We live in a DIY world. If there is a video online for how to do something, there’s a good chance you can figure out how to do it. While saving money by doing certain projects yourself can be rewarding in many different ways, there are some projects that should be left to the professionals. Unless you have training in specific fields, these 5 things usually require a professional contractor:
Electrical Wiring
Without any electrical experience, you run the risk of causing damage to both yourself and your entire electrical system. Even if you do shut off the power before messing with any wiring, there can still be many issues that arise afterwards – including electrical fire. Avoid the danger and call an electrician!
Wall Removal
Knocking down a wall can sound like a fun idea. Even if you were getting excited to release any anger on that wall in your home, this is a time when it is best to call a professional. Walls are a key component in maintaining the integrity of your home and it’s structure. If you accidentally knock down a load-bearing wall, you could cause catastrophic damage.
Foundation Alteration
The name of the structure itself should already make you proceed with caution. Your foundation is the most integral part of your home, and messing with it without experience could land you in a very tough spot.
Flooring
While some flooring can easily be done alone, some of the bigger projects should be left to the professionals. If leveling the floor is part of the project, it may be time to call someone in. Having a floor that isn’t level can cause you headaches for years to come.
Plumbing
Just like electrical projects, plumbing projects can be extremely complicated. When not done correctly, you can end up with burst pipes, flooding, and interior water damage. Save the stress and call a plumber!
If you’re thinking about buying or selling a home, you might have heard that it’s tough right now because mortgage rates are higher than they’ve been over the past few years, and home prices are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
The National Association of Realtors (NAR) explains how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The red dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
According to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you’re a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality You may be wondering how other homebuyers and sellers are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local real estate agent like Scott and Mary Tynell. Great agents are helping other people just like you navigate today’s market and the current affordability situation, and their insight is invaluable right now.
Scott and Mary Tynell will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean broadening your search, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the affordability challenges today.
Bottom Line You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of Scott and Mary Tynell skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect.
When your offer is not accepted, it can feel disappointing, but don’t let it discourage you! Here are some steps you can take:
Stay positive: Remember that not every offer will be accepted. This is a normal part of the real estate process. Keep a positive mindset and stay motivated.
Request feedback: Contact the listing agent for feedback on why your offer was not accepted. This information can help you improve future offers and understand the seller’s concerns or preferences.
Analyze the market: Take a closer look at the area is current market conditions and comparable sales. This analysis can help you evaluate if your offer was competitive or if you need to adjust your strategy for future offers.
Review your offer: Assess your offer to see if any areas could be improved. Consider factors such as the purchase price, contingencies, closing timeline, or other terms that may have influenced the seller’s decision.
Stay in touch: If you’re still interested in the property, let Scott and Mary Tynell know you are open to backup offers. Sometimes, the initial offer may fall through, and you could have another opportunity.
Keep searching: Do not put all your eggs in one basket. Continue exploring other properties on the market that meet your criteria. Another great opportunity may be just around the corner.
Rely on your real estate agent: Lean on Scott and Mary Tynell a trusted real estate agent for guidance and support. They can provide valuable insight, help you refine your strategy, and assist you in finding the right property.
Remember, the real estate market is dynamic, and offers can be accepted or rejected for various reasons. Stay resilient, learn from each experience, and stay focused on finding the perfect home for you. Good luck!
Seasonality has a significant impact on the real estate market, influencing both buyer and seller behavior. Here are some key points to consider when discussing the impact of seasonality:
Demand and Inventory: The number of buyers and sellers in the market fluctuates throughout the year. Generally, the spring and summer months see increased activity, as families prefer to move during warmer weather and before the new school year begins. This results in higher demand and more inventory during these seasons.
Pricing: Seasonality can also affect home prices. During the peak season, when there is higher demand, sellers may be able to command higher prices for their properties. Conversely, sellers may need to adjust their prices during the off-peak season to attract buyers.
