay, ladies like gadgets too. With a little time and effort, you can make your home gadget central. Internet-connected and digitally enhanced appliances and devices give your home an intriguing, high-tech feel.
   
   • Install a Wi-Fi-connected refrigerator.
   • Replace your stove with an intelligent version that lets you control cooking remotely.
   • Upgrade your home security system with cameras that let you watch your home and interact with visitors wherever you are.
   • Connect your coffeemaker to your alarm clock to brew your coffee when you wake up.

With these fixes, buyers will be more inclined to be flocking to your property and making top offers. And remember, it's not always the costly changes that give the best ROI, so consult your Montague Miller & Company real estate agent about which home improvement changes will be better suited for your home.

Remember the first time you laid eyes on your home? Your jaw dropped at the beautiful front yard. You were amazed at how all those windows sparkled as you walked up to the door. After you moved in, you thanked your lucky stars for sending you your dream home. You loved your house when you first bought it and knew you would live there forever. Wait a minute... Forever? That's an awfully long time to live at the same address. Here's what to do when you think you've fallen out of love with your home. 

There are different reasons people fall out of love with their dream homes. The good news is more often than not, it's possible to identify the issue and fall back in love with your home all over again.

Before selling your home, you need to answer a few questions:

• Have you really given your house a chance?
• Would you fall back in love with your house if you invested a little into some home improvement projects?
• Is the house the problem, or are you secretly dissatisfied with your life and laying the blame on your home?

If you've only been in your house for a few months, it's likely that you haven't actually fallen out of love with the place but are simply suffering from either a case of buyer's remorse or feelings of being unsettled. In this situation, the best thing to do is give things some more time. The chances are good that you'll relax and fall in love with your home all over again. If you discover that your emotional detachment from your house stems from it needing work or remodeling, you need to come to a few decisions. You can choose to invest the time and money into making the improvements your happiness relies on, or speak to a real estate agent about selling your home. It's important to note that sometimes finding your dream home means making improvements.

If you decide that it's not your house but rather something else triggering your sense of dissatisfaction, look around the community. You may find that it holds the secret to helping you feel fulfilled. The odds are that there are volunteering opportunities and clubs near your home to help you fill up your life and feel happier.

If you absolutely can't stand the idea of spending any more time in your house, then it's time to talk to a real estate agent about selling your house. When shopping for a new house, remember the issues that caused you to fall out of love with your house and avoid those pitfalls with your next purchase.

When you decide that selling your home is the best solution, always make sure you deal with a real estate agent you trust to get you the best price for the home. Call on one of our Montague Miller & Co real estate professionals to help you with your next move.

Getting ready for a home inspection is one of the more nerve-wracking things about selling your home. The good news is that you don't have to wait until after the inspection to fix some of the most common trouble spots.

There are certain spots in a home that every inspector will check. Focusing on these issues now is the best way to maximize your budget and your chance of a favorable inspection result.

1. Address Electrical Issues
   Electrical systems are always an area of focus during home inspections as old or damaged wiring can present a significant safety hazard. You can take care of some of the simple stuff like replacing broken switch plates and making sure that all light bulbs are working. It's also a good idea to contact a trusted electrician for a full review of your electrical systems. Better to find and fix it now rather than learn about a problem on inspection day.
   
   
   
2. Freshen Your Fireplace
   A fireplace can be a major attraction to homebuyers as long as it's clean, safe, and well-maintained. Staying on top of fireplace maintenance is always a good idea because an inspector will check it thoroughly. In addition to cleaning up, make sure your fireplace meets all relevant safety codes.
   
   
   
3. Eliminate Mold and Mildew
   Mold and mildew in a home are enough to scare off most buyers before things even reach the stage of inspection. Scour bathrooms, basements, kitchens, and anywhere else mold might develop. You can find specially formulated cleaning products to deal with mold at most hardware stores. If you have a serious mold problem, it's worth calling in the pros to get the job done thoroughly.
   
   
   
4. Fix Roof and Basement Leaks
   If you do have mold or mildew issues in your home, there's a good chance that leaks play a part. Roof and basement leaks are among the most common ways for water to enter the home and often cause significant damage before being detected. Have a professional contractor repair any leaks. It's an absolute must if you're preparing for inspection.
   
   
   
5. Check Your Plumbing
   Leaks don't just come from the outside of the home and faulty plumbing is sure to draw the attention of any home inspector. Taking care of any leaks is the first priority, but it's also a good idea to make sure that your water systems are functioning at their best. Check that the water pressure is high and your water heater works properly.

Investing the time and resources to repair these problems now will save a lot of stress in the long run and will likely save you some money at closing time. Better yet, a positive inspection result puts you one step closer to turning your dreams of a home sale into a reality.

Moving doesn't have to be a stressful experience.

You're moving! Let's face it; whether you're moving across the street or across the country, it can be one of life's more stressful events. Before you surround yourself with cardboard boxes and packing tape, use these tips to find and hire a reliable moving company in your area.

1. Stay Local
   Use someone in your local community. Ask your real estate agent, family, or friends who they trust for moving projects. They will point you in the right direction.
   
   The majority of moving scams are found online so stay local by searching businesses in your hometown. You can search online but remember, by staying local, it is easier to verify that they are a legitimate business.
   
   
   
2. Read Reviews
   In the moving industry, reputation is everything. You're going to tell everyone how great the movers were and that word of mouth is what keeps their business going.
   
   Further, check out the reviews posted for several moving companies that you are researching. In doing so, you will help ensure that you get a great company for a good value.
   
   
   
3. Visit the BBB
   Visit the Better Business Bureau and check for any complaints or reports against the moving company. Look for customer complaints and business reports, and even check their Department of Transportation license. Simply ask your moving company for their DOT Number.
   
   You can then search the database to investigate their record. Make sure the company is insured. Check their insurance number. Visit the moving companies beforehand to see what their operations are like.
   
   
   
4. Get Estimates
   Get at least three estimates from three different companies that have passed your initial screening tests. Try to ask for a not-to-exceed binding estimate. This means a cap will be placed on the maximum amount they can charge you for the move.
   
   When the moving company comes to your home, show them your belongings. Further, let them see your home's layout and what challenges they may face with stairs or other obstacles in moving items out of your home. Estimates should be free and always conducted in person. Phone estimates are bad.
   
   
   
5. Check the Paperwork
   Just like selling your home comes with paperwork, so should a good moving company provide you with several documents. They should give you a bill of lading, which is a legal document that serves as a receipt of the shipment of goods.
   
   Further, an inventory list should include all of the items they are moving for you. The most important document is the estimate itself which should be a written binding estimate which is dated and signed by the moving company.

You Are Ready to Move

You have checked potential companies thoroughly and should feel good about your choice. You have done your homework. Now choose the best one. A smooth transition awaits.

Your vacation is just around the corner. One thing you might not have planned is double-checking your home security.

The security of your home is just as important as your hotel reservations and flight schedule. These simple steps will help you avoid coming home to find your valuables were stolen or your house damaged.

1. Newspaper and Mail
   Either ask a neighbor to bring in your newspapers and mail or stop deliveries until after vacation. You can also stop any scheduled UPS package deliveries. UPS will hold them for up to 30 days. Mail and newspapers piling up in your mailbox are sure signs that you're away.
   
   
2. Light Timer
   Plug several lights throughout your home into a timer. It's also a good idea to have your television or speakers on the timer to create noise. Stagger the settings so your lights don't always come on simultaneously every day. You can pair many timers with an app on your smartphone so that you can control it from anywhere.
   
   
3. Home Improvement
   Before leaving for vacation, mow the lawn, trim your shrubs, wash the windows and clean up the yard. An overgrown lawn is a sure giveaway that no one is home. Burglars are less likely to target a well-maintained home, thinking someone is there. If you're planning an extended trip, hire someone to mow and water the lawn and make other small home improvements while you're away. For example, if a storm blows through, have someone pick up fallen branches and knocked over lawn furniture.
   
   
4. Check the Locks
   If you don't have durable deadbolts, consider replacing them before you leave. Lock all your windows, the garage door, the basement door, and any deck entryways. Secure every entry into your home. If you have a house key hidden outside, remove it because an experienced burglar will find it. Give your house key directly to any person you have coming to your house to water your plants or feed your fish while you're away.
   
   
5. Let The Authorities Know
   Before heading out the door, call the local police and let them know the dates you'll be out of town. Most local PDs send a police car by your home a few times, making sure nothing looks amiss.
   