Competition: The level of competition among buyers and sellers can vary based on the season. In a seller’s market, buyers may face more competition and multiple offer situations when demand exceeds supply. On the other hand, in a buyer’s market, when there is an excess inventory, sellers may need to be more competitive in pricing and marketing their properties.
Market Trends: Real estate market trends can vary throughout the year. For example, buyers may surge during holidays or summer in areas with vacation or second-home markets. Additionally, areas with strong university or college presence may experience increased rental demand during the start of the academic year.
Regional Differences: It’s important to note that the impact of seasonality can differ by region. For example, in colder climates, the winter months may experience a slowdown in real estate activity due to weather conditions. Conversely, winter may be considered the peak season in warmer climates.
Understanding the impact of seasonality on the real estate market can help buyers and sellers make informed decisions. Scott and Mary Tynell are real estate professionals who possess a keen awareness of these market patterns. They adeptly adjust their strategies to maximize success in any given season, demonstrating their mastery of the dynamic real estate landscape.
Adjustable-rate mortgages (ARMs) can be a valuable tool for homebuyers, and there is no need to fear their return. Here are a few reasons why:
Initial Lower Interest Rates: ARMs typically offer lower interest rates than fixed-rate mortgages (FRMs) during the initial fixed-rate period. This means lower monthly payments, which can benefit buyers who plan to sell or refinance within a few years.
Flexibility: ARMs offer flexibility in terms of loan options. Depending on the lender, you can choose the length of the initial fixed-rate period, typically ranging from 3 to 10 years. This allows you to tailor the loan to your specific needs.
Potential for Savings: Your monthly payments can also decrease if interest rates decrease after the initial fixed-rate period. This can result in significant savings over the life of the loan.
Short-Term Ownership: An ARM can be a smart choice if you plan to own the property for a relatively short period. For example, knowing you’ll be moving within five years, you can take advantage of the lower initial interest rate without worrying about potential increases.
Rate Caps: ARMs have rate caps that limit the interest rate’s increase during each adjustment period and over the life of the loan. This offers protection against drastic rate hikes and helps you budget accordingly.
Market Factors: The return of ARMs does not necessarily indicate an impending housing market crash. Lenders offer ARMs because they believe the market will remain stable and interest rates won’t skyrocket.
However, it’s important to consider your financial situation and long-term plans before choosing an ARM. If you’re uncertain about interest rate fluctuations or plan to stay in the property for an extended period, a fixed-rate mortgage may be a safer option. Consulting Scott and Mary Tynell can help you make an informed decision based on your specific circumstances.
Selling your house when inventory is low can offer several perks for homeowners. Here are some of the advantages:
Increased demand With fewer homes available on the market, there is typically increased competition among buyers. This can lead to multiple offers, bidding wars, and potentially higher sale prices for sellers.
Faster sales process When inventory is low, homes tend to sell more quickly. This is because buyers have limited options and are often motivated to make a purchase sooner rather than later. You might experience a faster sales process and avoid prolonged listing periods as a seller.
Favorable negotiating position Low inventory can give sellers an advantage during negotiations. With limited options, buyers may be more willing to meet your asking price or make concessions to secure the property. This can put you in a stronger position to negotiate favorable terms.
Less competition from other sellers In a low-inventory market, there are typically fewer sellers competing for buyers’ attention. This means your home may stand out more, attracting serious buyers who are actively searching for properties. This can increase your chances of receiving quality offers.
Potential for higher sale prices When supply is low and demand is high, it often leads to an increase in sale prices. With multiple buyers interested in your property, you may receive offers that exceed your initial expectations, resulting in a higher return on your investment.
Less time and effort spent on marketing In a low-inventory market, the demand for homes often outpaces the supply. As a result, you may not need to invest as much time and effort into marketing your property to attract buyers. This can save you valuable time and resources during the selling process.
It’s important to note that the perks of selling in a low-inventory market can vary depending on your specific location and market conditions. It’s always a good idea to consult Scott and Mary Tynell, real estate professionals who can provide tailored advice based on your circumstances.
Homeownership has plenty of perks. You can make changes whenever you want, but that also means you are responsible for making any fixes you want (or need)! Instead of calling the local handyman every time something small goes awry, you can try out these quick fixes for common bathroom issues that arise while saving yourself some money along the way.
1. Shifting Toilet Seat
Is your toilet seat wobbling every time you sit down? Sometimes, there are visible bolts to tighten, but that just doesn’t fix the issue. Many are unaware that you can actually purchase a toilet seat tightening kit. Home improvement stores will carry an inexpensive kit, usually around $10. Rather than investing in a new toilet seat, you can save time and money by picking up a kit the next time you’re out.
2. Slippery Shower
There are two main options to remedy a slippery shower. If you have a geriatric family member, a shower chair may be the best option to provide security. These chairs can be as affordable as $20 and can offer peace of mind when it comes to the safety of your loved ones. If chairs aren’t for you, a non-slip bath mat will keep you from falling in the shower and cost as much as a few coffees.
3. Clogged Shower Head
Do you normally have great water pressure, but now your shower feels like a slow leak? Your shower head is likely clogged from a build up of minerals in your water. Instead of calling the plumber or heading to the store to buy toxic chemicals, you can use ingredients already in your home to fix your problem. All you need to do is fill a sandwich bag halfway full with white vinegar, submerge the shower head into the vinegar in the bag, and tie the bag to the piping and allow the head to soak overnight. When you remove the bag, you should wipe the head to remove any excess and then your shower should be back to normal pressure.
4. Slow Drain
Consider trying a Zip-It tool. You can find one at your local hardware store for around $5, but you must be willing to deal with a little gunk. The tool is placed in the drain and pulls out whatever is clogging it, usually hair and soap. If you can get past that, you’ll save yourself the price of a plumber.
5. Leaking Water Valve
Instead of heading to the store for a replacement water supply valve, try tightening the packing nut on the valve. A quick video search online will show you which nut to tighten, and it will only take a few minutes. Now you’ve saved time and money!
While these are easy fixes to do yourself, selling your home isn’t nearly as easy to DIY. Call Scott and Mary Tynell today if you are ready to put your home on the market!
Living in an apartment or rental home does have its perks: You can test out different neighborhoods and locations, you have the flexibility to move, and you have access to great amenities like a gym or pool. But there’s a reason that owning a home, rather than renting one, is a highly desired achievement.
Maybe the thought of having your own place has only recently crossed your mind, or maybe you are regularly saving a chunk of your paycheck for that future down payment. No matter where you are in the process of considering homeownership, here are the unmistakable signs that you’re ready to buy your first home.
1. You Want to Get to Know Your Neighbors
Because renters tend to live in one apartment for very little time, it can be difficult to meet people who live in your building. But when you buy a home and are more invested in your community, it is easier to forge lasting friendships.
2. You Want to Customize Your Space
Many rental communities have limits on what you can customize in your unit. You may be able to paint your walls a different color, but you may not be able to replace the standard countertops or appliances in your apartment.
3. You Want More Space or Amenities
You daydream about having a home with a large kitchen, dining room, basement, garage, or maybe even a home office or bonus room for your hobbies.
4. You Regularly Drive by Your Favorite Neighborhoods
You have a list of at least three communities (or maybe even houses) you would love to live in when you’re ready to buy a home. You might even attend an open house or two.
5. You’re Eager to Put Down Roots
A home is more than a financial investment. It is your space, a private retreat, and the start of a new chapter in your life. You’ll love making lasting memories with your new neighbors and enjoying all the amenities near your home.
6. You’re Constantly Browsing Home Improvement Sites
Instead of scrolling through social media, you are scrolling through home decor websites or binge-watching HGTV. You now have dozens of ideas for decorating everything from the bathrooms to the entryway.
7. You Have Money Saved Up for a Down Payment
A down payment is essential to buying the home of your dreams. But once you see your savings account grow, you know your new home is within reach.
Buying a home is a team sport, especially when buyers face the affordability challenges they face now. Volatile interest rates and tough competition for a limited supply of homes pose unique issues for home shoppers. If you have been writing offer after offer even competitive offers over the asking price and still not getting anywhere, it could be time to change tactics.