   
6. Leave The Blinds Open
   Many people think it's better to close the window blinds, so no one can peek into the house while on vacation. This is actually not a good idea. If everyone in the neighborhood has window shades pulled up and your house has the shades down, it's a red flag.

With these tips, you can relax on your vacation without worrying about what's going on back home.

Every buyer-to-be knows searching for a home can be a challenge. However, your house hunt doesn't have to mean chaos if you start with an organized plan. Streamlining your search starts with a healthy dose of preparation by including a great real estate agent, setting a budget, creating a wish list, and reviewing real estate listings that meet your requirements.

These six tips can keep you organized and focused as you search for your new home.

1. Involve Your Agent
   Your real estate agent isn't there just to set up visits and oversee the closing process when you're buying a house. They're also your number one resource for answering questions, sharing ideas, and providing real estate advice.
   
   
2. Set a Budget
   While you don't have to know exactly how much you'll be able to spend at the start, it's a good idea to narrow your budget down to a comfortable range. Setting a sensible budget from the start makes every step that comes after easier. You can always adjust later if your finances change.
   
   
3. Scout First
   Before you start scheduling visits, it's a good idea to scout some neighborhoods and identify possible matches. Doing online research will help you narrow down the possibilities. You can learn even more by driving through the most appealing spots that your research uncovers. Be sure to write down the info of any homes that catch your eye so that you can visit them later for a closer look.
   
   
4. When in Doubt, Make a List
   Making lists are a great way to stay organized and super helpful when buying a house. Making lists of your needs, wants, and deal-breakers will help you lock in on the best fits and save time by quickly eliminating homes that just aren't a match.
   
   
5. Ask Around
   Have any friends or family members who recently bought in a new community or live in a neighborhood you're considering? It helps to get the inside scoop on a neighborhood from someone you trust.
   
   
6. Get Pre-Approved
   Want to impress potential sellers and gain some peace of mind in the process? Getting pre-approved for a mortgage is an excellent idea when shopping for a house and will make life much easier when it's time to make an offer. Get this step out of the way early and you'll be in great shape.

Creating a plan before you start your search for a home gives you the chance to enjoy the process and to make an efficient, informed decision when it's time to place an offer on your new house.

The last two years caught many of us off guard—and not just because of the pandemic. They also ushered in the hottest housing market on record, with home prices rising nationally by nearly 19% in 2021, driven primarily by low mortgage rates and a major supply shortage.¹

 But while some had hoped 2022 would bring a return to normalcy, the U.S. real estate market continues to boom, despite rising interest rates and decreasing affordability.

 So what's driving this persistent demand? And is there an end in sight?

Here are three factors impacting the real estate market right now. Find out how they could affect you if you're a current homeowner or plan to buy or sell a home this year.

 MORTGAGE RATES ARE RISING FASTER THAN EXPECTED

 Over the past couple of years, homebuyers have faced intense competition for new homes—in part due to historically low mortgage rates that were a result of the Federal Reserve's efforts to keep the economy afloat during the COVID-19 pandemic.

 However, in response to a concerning level of inflation, the Fed is now reversing those efforts by raising the federal funds rate. And as a result, mortgage rates are rising, as well. Few experts predicted, though, that mortgage rates would go up as quickly as they have.

 In January 2022, the Mortgage Bankers Association projected that rates would reach 4% by the end of this year.² By mid-April, however, the average 30-year fixed mortgage rate had already hit 5%, up from around 3% just one year prior.³ On a $400,000 mortgage, that 2% difference could translate into an additional $461 per monthly payment.

 Since then, mortgage rates have continued on an upward trend. So what impact are these rising rates having on demand? While many buyers had hoped for a cooling effect, experts warn that may not be the case.

 Ali Wolf, chief economist at housing market research firm Zanda, told Fortune magazine, "Rising mortgage rates are having a counterintuitive effect on the housing market. Home shoppers are actually sprung into action in an attempt to buy a home before mortgage rates rise any higher."⁴

 Since inventory remains low, the resulting "race" has kept the homebuying market highly competitive–at least for now.

 What does it mean for you?

 While current 30-year fixed mortgage rates represent an increase over previous months, they remain well below the historical average of 8%.⁵ As inflation across the economy continues, the Fed is likely to raise rates further this year. Buyers should act fast to secure a good mortgage rate. We'd be happy to refer you to a lender who can help.

 For sellers, speed is also of the essence. The pool of potential buyers may shrink as mortgages become more expensive. And if you plan to finance your next home, you'll want to act quickly to secure a favorable rate for yourself. Contact us today to discuss your options.

 HOME PRICES KEEP CLIMBING

 History shows that higher interest rates don't necessarily translate to lower home prices. In fact, home prices rose 5% between 1980 and 1982, a period of significantly higher mortgage rates and inflation.⁵

 Forecasters expect that home prices will continue to go up throughout 2022, though likely at a slower pace than the 18.8% increase of the last 12 months.⁴ Bank of America predicts that prices will be up approximately 10% by the end of this year, while Fannie Mae estimates 11.2%.^6,7

 In addition to limited supply and a race to beat rising mortgage rates, home values are also climbing because of positive economic indicators, like low unemployment.⁸ Plus, rents are soaring–up 17% from a year ago–which is prompting more first-time homebuyers to enter the market.⁹ Add to that the continued popularity of remote work, and it's easy to see why property prices continue to surge.

 However, it's not all bad news for prospective homebuyers. Economists expect that as mortgage rates rise, the rate of appreciation will continue to taper, though the effect may be gradual.

 "Eventually mortgage rates will slow down home prices," according to Ken Johnson, an economist at Florida Atlantic University interviewed by Marketwatch.¹⁰ "We should not see rapid upticks in prices as mortgage rates rise." Forecasters agree—Fannie Mae expects price increases to slow to 4.2% in 2023.⁷

 What does it mean for you?

 While the pace of appreciation is likely to decrease next year, home prices show no signs of going down. However, current labor shortages are leading to higher salaries and better job opportunities for many workers. You may find that your income growth outpaces home prices, making homeownership more affordable for you in the future.

 For homeowners, the outlook's even brighter. You could find yourself sitting on a nice pile of equity. Contact us for a free home value assessment to find out.

 INVENTORY REMAINS EXTREMELY LOW

 As noted, one of the largest hurdles to homeownership is a lack of inventory. According to a February 2022 report by Realtor.com, there's an expanding gap between household formation and home construction, which has resulted in a nationwide shortage of 5.8 million housing units.¹¹

 The origins of this shortage date back to the 2008 housing crisis, during which crashing home values led contractors to stop building new properties—a trend that has not been fully reversed.¹²

 That decline in home construction also resulted in a decrease in the number of home building professionals, a trend that was exacerbated by job losses during the COVID-19 pandemic. Now, many builders are limited by their ability to find qualified labor.

 Another major challenge is a staggering increase in the cost of materials. Pandemic-related supply chain shortages have been a significant driver, with home building material costs rising on average 20% on a year-over-year basis. The price of framing lumber alone has tripled since August 2021.¹³

 These trends add tens of thousands of dollars to the cost of a typical home. Factors like a lack of buildable land in many areas, restrictive zoning, and a shortage of developers are also contributing to the issue.¹⁴

 Most homebuying experts agree that the lack of inventory is the primary factor driving rising housing prices and unprecedented competition for homes. With available housing units near four-decade lows, the end of the current housing boom is not yet in sight.¹⁵

 What does it mean for you?

 Prospective buyers should be prepared to compete for a home, since low inventory can lead to multiple offers. You may also need to expand your search parameters. If you're ready to look, we're ready to help.

 For sellers, the picture is rosier. In this strong market, your home may be worth more than you realize. Contact us to find out how much your home could sell for in today's market.

 WE'RE HERE TO GUIDE YOU

 While national real estate trends can provide a "big picture" outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.

 If you're considering buying or selling a home, contact one of our Montague Miller & Co real estate professionals to schedule a free consultation. We can help you assess your options and make the most of this unique real estate landscape.