Strategies tied to mortgage products and seller incentives can help buyers, even in situations involving cash buyers or shoppers offering above the list price. These tactics won’t apply to every situation. Still, they offer buyers an idea about the adjustments to their offers or financing that can make the difference between getting the keys or attending another open house. It is important to note that every real estate market and buyer/seller transaction is unique and results may vary.
1. Offer a partial appraisal waiver An appraisal establishes the current value of a home and is used by lenders to determine how much they’re willing to lend buyers for a given home. Buyers who make an offer on the house usually include an appraisal contingency that lets them cancel the deal without a penalty if the house does not appraise for the agreed-upon price.
Buyers in competitive markets can be tempted to waive appraisals, but doing so could require them to bring more money to the table at closing if there’s a gap between the price they offered on a home and what an expert appraiser thinks it’s worth. This is because a mortgage is tied to what the appraiser determines the home is worth. Anything over that amount is the buyer’s upfront responsibility.
Instead of waiving an appraisal altogether, some clients agree to pay a specified amount over the negotiated sales price if there’s a gap between the asking price and the appraised value. That way, the buyer can still write a competitive offer, but not to the point of putting themselves at risk of having to come to the table with a big check — or losing their earnest money.
2. Show sellers you’re serious with a “time off market” fee In a market where it’s common for buyers to lose a home to a competitor offering over the asking price, there’s an option that could, in some cases, be just as attractive to sellers and potentially less expensive. It’s called a time off-market fee.
When buyers make an offer on a home, they typically put up earnest money — a relatively small amount that can be refunded if certain conditions aren’t met.
However, with a “time off market” fee or TOM, the seller keeps the money regardless of whether the deal closes. It’s paid to them for accepting the buyers’ offer. It’s a bold strategy and it works really well. If the buyer doesn’t close, they still have to pay that.
A TOM fee in place of earnest money, can be more attractive to a seller than an offer over the asking price, especially if the offer would result in an appraisal gap, where the sales price is more than what an appraiser determines a house is worth in the current market.
For instance, a real estate agent negotiated a deal where a competing offer was about $10,000 over the listing price. Rather than match that offer, they successfully made a case that the house was accurately priced based on the sale of comparable homes; an offer above that price would inevitably result in an appraisal gap that could jeopardize the deal.
This competitive offer strategy can be more attractive to the seller, and ultimately cheaper for the buyer, than making an offer of $10,000 over asking.
The size of the TOM fee depends on the price of the house, but usually, it ranges from $500 to $5,000. The buyer has to understand what a TOM fee is be 100% comfortable with it and be committed to that house or willing to lose that TOM fee in the event they don’t close on it.
3. Pay a lender for a lower interest rate over the life of the loan Buying “mortgage points,” also known as discount points or simply points, from a lender can help reduce the monthly payment on a home. Mortgage points are essentially prepaid interest paid at closing in exchange for a lower interest rate over the life of the loan. Each point typically costs 1% of the total loan amount. The more points you buy, the lower the interest rate.
One point generally reduces the interest rate by a specific percentage, often 0.25%. For example, if a buyer applies for a $300,000 mortgage and decides to buy one point, they would pay $3,000 (1% of $300,000) and receive a reduction of 0.25% on their interest rate.
Buyers considering this strategy should consider how long they plan to stay in the home, how much they’ll save by reducing the interest rate, and how much money they’ll have to spend upfront. A loan officer or financial advisor can help determine whether buying points makes sense for you.
4. Pay a lender to temporarily lower your interest rate Another way to lower a monthly mortgage payment is to cut the interest rate for the first one to three years of the loan. The most common mortgage product to do that is a 2/1 buydown. It allows a borrower to ‘buy’ a lower interest rate for the first two years of their mortgage by prepaying a portion of the interest on the loan. For example, a borrower who applies for a 30-year, fixed-rate mortgage at 7% can lower the mortgage to 5% the first year and 6% the second year by pre-paying the interest they would have paid at the 7% rate for those two years. The mortgage then reverts to 7% in the third year.