Sources:

1. Marketwatch - https://www.marketwatch.com/picks/home-price-appreciation-will-normalize-what-5-economists-and-real-estate-pros-predict-will-happen-to-home-prices-in-2022-01646940841
2. Bankrate -
   https://www.bankrate.com/mortgages/mortgage-rate-forecast
3. CNBC -
   https://www.cnbc.com/2022/04/16/heres-how-much-the-same-mortgage-costs-now-compared-to-last-year.html
4. Fortune -
   https://fortune.com/2022/03/23/housing-market-interest-rate-economic-shock/
5. National Association of Realtors -
   https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-april-07-2022
6. Fortune -
   https://fortune.com/2022/03/16/home-prices-2022-2023-bank-of-america-forecast-mortgage-rates/
7. Fortune -
   https://fortune.com/2022/03/07/what-home-prices-will-look-like-2023-fannie-mae/
8. Fortune -
   https://fortune.com/2022/03/17/home-prices-drop-housing-markets-california-michigan-massachusetts-corelogic/
9. CNN -
   https://www.cnn.com/2022/03/23/success/us-national-rent-february/index.html
10. MarketWatch -
    https://www.marketwatch.com/story/home-prices-increase-at-one-of-the-fastest-rates-on-record-but-higher-mortgage-rates-should-slow-future-growth-11648559497
11. com -
    https://www.realtor.com/research/us-housing-supply-gap-expands/
12. NPR -
    https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain
13. Investopedia -
    https://www.investopedia.com/housing-market-dips-in-early-march-2022-5222449
14. NPR -
    https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain
15. Fortune -
    https://fortune.com/2022/03/14/housing-market-key-metric-inventory-zillow-bad-for-buyers/

Some Highlights

What does the rest of the year hold for the Houseing Market? Here's what experts have to say about what lies ahead.

Home Prices are projected to rise and so are mortgage rates.  Experts are also forecasting another strong year for home sales as people move to meet their changing needs. 

Connect with a Montague Miller & Co local real estate professional so you can make your best move this year.

Resources: Keeping Current Matters, CoreLogic, Freddie Mac, Fannie Mae, NAR, Calculated Risk, MBA

Our nation is in the midst of a serious housing crunch. Last year, a lack of inventory and soaring prices left many would-be homebuyers feeling pinched. But now, with interest rates climbing, many of them are also feeling desperate to lock in a mortgage—which has only added fuel to the fire.¹

Fortunately, if you're a buyer struggling to find a home, we have some good news. While it's true that higher mortgage rates can decrease your purchasing budget, there are additional ways to compete in a hot market.

Yes, a high offer price gets attention. But most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.

We can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm. 

1.   Demonstrate Solid Financing

The reality is, no one gets paid if a home sale falls through. That's why sellers (and their listing agents) favor offers with a high probability of closing.

Sellers particularly love all-cash offers because there's no chance of financing issues cropping up at the last moment. But don't despair if you can't pay cash for your home. According to the National Association of Realtors, only about 1 in 4 home purchases are all-cash deals, which means the vast majority are financed with a mortgage.²

If sellers are assured that financing will come through, buying with a mortgage doesn't have to be a big disadvantage. The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer.

It's also important to consider the reputation of your lender. While sellers may not know or care about a lender's reputation, their agents often do. Some lenders are much easier to work with than others, especially if you are pursuing certain types of mortgages like FHA or VA loans.³ If so, you'll want a lender who specializes in these types of mortgages. If you're unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business.

2.   Put Down a Sizeable Deposit

Buyers can show sellers that they're serious about their offer and have "skin in the game" by putting down a large earnest money deposit.

Earnest money is a deposit held in escrow by a title company or the seller's broker or lawyer.  If the purchase goes through, it is applied to the down payment and closing costs—if the sale falls through, the buyer may lose some or all of that deposit.

While an earnest money deposit is typically around 1-2% of the sale price, offering a higher deposit can help demonstrate to the buyer that you are serious about the property.⁴ However, this strategy can also be risky. We can help you determine an appropriate deposit to offer based on your specific circumstances.

3.   Ask for Few (or No) Contingencies

Most real estate offers include contingencies, which are clauses that allow one or both parties to back out of the agreement if certain conditions are not met. These contingencies appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.⁵

Common contingencies include:

• Financing: A financing contingency gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.
• Inspection: An inspection contingency gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.
• Appraisal: Most lenders will not offer a mortgage on a home that costs more than it's worth. An appraisal contingency gives the buyer an opportunity to get the home professionally assessed to ensure that its value is at or above the sales price. If an appraisal comes in low, the seller may be asked to renegotiate the contract.
• Sale of a prior home: Some buyers cannot afford to purchase a new home until they sell their previous one. If the buyer is unable to sell their current home within a specified window of time, this contingency enables them to withdraw from the contract without penalty.

Since contingencies reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. The more contingencies that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive certain contingencies.

However, it's very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection contingency may find out too late that the home requires extensive renovations, and a buyer who waives the appraisal may risk their mortgage falling through. If you back out of a home purchase without the protection of a contingency, you could lose your earnest money deposit.⁶ We can help you assess the risks and benefits involved.

4. Offer a Flexible Closing Date and/or Leaseback Option

When it comes to selling a house, money isn't everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may prefer a longer closing timeline that gives them time to find housing in their new location.

Similarly, short-term leaseback options, in which the sale is completed but the seller retains the right to rent the home for a specified period of time, can be compelling.⁷ These arrangements enable the seller to use the money from the sale of their home to purchase their next house. A leaseback agreement also makes it possible for them to avoid moving twice when their next home is not yet ready to occupy.

Flexible closing dates and leaseback options can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.

Of course, the value of these terms depends on the seller's situation. We can reach out to the listing agent to find out the seller's preferred terms, and then collaborate with you to write a compelling offer that works for both parties.  

5. Work With a Skilled Buyer's Agent

In this ultra-competitive real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. We will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk.

Plus, we know how to write offers that are designed to win over both the seller and their listing agent. The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer's agents who are professional, communicative, and courteous.

Once your offer is accepted, we'll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you'll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.

Helping You Get to the Right Offer

In many cases, a competitive offer doesn't need to be all-cash, contingency-free, or significantly above asking price. But if you're serious about buying a home in today's market, it's important to consider what you can do to sweeten the deal.

If you're a buyer, we can help you compete in today's market without getting steamrolled. And if you're a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact a local Montague Miller & Co real estate professionals today to schedule a free consultation.

Sources:

1. National Association of Realtors -
   https://www.nar.realtor/newsroom/pending-home-sales-dwindle-4-1-in-february
2. National Association of Realtors -
   https://www.nar.realtor/newsroom/existing-home-sales-fade-7-2-in-february
3. Forbes -
   https://www.forbes.com/advisor/mortgages/housing-crisis-tips/
4. com -
   https://www.realtor.com/advice/finance/earnest-money-deposit-mistakes-buyers-make/
5. Bankrate -
   https://www.bankrate.com/real-estate/contingency-clause/
6. Home Buying Institute -
   http://www.homebuyinginstitute.com/mortgage/risks-of-waiving-a-contingency/
7. com -
   https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement

Highlights

• Today's housing market is the direct result of low supply and high buyer demand. Here's what that means for you and your plans to buy or sell.
• For buyers, expect competition, be ready to move fast, and be prepared to submit your strongest offer. For sellers,  know your house will be the center of attention  and that it'll likely sell quickly and get multiple offers.
• If you're ready to move, let's connect to talk about our local area and how you can take advantage of today's unprecedented housing market.

Resources by Keeping Current Matters, NAR

What's Your Home Buying Power?

If you're in the market for a new home or investment property, one of the first questions you'll probably ask is, "What can we afford?" Many buyers become so caught up in how much they can afford that they don't realize their total buying power—that is, the total amount of purchasing potential they actually have.

 Buying Power Defined

Your buying power is comprised of the total amount of money you have available each month for a mortgage payment. This means the money you have each month after fixed bills and expenses. Any money you've saved for a down payment, the proceeds from the sale of your current home, if applicable, and the amount of money you're qualified to borrow all impact your buying power as well. When you take all of this into account, you may find you are able to purchase a larger home or a home in a more desirable neighborhood, or you might realize you should be looking for homes in a lower price range.

 What About Housing Affordability?

Housing affordability is a metric used by real estate experts to assess whether or not the average family earning an average wage could qualify for a mortgage on the average home.¹ Although this figure is essential to creating a comprehensive overview of the real estate market, it's not a factor you should consider in your home search. What may be considered affordable to you based on your income and other factors may be different than what's affordable to the average buyer.

Why Buying Power Matters

A common misunderstanding is that a home's list price determines whether or not you can purchase it. Although it's important to look at the price tag, it's essential to consider what your monthly payment will be if you own the home. After all, the purchase price doesn't include the housing-related expenses, such as annual property taxes, homeowner insurance, associated monthly fees, and any maintenance or repairs. Figuring out the payment will prevent you from overestimating or underestimating your buying power. After all, you'll live with your monthly payment, not the sales price.

Once you have clarity on your buying power, you'll be able to buy the home you want, instead of settling for a home because you feel it's the only one you can afford. It will also prevent you from becoming "house poor," a common term for someone who's put all their money toward the down payment, leaving them nothing left over for fees outside of their monthly house payment. Both scenarios can negatively impact the lifestyle you want to live. Understanding your buying power can help you get the home you want without sacrificing the lifestyle you desire.

If you haven't sold your current home yet, a Comparative Market Assessment (CMA) will give you a general idea of how much you may get for your home based on what other homes have sold for in your area. Contact our team for a FREE CMA!

Calculating Your Buying Power

You might be wondering, "How do I know what my buying power is?" Buying power is calculated by adding the money you've saved for a down payment and/or the money you made from selling your home (minus fees and mortgage payoff) to all of your sources of income and investments that could be used to make your monthly payment. Make sure to include your monthly pay, commissions or tips, dividends from investments, payments from rental properties or other monthly income you receive as well as the loan amount you're willing to finance and qualify for.

Most lenders advised buyers to spend no more than 35 to 45 of their pretax income on housing, meaning all your income and sources of revenue prior to paying taxes. Make sure you factor in not only your mortgage payment but also property tax and home insurance to the cost of housing.² However, other financial experts advise spending no more than a very conservative 25 percent of your after-tax income on your housing expenses.²  Whether you plan to spend the average, play it conservative or split the difference is up to you.

Traditionally, mortgage lenders have targeted the ideal housing expense amount to be a ratio of 28 percent or less.³

However, these figures bring up an important point: you don't have to spend all of your savings and available monthly income on a mortgage payment. It's important to set money aside for regular home maintenance, unexpected repairs, and monthly fees, such as a condominium or homeowners association fee. While the above ratios are commonly accepted, a lender will look at your total financial picture when they decide how much they're willing to lend. It may be tempting to take out a large loan in order to purchase the home of your dreams, but keep in mind the less money you have to borrow, the stronger your buying power may be.

4 Things That Impact Buying Power

1. Credit score. A great score can help you lock into a lower interest rate.
2. Debt-to-income ratio. The lower the ratio, the better risk you may be to lenders as long as you have an established credit history.
3. Assets, including the documentation of where the money for the purchase is coming from and the mix of your investments.
4. Down payment. The more you're able to put down, the less you will have to borrow. With a down payment of 20 percent or more, you won't have to purchase private mortgage insurance (PMI) and you may also be able to negotiate a lower interest rate.

How to Save for a Down Payment

If you're thinking of buying a home one day, one of the first steps to take is to start saving for a down payment. Here are some tips to make saving easier.

First-time buyers:

1. Set a savings goal. One way to figure out how much to save is to use the average sales price for homes that are similar to what you want and figure out your target down payment percentage. For example, if homes are selling for $200,000 in your area and you want to put 20 percent down, you'll have to save $40,000. Set a goal to save that amount within a specific time frame; just keep in mind the longer you save, the more the average selling price will change. Although the majority of buyers saved for six months or less, 29 percent of all buyers (and 31 percent of first-time buyers) saved for more than two years for a down payment.⁴

2. Cut back on expenses. Review your monthly expenses and look for ways to save. Twenty-nine percent of buyers cut spending on non-essentials items and 22 percent cut spending on entertainment while they were saving for a home.⁴ Think about items you can live without or cut back on temporarily while you're saving. 

3. Look for ways to boost your income. Get a side job or sell items online or at a garage sale to increase your income in a short amount of time. Be sure to save any windfalls you get, including your annual income tax refund or work bonuses.

5. Check out home-buying programs. Your state, county or local government may offer special programs, such as grants, for first-time buyers to use.
6. Ask your family. Thirteen percent of all buyers, and 24 percent of first-time buyers, were given money from family or friends to use toward the down payment of their home.⁴

Repeat buyers:

More than 52 percent of repeat buyers used the proceeds from the sale of their primary residence toward the down payment on their next home.⁴ Similarly, 76 percent tapped into their savings accounts.⁴ If you're thinking of buying another home, here are more ways to save more money, in addition to the tips listed above:

1. Rent a room. If you have an income flat (or mother-in-law unit) attached to your home, rent it out and channel the income into a high-interest savings account.

2. Make your money work for you. If you don't plan to buy for at least five years, invest it and let the compound interest work for you. Discuss this option with your financial planner or broker to see if this is ideal for you and your goals.

3. Tap into your 401(k). If you have a 401(k) plan, you may be allowed to borrow a portion of it, the lessor of up to $50,000 or half of its value, for your down payment. Remember, it's a loan so you'll have to pay it back. If you leave or lose your job before you've repaid the loan, you'll have between 60 to 90 days to repay the balance or face stiff taxes and penalties.

If you want to buy an investment property

Whether you're buying a second home or a rental property, here are a couple of tips to save for a down payment.

1. Tap into your equity. If you've paid off or paid down your mortgage on your primary home, you may be able to tap into your equity to purchase another property. Contact your lender to learn more about a HELOC or home equity loan.

2. Get a partner. Find a friend or relative who's willing to purchase property with you. Typically, you'll split the costs and profits equally. Just make sure to work with an attorney to create a partnership agreement to fit your situation.

Work Out Your Buying Potential

What's your buying potential? Fill out this worksheet to get an estimate.

Source: Iowa State University Extension, What is your house-buying power?

Monthly Payment on 30-Year Fixed Rate Mortgage

Didn't see your desired loan amount? Use the table below to estimate your monthly payment (principal and interest) per $1,000 of your loan. To figure out an estimated loan payment, multiply the factor by the number of thousands in the amount of your mortgage.

For example, if you intend to borrow $400,000, with a loan term of 30 years at 4% interest, multiply 4.77x 400 = $1908 per month.

Source: HSH.com 

Don't forget to factor in property taxes and insurance. These are often added to your principal and interest of your mortgage payment—the money used to pay down the balance of your loan and the charge for borrowing the money. Since these numbers vary, contact your county assessor's office for the current property tax rate and your insurer for a home insurance quote. Once you have these figures, divide each by 12 to estimate how much they'll add to the above payment amounts.

Do you want a clearer picture of your buying power? Would you like to see what kind of homes you can get with your buying power? Give us a call!

Sources: 1. National Association of REALTORS  2. Moneyunder30.com 3. Credit.com  4. National Association of REALTORS, 2016 Profile of Home Buyers and Sellers 5. Iowa State University Extension  6. HSH.com 

There's a lot to consider when selling your home, from the market and appraisals to where you'll go next. Don't forget, however, that design is also a key factor. It's often one of the first things buyers notice when they walk into a home, and it's also a detail that you, as a seller, can easily control.

According to Realtor.com's 2022 housing market forecast, home for-sale inventory will increase from last year, as will the projected number of overall sales.¹ This means, if you're looking to sell in the near future, now is the time to consider how you can stand out.

Updating your home design is one way to do that. Changes like new security features or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.

Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate a property, give us a call. We can help you realize your vision and maximize the impact of your investment.

Eco-Friendly Fixtures

Millennials account for the largest share of current homebuyers, according to the National Association of Realtors.² Sustainable living tops the list of priorities for this generation. A recent Deloitte survey found that nearly one-third of millennials initiate or deepen their consumer investment in products or services that help the environment—this also includes the houses they choose to live in.³

Here are a few eco-friendly design features that will be attractive to these millennial buyers in 2022. Bonus, they can net a significant return on investment (ROI) for you, as a seller, too.

• Energy-Efficient Windows: Heat gain or loss from low-performance windows drives 25–30 percent of home heating and cooling costs, according to gov.⁴ Therefore, energy-efficient windows can help homeowners save money.
• Low-Flow Water Fixtures: According to the EPA, replacing your shower head with one that's labeled with WaterSense can save four gallons of water with each shower.⁵ Doing the same with your faucet can save 700 gallons per year. This leads to cost savings and environmental support.
• Native Landscaping: According to the American Society of Landscape Architects, 58 percent of members report increased client demand for native trees and plants as a means to combat biodiversity loss from climate change..⁶ Enhance the eco-friendly appeal of your home with some native plants in the front yard.