It’s important to note that the buydown cost is separate from other closing costs, and can be paid for by the seller, builder, or buyer. Buyers who adopt this strategy either plan on dropping interest rates to refinance or increase their incomes over the two years the lower rate is in effect.
Loan officers can provide accurate and up-to-date information on the cost of a 2/1 buydown and specific details based on different loan amounts, interest rates, and loan terms.
5. Bump up the offer price in exchange for a lower, seller-subsidized mortgage rate This tactic is most effective when negotiating with a seller whose house is not selling as quickly as expected or when the market favors buyers.
Example: Offering about $8,000 over list price and asking the seller to credit that money back so the buyer can purchase a lower mortgage interest rate from their lender at closing.
In effect, the buyer increased the loan amount so they didn’t have to pay out-of-pocket to get a lower rate. The result a lower monthly payment and the ability to spread the cost of the buydown over the life of the loan.
There’s a risk if it doesn’t appraise at the higher amount, but if you can use that money for a 2/1 buydown, or just buy the rate down by a certain percentage point, you can lower the monthly payment.
The 2/1 buydown temporarily lowers the mortgage payment for two years while buying points lower payments over the life of the loan.
In the mentioned example, the client could buy down the mortgage rate by 1.5 percentage points, putting them in a better position on their mortgage payments than if they’d paid the listing price without the lower interest rate.
6. Ask for a lender credit to buy down the mortgage rate This is where professional relationships are especially important. He says that agents who work closely with lender partners can help buyers make a better, more competitive offer in neck-in-neck situations.
While some of these scenarios may seem complicated, an experienced agent and loan officer can discuss options. Buyers who want to explore different scenarios can do so with the many resources available.
7. Consider new construction While buying new construction isn’t a competitive offer strategy, it provides one avenue for more affordable mortgage rates. The added bonus is that there is less competition, no bidding wars, and clients get a brand-new home in certain markets. Many builders offer great incentives with in-house financing, such as a 4.99% interest on financing. The rate was about 2% lower than the rates on a 30-year mortgage.
While builders might hold firm on the asking price so as not to affect prices on homes in the rest of the development, they may be more willing to negotiate around concessions and financing.
Whether you’re in the hunt for a home or you’re still in the dreaming phase, it can help to familiarize yourself with strategies for making competitive offers in a seller market, so that when the time is right, you know your options be sure to talk to your agent to know for sure. Every tactic comes with some degree of risk, and it’s critical that buyers understand tradeoffs and consequences and how the tactics fit into the bigger picture.
If you are planning to retire and considering a move, your home equity can be a valuable asset to help you make that transition. Here are a few ways you can utilize your equity to your advantage:
Downsize: Selling your current home and moving to a smaller, more affordable property can free up a significant amount of money. This can help you reduce your monthly expenses, eliminate mortgage payments, and have more funds available for retirement.
Move to a Retirement Community: Retirement communities often offer amenities and services specifically designed for seniors. By using your home equity, you can make a move to a community that suits your lifestyle and provides the support you need as you age.
Purchase a Second Home: If you have always dreamed of owning a vacation home or a property in a different location, using your home equity can make that dream a reality. You can enjoy your retirement years in a new and exciting environment while still having a place to call home.
Invest in Rental Properties: Real estate can be a lucrative investment, especially if you have the time and resources to manage rental properties. By utilizing your home equity, you can purchase additional properties and generate passive income during your retirement.
Fund Home Improvements: If you plan to stay in your current home, using your home equity to fund renovations or upgrades can enhance your living space and increase its value. This can be a great option if you want to age in place and create a more comfortable environment for your retirement years.
Before making any decisions, it’s important to consult with a financial advisor or a real estate professional like Scott and Mary Tynell who can help you understand the potential benefits and risks associated with utilizing your home equity. They can guide you through the process and help you make an informed decision based on your specific needs and goals.
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