Wellness Retreat Nooks

The pandemic has had a significant impact on mental health. For example, in an effort to prioritize mental health, many people are relocating to quieter, more peaceful homes, with 22 percent of city dwellers planning a move to less congested residential areas, according to the Home Improvement Research Institute's (HIRI) 2021 Insights Summit.⁷

However, no matter where you live, you can still intrigue buyers by jumping on this trend. At-home wellness amenities, which were once viewed as luxuries, are now on many homeowners' must-have lists. Indoor spaces that function as a retreat for wellness and self-care have become extremely popular, according to HIRI.

Improve your quality of life in your home with reading nooks, spa-inspired bathrooms, and exercise or meditation spaces. Even if your house doesn't have the square footage to section off an entire room for relaxation, making simple tweaks to natural light, air purifiers, and indoor plants can help you feel better in your home now while enabling future buyers to see the opportunity for their own space.

Calming Paint Colors

Paint colors that produce a calming atmosphere will also be a key selling point in 2022. Soft earth tones and natural hues will prevail this year, including various shades of blue, green,  brown, and beige. Recent research suggests steering clear of trendy paint colors in favor of a more classic palette to bring the feel of nature indoors in a subtle and soothing way.⁸ 

In fact, the same research found that buyers are often willing to pay an extra $4,698 for a house with a light blue bathroom or an extra $1,491 for a house with a dark blue bedroom. Another crowd-pleasing hue to refresh the walls with is BEHR's 2022 paint color of the year, known as Breezeway.⁹

This shade of green with silver undertones was created to mimic sea glass. As the BEHR website describes it, Breezeway "evokes feelings of coolness and peace, while representing a desire to move forward and discover newfound passions." 

Home Safety Features

Buyers want peace of mind more now than ever before. According to a 2021 survey from the American Institute of Architects, members report seeing an increase in the popularity of these home safety features¹⁰: 

• Emergency backup power generation
• Accommodations for multiple generations
• Wider accessible doorways and hallways
• Home security monitoring equipment
• Interior ramps and home elevator features

Consider how you can build home safety features like these into the design of your home to enhance your quality of life now and attract more buyers later. For example, you could install a backup generator in the garage and sell it with the house or update your major doorways to be wider.

Before making an investment in expensive home safety upgrades, contact us. We can help you determine what will deliver the greatest ROI for your location and goals.

Designated Work Spaces 

It may come as no surprise that after the pandemic, 63 percent of homebuyers want their next house to feature room for a designated office, according to the National Association of Home Builders.¹¹ In addition, 70 percent of these buyers want the office to be at least 100 square feet (or a 10x10 room).    

If you can, consider turning a bedroom or a den into a work-from-home office. When designing the space, make it both functional and aesthetically pleasing. Position a desk near the window for natural light, install a bookshelf unit, arrange a few succulents on the work surface, and hang a few framed posters or a cork bulletin board on the wall. You want the space to foster productivity as well as be a place in your home you enjoy spending time.

When you get ready to sell, we can help you highlight your designated work space. Given the high demand for this design feature, it can help you interest more buyers and attract more competitive offers—if marketed creatively.

Luxury Kitchen Retouches

The kitchen has always been a main focal point of interior design, and that's no different in 2022. Families will always need this space to come together in their own homes.

This year's buyers want a kitchen with new upgrades and retouches, but you don't have to renovate the entire kitchen to make an impact. If you're not sure where to start, here are a few tips on how to create a kitchen that buyers will love without spending too much money on renovations:

• Repaint the kitchen, keeping the calm and nature-inspired colors in mind that are most popular right now. Taking a kitchen from dark to light by painting cabinets and walls can make all the difference.
• Update the hardware. These kitchen "accessories" stand out and add personality to an otherwise standard kitchen.
• Update light fixtures to bring in more light while also adding a fresh look and feel to the space.

Unique Accent Walls

In a recent interview with the National Association of Realtors, Brian Santos, the director of education for Fresh Coat Painters, explains that bold, unique accent walls are trendy right now.¹² An accent wall gives a home character while maintaining the calming feel of natural- and neutral-colored walls.

Santos also explains that this is part of a design aesthetic that draws inspiration from the Roaring Twenties, and it's likely to remain a sought-after home feature in 2022. Here are some bold colors to consider for your home's accent walls:

• Solid black
• Jewel or metallic tones
• Textured wallpaper
• Painted ceilings
• Built-in shelves

If you're planning to sell in the next year, talk to us before adding an accent wall. Depending on your target buyer, it may be a design feature that actually hurts your home's value. We can run a free Comparative Market Analysis on your home to help you understand what would resell best in your neighborhood.

Exterior Siding Updates

A new exterior siding refresh is one of the most affordable renovation projects you can do to help increase a home's resale value. The average cost is just $12 per square foot, but higher-end material options can push costs closer to  $50 per square foot.¹³ What's more, there are many siding materials available, from fiber-cement, brick, and wood to vinyl, metal, and stone. 

While all these options can infuse the exterior with character and add curb appeal, fiber-cement and vinyl deliver the highest ROI. In fact, according to a 2021 Cost vs. Value Report, a vinyl siding replacement can boost resale value by $11,315 (68.3 percent cost recoup), and a fiber-cement siding replacement can boost resale value by $13,618 (69.4 percent cost recoup).¹⁴

Give your home this simple, affordable, and attractive facelift before putting it on the market. If you're not sure how to get started yourself, our team can connect you with a trusted vendor to guide you through the process.

Keep These Home Design Features on Your Radar in 2022

These design features can infuse personality into your home while helping to close the deal if you plan to sell in 2022. The average buyer knows just what they're looking for in a space they plan to call home, so with some investment and foresight, you can give your house an edge over the competition—and boost resale value in the process.

However, you don't need to make all these changes to attract more buyers. We can help you determine which design features you should add to your home by sharing insights and tips on how to maximize the return on your investment. We can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact us to schedule a free consultation!

Sources:

1. Realtor -
   https://www.realtor.com/research/2022-national-housing-forecast/
2. National Association of Realtors -
   https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends
3. Deloitte -
   https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf
4. gov -
   https://www.energy.gov/energysaver/update-or-replace-windows
5. gov -
   https://www.epa.gov/watersense/about-watersense
6. American Society of Landscape Architects -
   https://www.asla.org/NewsReleaseDetails.aspx?id=60427
7. Home Improvement Research Institute -
   https://www.hiri.org/blog/4-major-home-wellness-trends-from-hiri-summit-speaker-dr-jie-zhao
8. Zillow -
   http://zillow.mediaroom.com/2021-07-15-Homes-With-Light-Blue-Bathrooms,-Dark-Blue-Bedrooms-Could-Sell-for-Up-to-4,698-More-Than-Expected
9. Behr -
   https://www.behr.com/colorfullybehr/behr-announces-2022-color-of-the-year-and-trends-palette/
10. American Institute of Architects -
    http://info.aia.org/AIArchitect/2021/0910/aia-interactive/index.html#
11. National Association of Home Builders -
    ​​https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2021/special-study-what-home-buyers-really-want-march-2021.pdf?_ga=2.188050984.1824982414.1639512139-1247360189.1639512139
12. National Association of Realtors -
    https://www.nar.realtor/blogs/styled-staged-sold/hot-home-trend-the-accent-wall-is-back
13. Forbes -
    https://www.forbes.com/advisor/home-improvement/how-much-does-siding-cost-to-install/

Remodeling Magazine -
https://www.remodeling.hw.net/cost-vs-value/2021/

It's clear that owning a home makes financial sense. But lately, the emotional side of what drives homeownership is becoming increasingly important.

No matter the living space, the feeling of a home means different things to different people. Whether it's a familiar scent or a favorite chair, the feel-good connections to our own homes can be more important to us than the financial ones. Here are some of the reasons why.

1. Owning your home is an accomplishment worth celebrating

You've put in a lot of work to achieve the dream of homeownership, and whether it's your first home or your fifth, congratulations are in order for this milestone. You've earned it.

2. There's no place like home

Owning your own home offers not only safety and security but also a comfortable place where you can simply relax and unwind after a long day. Sometimes that's just what we need to feel recharged and truly content.

3. You can find more space to meet your needs

Whether you want more room for your changing lifestyle (think: working from home, dedicated space for a hobby, or a personal gym) or you simply prefer to have a large backyard for entertaining, you can invest in a home that truly works for your evolving needs.

4. You have control over renovations, updates, and your style

Looking to try one of those decorative wall treatments you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Maybe you want to create an entire in-home yoga studio. You can do all of these things in your own home.

Whether you're a first-time homebuyer or a repeat buyer who's ready to start a new chapter in your life, now is a great time to reflect on the non-financial factors that turn a house into a happy home. Reach out to a trusted real estate professional to help guide you.

Resource: Keeping Current Matters

Whether you are new to the home-buying process or a seasoned homeowner selling your home, you will likely be faced with a flurry of details and big decisions, making the process seem overwhelming.

We're here to help. At Montague, Miller & Co., we take pride in our ability to educate and guide our clients to successful outcomes through professionalism and honest counsel. As a three-generation family company, we've been serving Charlottesville and surrounding communities for over 70 years.

Our Montague Miller & Co REALTORS® live and work in your community. We have a breadth of experience navigating competitive markets to help you find your perfect home, or sell your home for the best price, all the while ensuring the process is as seamless and enjoyable as possible.

Although Montague Miller has the distinction of being a local, independent company, it has the advantage of being able to offer global services on our client's behalf through our relationship with Leading Real Estate Companies of the World (LRE). LRE offers world-class resources and referral connections to our clientele, giving them a truly exceptional real estate experience.

Whether you're buying or selling a home locally or globally, searching for investment opportunities, or just have questions, we're here to help you make your next move.

Connect with one of your local Montague Miller & Co real estate professionals here. 

In 1963, Martin Luther King, Jr. inspired a powerful movement with his famous "I Have a Dream" speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where we can grow and flourish.

If you're dreaming of buying a home this year, start by connecting with a local real estate professional to understand what goes into the process. With a trusted advisor at your side, you can then begin to answer the questions below to set yourself up for homebuying success.

1. How Can I Better Understand the Process, and How Much Can I Afford?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.

Keep in mind, before you start the process to purchase a home, you'll also need to apply for a mortage.  Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They'll want to see how well you've been able to minimize past debts, so make sure you've been paying your student loans, credit cards, and car loans on time. If your financial situation has changed recently, be sure to discuss that with your lender as well. Most agents have loan officers they trust and will provide referrals for you.

According to ConsumerReports.org:

"Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget."

2. How Much Do I Need for a Down Payment?

In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you'll need for a down payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down.

If you're concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says: 

"Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded."

Before you know it, you'll have enough for a down payment if you're disciplined and thoughtful about your process.

3. Saving Takes Time: Practice Living on a Budget

As tempting as it is to pass the extra time you may be spending at home these days with a little retail therapy, putting that extra money toward your down payment will help accelerate your path to homeownership. It's the little things that count, so start trying to live on a slightly tighter budget if you aren't doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score.

A survey of millennial spending shows, "68% reported that shelter in place orders helped them save for their down payment." Danielle Hale, Chief Economist at realtor.com, also notes:

"If there is any silver lining to the current economic landscape, it's that mortgage rates are hanging around record lows…Additionally, shelter-in-place orders helped many who were fortunate enough to keep their jobs save for a down payment — one of the largest hurdles of buying a home. The combination of low rates and the opportunity to save is enabling many millennials to move up their home buying timeline."

While you don't need to cut all of the extras out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.

Bottom Line

If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. To determine the steps you should take to start the process, connect with a local Montague Miller & Co real estate professional today. 

research by Keeping Current Matters

Making Memories With Fall Leaves

Our Golden Ash Tree dropped its leaves today... yes, all in one day!

When the kids were young, this event called for a festive time beginning with a long day of raking huge amounts of golden leaves into piles. Then it took several more days for pets and children to tire of playing "hide and go seek" in their huge forts. Before it dared to rain on our fluffy mounds, we rolled the leaves onto tarps and dragged them into garden beds where the leaves worked thier magic throughout the winter!

Our children are grown now, with yards of their own. However, on this perfectly beautiful fall day, with a new leaf blower in hand, I took great pleasure in revisiting memories of assorted hand rakes, children's laughter and smiling faces and playful pets.

Best Wishes for pleasant fall days with your family! Here are some tips on how to use your leaves this fall...

Why Are Leaves Valuable to the Gardener?

It's simple. When incorporated into soil, fall leaves:

• Add nutrients, including phosphorous and potassium
• Increase the soil's microbial life
• Boost its water-holding capacity
• Improve its structure, known as tilth

And did I mention that leaves are free? It takes little effort on your part to get them working for you, so instead of sweeping them to the curb, here are several ways to use leaves in your garden.

Protect Outdoor Potted Plants

When the weather turns cold and potted plants (the hardy ones, not houseplants or tropicals, which must be brought indoors) go dormant, pick a sheltered place on the north, west or east side of your house. Cluster the pots together against the house, ideally beneath an overhang. Pile dried leaves over, under and between the entire grouping of pots.

If the area is windy, corral the pots with chicken wire so the leaves won't blow away. Pile the leaves inches deep, covering the pot and as much of the plant as possible. Under this insulating blanket, both plants and pots should come through the winter just fine. With this method, even terra-cotta pots can stay outdoors, as long as water can't get into them and freeze.

Make Leaf Mold

Leaf mold is simply wet leaves that have decomposed into a rich, black, soil-like substance that makes a perfect mulch for plants. Pile the leaves in a spot where they're out of the way and won't blow away. Or make large (3- or 4-foot) circles of chicken wire, 3 feet high, and pile the leaves in them. Wet the leaves as you go so they'll rot. Turning the pile a few times during the winter will accelerate the process.

Mix Leaves — Shredded or Not — Into a Compost Pile Now, Where They'll Break Down Over Winter

Even better: Stockpile dried leaves, in garbage bags or piled in that out-of-the-way place, for summer. In warm weather there's an abundance of succulent green material (nitrogen) for your compost pile. But to keep the composting process aerobically working, and not rotting, it needs lots of "browns" (carbon), in the form of dried material.

Add Them to Vegetable Beds

You can incorporate whole or chopped leaves into any cleared-out vegetable beds. They will mostly decompose over the winter, then in spring you can mix in whatever is left. If you don't want to see leftover leaves in your beds, shred them first.

Don't have a shredder? A garbage can and a string trimmer will work. Use a 55-gallon garbage can. Fill it three-quarters of the way with leaves. Put the string trimmer in, turn it on and move it through the layers of leaves. Be sure to wear eye and ear protection.

Mow Them Into the Lawn

Then there's the easy way but much less fun for the kids- just mow them with your mower. Together, shredded leaves and grass clippings add carbon (leaves) and nitrogen (grass) to the soil, reducing your need to add store-bought fertilizers later.

Memories of Fall contributed by Carol Solis, always enjoying the country life and family fun!

If you have been putting off outside maintenance on your home because of the summer heat, not to worry, the weather has changed! Fall is a great time to do dive into outdoor work and start preparing your house for winter and the cold weather ahead. Here are a few things you should be doing to make sure your home is ready for the changing colder temperatures ahead. 

1. Clean Your Gutters Make sure your gutters are clear of leaves and debris so water doesn't pool and cause damage to your home. 
2. Check For Leaks and Water Damage Give your home a good look over to make sure there are no leaks, potential leaks, or water damage that you may have missed. Make sure to look thoroughly at your roof and attic to make sure there are no problems. 
3. Winterize Your Outdoor Faucets Close off shut-off valves for outside faucets and fully drain the line of all water so they don't freeze and burst when the temperature drops. Consider using a cover on outdoor faucets. 
4. Maintain Your Home's Heating System Make sure your filters are being replaced regularly and schedule a service check if you are due or haven't done one in awhile. Make sure your heating system is ready to get you through the cold winter months without issues. 
5. Fireplace Maintenance If you have a fireplace, schedule a chimney sweep to make sure your fireplace is clean and ready to go this winter. Also, make sure to check your flue and vents before using the fireplace for the first time. 
6. Reverse Your Ceiling Fans Reversing the rotation of your ceiling fans to clockwise makes heating your home more efficient. 
7. Drain Your Hot Water Heater Draining your hot water heater helps flush sediment and debris which can cause your hot water heater to work less efficiently. Draining the hot water heater yearly may help your system last longer as well. 

If you have questions about anything on this checklist or if you are looking for a professional to help you with any of these services, get in touch with one of our Montague Miller & Co real estate professionals who will help answer your questions.

The much-welcomed summer season can bring with it some unwelcomed problems- humidity and mold! It's always easier to prevent than to remediate, so here are 10 tips to help set you up for success in efforts to combat mold in your home.

1. Control Indoor Climate

Mold problems often emerge during hot, humid summers when you're tempted to play with the air conditioner. But set the thermostat too high, and the air conditioner won't dehumidify your air effectively; set it too low, and you create cold surfaces where water vapor can condense. To prevent moisture problems and maximize energy efficiency, set the thermostat at 78 degrees F.

2. Monitor Humidity

An indoor humidity monitor will help you keep track of moisture levels that, ideally, fall between 35% and 50% relative humidity; in very humid climates, at the height of summer, you may have to live with readings closer to 55%.

But if you reach 60% relative humidity, it's time to look for the source of the added moisture; above 70% relative humidity, certain species of mold can begin growing.

Indoor humidity monitors start at less than $20; more sophisticated models that simultaneously and remotely track several rooms can climb to $200.

3. Eliminate Clutter

Cast a critical eye on household clutter, and pare down your stuff. Clutter blocks airflow and prevents your HVAC system from circulating air. Furniture and draperies that block supply grilles cause condensation. All this moisture creates microclimates in your home that welcome and feed mold growth.

So throw out things you don't love or don't use. Push furniture away from vents and grilles to keep air circulating. On humid, still days, run a couple of fans to keep air moving.

4. Shut Windows and Doors When AC Is On

When you open windows and doors, you let air conditioning escape, waste money, and invite humid air into your cooler home. This causes condensation, which mold loves. So keep doors and windows shut when the AC is humming.

Also, maintain your home at around 80 degrees when you're on vacation or at work. Too often, we bump the thermostat up to 85 degrees or turn off the AC when we're away. This raises temperature and humidity, which creates the ideal home for mold.

5. Properly Size Your AC Unit

Make sure your air-conditioning unit is properly sized for your house. If it's too small, the unit will run constantly, elevating costs but not the temperature; too big, and the unit will constantly start and stop, which wastes energy, too.

Install an HVAC unit that's just right. For guidance, call an HVAC professional or consult Energy Star's square footage/AC capacity chart.

6. Evaluate Your AC

If you get a high humidity reading of 60% or more, make sure your air conditioner is doing its job.

• Is it set to the proper temperature?
• Is it cycling on and off periodically?
• Does it blow cold air when it reaches the set point?
• Are the coils clean?

Inspect the condensate drain pipe (the narrow white pipe sticking out the side) to make sure it's dripping regularly. If it isn't, the pipe is blocked and water may be accumulating inside the unit -- or on your floor. If you suspect a problem, call your HVAC professional. To prevent blockage and mold buildup, pour a cup of bleach mixed with water down the drain annually.

7. Look for Standing Water

If the air conditioner isn't the issue, search for standing water or chronic dampness that's increasing indoor humidity and providing a lovely environment for mold. 

Check for puddles or dampness around hot water tanks, sump pumps, freezers, refrigerators, basement doors, and windows. Inspect crawl spaces for ground water dampness or foundation leaks.

8. Cover Your Crawl Space Floor

Groundwater seeping into crawl spaces can add gallons of moisture vapor into your house every day. The simplest defense is to cover crawl space floors with a plastic vapor barrier -- 6 mil polyethylene (landscapers' plastic) -- that traps moisture in the ground.

If you regularly crawl in your crawl space, use a heavier plastic that won't rip as easily: Some 20 mil plastic coverings are on the market.

9. Add a Dehumidifier

A dehumidifier removes excess moisture from the air.

You can buy a whole house dehumidifier ($1,100-$1,800) that attaches to your furnace, treats air throughout the house, and connects to a drain so you never have to empty a tank. If you live in a very humid area, a whole-house system is the way to go.

If you have occasional bouts of dampness and musty smells, a portable dehumidifier will suffice ($150-$200).

Most models have an auto-shutoff that keeps the unit from overflowing when the storage tank is full. Some portables have a hose hookup that automatically sends water into a nearby floor drain.

10. Call a Professional

For peace of mind, if you can't find the moisture problem on your own, or how to correct a problem, call a home inspector or indoor air quality consultant. The American Society of Home Inspectors or the Indoor Air Quality Association is a good place to start if you don't have a recommended professional. 

One of the bright spots of the 2020 real estate market is the growth in equity homeowners are experiencing across the country. According to the recently released Homeowner Equity Insights Report from CoreLogic, in nearly every state there was a year-over-year first-quarter equity increase, averaging out to a 6.5% overall gain.

The report notes:

"CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year." (See map below):

This means that "In the first quarter of 2020, the average homeowner gained approximately $9,600 in equity during the past year."

That's a huge win for homeowners, especially for those looking to sell their houses and make a move this summer. Having equity to re-invest in your next home is a major force that can make moving a reality, especially while buyers are expressing such a high demand for homes to purchase.

Frank Martell, President and CEO of CoreLogic addresses the potential long-term outlook and how homeowners will likely fare much more positively through the current recession  than many did during the last one:

"Many homeowners will experience a recession during their lifetime, and it is reasonable to compare the current recession to those in the past. But the comparison is not apples to apples — every recession is different. Primary drivers of the Great Recession were an overbuilt housing stock, risky mortgages and the collapse of home prices, creating a massive increase in negative equity that proved difficult to recover from. Today's housing environment has low vacancy and delinquency rates and a large home equity cushion."

Now is a great time to consider leveraging your equity and making a move, especially while buyer interest is high. Reach out to a Montague Miller & Co real estate professional to explore your equity position and help make your next move a reality. 

With interest rates hovering at near historic lows, now is a great time to look back at where they've been, and how much they've changed over time.

• According to Freddie Mac, mortgage interest rates are currently hovering near a five-decade low.
• The impact your interest rate has on your monthly mortgage payment is significant. An increase of just $20 dollars in your monthly payment can add up to $240 per year or $7,200 over the life of your loan. Maybe it's time to lock in now while rates are still low.

Sellers are already rooted, having lived in their current home an average of 10 years, NAR's report shows. Sellers are equity-rich and rely on real estate professionals for guidance now more than ever before, according to the National Association of REALTORS®' 2019 Profile of Home Buyers and Sellers. Equity gains prove a boon to sellers. Higher home prices have translated into faster appreciation for homeowners.

Snapshot of Todays Sellers

• Average age: 57
• Median household income: $102,900
• Living situation: 72% married; 16% single females
• Tenure in the home: 10 years (up from 6 years from 2001 to 2008)
• Median length of time on the market: three weeks
• Price sold: Median of 99% of the list price
• Median equity: $60,000 higher than what owner originally paid at purchase
• Incentives for buyers: 34% offered incentives, such as home warranty policies or assistance with closing costs
• Most common method for finding a real estate agent: Referrals from friend, neighbor, or relative, as well as repeat business
• Sellers' high-priority tasks for agents: Market the home (21%); sell the home within a specific time frame (20%); price the home competitively (19%); help fix the home to prepare it for sale (16%); and find a buyer (13%).

• 
• Published in National Association of REALTORS®' 2019 Profile of Home Buyers and Sellers

Americans Rank Real Estate Best Investment for 6 Years Running!

Real estate has outranked stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long-term investment among Americans for the last 6 years, according to a May 2019 Gallup survey report!

As you can see...

Stock owners are more positive about real estate than stocks as an investment.

Of the 4 listed, real estate is the only investment you can also live in!

Some are attempting to compare the current housing market to the market leading up to the "boom and bust" that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.

However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.

A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.

Today is radically different!

There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).

However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.

Bottom Line

We will not have a glut of inventory like we did back in 2008 and home values won't come tumbling down. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually).

Originally published by Keeping Current Matters August 16, 2018

You May Be Surprised!

CoreLogic's latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.

"U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year."

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic's Chief Economist, explains:

"Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years."

He also believes this is a great sign for the market in 2018, saying:

"Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years." 

This is great news for homeowners! But, do they realize that their equity position has changed?

A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic's report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).

The study also revealed that only 37% of Americans believe that they have "significant equity" (greater than 20%) when in actuality, 83% do!

This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.

Fannie Mae spoke out on this issue in their report:

"Homeowners who underestimate their homes' values not only underestimate their home equity, they also likely underestimate:1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes."

Bottom Line

If you are one of the many Americans who is unsure of how much equity you have built in your home, don't let that be the reason you fail to move on to your dream home in 2018! Meet with a Montague Miller & Co REALTOR® today who can help you evaluate your situation and assist you along the way!

Photo by Steve Zamek

Invite a Family of Bluebirds to Share Your Yard

A peaceful farm in the country, just minutes east of Charlottesville, is home to our horses and an ever growing population of deer, squirrels, foxes, groundhogs, beaver, rabbits and just about every bird native to Central Virginia.  Even Canada geese who fly to and from neighboring ponds call it home, as well as titmice, house wrens, chickadees, and nuthatches, woodcocks, woodpeckers and especially our good friends, Eastern Bluebirds.

This seasonally warm first weekend in March beckoned bluebird scouts back for a brief visit in quest of making sure last year's nest boxes had been cleaned and readied for their return migration from North Carolina later this month.

But you don't have to live on a farm or even have much acreage to invite a family of bluebirds to share your yard, even if you live in town. Birds adapt quite well, in fact, "If You Build It, They Will Come"!

In more developed areas, bluebirds are likely to be found around large open lawns, quiet roadways, old railroad paths, parks, cemeteries, golf courses, new housing developments, and neighborhoods on the edge of cities. They usually don't hang out in heavy woods or city centers. So, rest assured, your yard will do just fine! But beware… your invited guests may return year after year!

When installing a bluebird house, consider:

• Location: While scattered trees or shrubs are fine, choose a fairly open spot away from woods.
• Mounting: A pole or fence post is ideal, especially if you can add a baffle to keep out predators such as cats, snakes, and raccoons. Mount the house at around 5' high, so that you can easily reach it to monitor and clean.
• Orientation: Ideally, face the opening toward a safe perch, such as a small tree or fence. Also try to face it away from prevailing winds, and away from midday sun in hot climates. If you are installing the house near a road, face it parallel to the road, so the birds won't fly out directly into traffic.
• Spacing: Bluebirds are competitive and usually claim two or three acres, so be sure their houses are widely spaced. Ideally, Eastern bluebird houses should be 100-150 yards apart.
• Organic Garden: Since bluebirds eat insects, they can provide natural insect control, but avoid areas with heavy application of pesticides.

 The Challenge of Competitors:

One of the biggest challenges for bluebirds is the threat of other birds competing for the nesting space. European starlings and house swallows pose the largest threat to bluebird nesting, and these non-native birds will attack bluebird nests and destroy the eggs.

You can reduce the risk by making sure your bluebird house has the right size opening by purchasing (try Tractor Supply, Lowes or Amazon) or making it yourself using bluebird specific dimensions. Here is a link to How To Build Bluebird boxes by Audubon's specifications.

These gorgeous birds are so sweet and charming, swooping from tree to post to guard their nests and checking you out. And if their stunning beauty weren't enough, they're also great for natural summer insect control!

Enjoy your new neighbors and many thanks for helping reestablish our Eastern bluebird's diminishing natural habit! 

By Carol Solis, Montague Miller & Co. When not assisting REALTORS® with their marketing needs, Carol can be found "on the farm" with her family enjoying everything country living has to offer.

If you imagine playing golf in cool crisp mountain air in the middle of summer, or walking with your clubs over easy rolling picturesque hills, look no further. We have it all here in Central Virginia!

Golf magazines have ranked Williamsburg and the Virginia mountains among the 50 best golf destinations in the world. From Virginia's beaches to the Allegany Mountain tops, you will encounter a diverse menu of golf courses in the state's list of 220 public courses.

Central Virginia has some of the country's best classic designs and modern layouts. One of Virginia's great mountain courses is 40 miles west of Charlottesville, The Cascades Course at the Omni Homestead Resort in Hot Springs.  The Cascades is regarded as one of the finest mountain golf course destinations in the country and offers challenging links set against the backdrop of Virginia's breathtaking Allegheny Mountains.  American professional golfer and one of the top players in the world for four decades, Sam Snead,  launched his career on this well known Virginia mountain golf course. 

A few minutes east Charlottesville is Keswick Hall's Full Cry, a modern wonder designed by golf course designer, Pete Dye. Full Cry combines modern golf course architecture and the bucolic hunt country of Virginia. The brand new 18 traverses the scenic rolling terrain and appeals to every level of golfer. 

One of the area's most enjoyable courses just 20 minutes east of Charlottesville, is Spring Creek Golf Club, rated by Golf Week as the "Top Ranked Residential Public Course in Virginia."

Golf is played throughout Virginia's scenic rural areas and quaint towns and no matter where you find yourself, it's a sure bet you're just a few miles from a great golf experience. Plus, there is plenty to do beyond the course. Be sure to ask your Montague Miller REALTOR® where to start!

Take your time and enjoy the rolling hills and cool mountain air while experiencing favorite everyday links treasures in and around Charlottesville!

Charlottesville area: Meadowcreek, Farmington, Birdwood Golf Course at Boar's Head, Full Cry and Glenmore in Keswick, Lake Monticello in Palmyra, Old Trail in Crozet, Spring Creek in Gordonsville, The Highlands in Ruckersville, Green Hills in Standardsville, Waynesboro Golf  in Waynesboro.

Amherst County: Poplar Grove, Shadow Ridge, Winton in Amherst, Colonial Hills and Ivy Hill in Forest, The Vista Links and Glen Maury Park in Buena Vista, Devils Knob in Wintergreen

Madison and Orange County: Greene Hills in Standardsville, The Highlands in Ruckersville, Shoolhouse Nine in Sperryville and Caverns in Luray, Tanyard in Louisa, and Meadows Farms in Locust Grove

CoreLogic released their 2015 2nd Quarter Equity Report which revealed that 759,000 properties had regained equity in the last quarter. That means that 91% of allmortgaged properties (approximately 45.9 million) are now in a positive equity position. Anand Nallathambi, president and CEO of CoreLogic, reported:

"For much of the country, the negative equity epidemic is lifting. The biggest reason for this improvement has been the relentless rise in home prices over the past three years which reflects increasing money flows into housing and a lack of housing stock in many markets."

Obviously, this is great news for the financial situation of many homeowners.

But, do they realize their equity position has changed?

A recent study by Fannie Mae suggests that many homeowners are unaware that their equity position has changed…in some cases dramatically. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, only 9% of homes are in that position.

The study also revealed that, though 69% of homes had "significant equity" (greater than 20%), only 37% of Americans realize it.

This means that 32% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Fannie Mae spoke out on this issue in their report:

"Homeowners who underestimate their homes' values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes."

Bottom Line

Every homeowner should be aware of the true equity in their house and also realize the opportunities that go along with it. If you are unsure of the savings you currently have built up in your home, contact a real estate professional to help ascertain that number. You may be surprised.

As a seller, you will be most concerned about 'short term price' – where home values are headed over the next six months. As a buyer, you must be concerned not about price but instead about the 'long term cost' of the home.

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about three-quarters of a percentage point over the next twelve months.

According to CoreLogic's most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2% predicted by CoreLogic over the next twelve months:

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 3.9% by the end of 2015, 3.4% in 2016 and 3.1% in each of the following four years (as shown below). That means the average annual appreciation will be 3.2% over the next 5 years.

The prediction for cumulative appreciation rose from 18.1% to 21.6% by 2020. Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 13.8%.

Bottom Line

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

In the Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

• Interest rates have remained low and even though home prices have appreciated around the country, they haven't greatly outpaced rental appreciation. "In the past year, these two trends have made homeownership even more affordable compared with renting."
• Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven't been that high since 1989.

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, lock in your housing cost with a mortgage payment now.

There are many reasons, both financial and non-financial, that homeownership remains an important part of the American Dream. One of the biggest reasons is the fact that it helps build family wealth. Recently, Freddie Mac wrote about the power of home equity. They explained:

"In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home's appreciation. In a nutshell, your money is working for you and contributing toward your financial future."

They went on to show an example where a person bought a home for $150,000 with a down payment of 10% ($15K), resulting in a loan amount of $135,000. The buyer secured a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance).

The chart below demonstrates the home equity built after 7 years of making mortgage payments and assuming the historic national average of 3% per year home appreciation:

And that number continues to build as you continue to own the home.

Merrill Lynch published a report earlier this year that showed the average equity homeowners have acquired by certain ages.

Bottom Line

Home equity is important to building wealth as a family. Referring to the first scenario above, Freddie Mac explained:

"Now, if you continued to rent, and made the same payment of $684.03 per month, you'd have zero equity and no means to build it. Building equity is a critical part of homeownership and can help you create financial stability."

Put your housing cost to work for you and your family. Meet with a real estate professional today to explore your options.

Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner's net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a recent Forbes article the National Association of Realtors' (NAR) Chief EconomistLawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun's prediction:

Put Your Housing Cost to Work For You

Simply put, homeownership is a form of 'forced savings'. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord's net worth.

The latest National Housing Pulse Survey from NAR reveals that 80% of consumers believe that purchasing a home is a good financial decision. Yun comments:

"Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn't be overlooked."

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you through homeownership, meet with a real estate professional in your area who can guide you through the process.