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For people who are looking to place their home on the market for sale, there are many important things that homeowners should focus on to make their home more sellable. One of the key elements to help ensure the marketability of a home is the home’s aesthetic appearance and whether it is in good repair.
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When it comes to the interior of a home, many home sellers are accustomed to the idea that homes that are pleasing on the interior and show well will sell quicker. This an easy takeaway piece of knowledge as a tip for sellers. Statistics show that “staged” homes and homes with high care for their interior and exterior sell quicker than those homes that meet only the status quo. This is where the world of “staging” comes into play.
Staging an interior of a home involves the process of making the interior of the home look enhanced and polished. The basic task is beautifying the home to present it to look like a cutout from an interior design magazine. In most cases, it involves creating an atmosphere that looks elegant and “staged”. This process removes many personal items from the home, including some furnishings and decluttering it. The home is then accented with design accessories to make it look polished.
When it comes to the exterior of a home, “staging” would be a process of making the yard and the exterior of the home look beautified with a greater curbside appeal. While a homeowner might get concerned that this process would require a sizable financial investment, it can usually be accomplished with an investment of several hundred dollars and some sweat equity.
While many homeowners count on the interior of the home being the primary way to get people’s attention to buy, the exterior of the home is also one of the main factors buyers look at when considering the purchase of a home. Since exterior aesthetics are the first impression people see when looking for a new home to buy, this is should always be considered a vital selling factor. Well-kept homes on the exterior are a signal to buyer’s that shows the homeowner has cared for the overall property not just interior design.
In most cases, a yard can be beautified by general clean up and light landscaping projects. Adding some outside furnishings and creating a patio type environment can be a big plus. This is part of one of the more recent trends that has garnered a great deal of attention in homes and involves the creation of outdoor living areas. Creating a basic outdoor living space allows for buyers to visualize what it will be like to enjoy living at the home and enjoying the yard.
When working on creating a great outdoor living area for marketing, it is probably a good time to consider good quality pest control. Homeowners should count on for annual home insect control. Yards that appear to have a higher insect infestation can be a big deterrent to home buyers.
Additionally, clearing the yard of any debris can be essential and will reduce insect infestation problems. Most homebuyers don’t want to buy a home that is going to require extensive repairs and maintenance as soon as they move in. Yard work should be kept up with during the sales process.
Investing in treated bark mulch and a few shrubs and plantings by the entryway as well as repairing walkways can also improve the aesthetics. Another helpful investment would be the purchase a new front door or painting an existing one if needed. While this may seem insignificant, this can be an important factor for improving the overall look and exterior aesthetics of the home.
Question: Our governing documents are vague about how to allocate expenses among the unit owners. The board decided to base it on unit square footage.
Answer: If the governing documents don't specifically state otherwise, equal allocation of expenses is the default formula. The board has no authority to change the allocation formula. Only the members themselves have the power to change the allocation formula. And in some states, fees cannot be changed without a 100% agreement of the members and mortgagees so don't waste your time trying.
Question: Can a board member bid on a project to clean the gutters or make small building repairs? We are having trouble finding qualified people to do the little things that need to be done. The present management company say that a board member can not be paid for work.
Answer: Cleaning gutters is not the board's job so the issue of payment does not apply. What does apply is the issue of conflict of interest. If a board member wants to perform work for the HOA, he should be properly licensed and insured to do it. If the remaining directors agree that they want to hire this person, he should step off the board to avoid an obvious conflict of interest. Do one or the other but not both.
Question: I'm confused about what to include in meeting minutes. I always record motions and votes but am uncertain about including details of discussions.
Answer: Details of discussions should not be included in the minutes. The minutes should only include details of reports and actions (motions and votes). Discussions should be left out.
Question: Do most homeowner associations allow window air conditioning units?
Answer: While this varies from HOA to HOA, most don't (or shouldn't) allow them for a variety of reasons. They detract from curb appeal, give off heat, make noise and often leak causing structural dryrot. There are legitimate exceptions the board should make due to a documented health issue that requires air conditioning.
Freddie Mac's results of its Primary Mortgage Market Survey® shows that "Following a month-long rise, mortgage rates effectively stayed flat this week. Recent rate increases have yet to significantly impact purchase demand, as history demonstrates that potential homebuyers who are on the fence will often enter the market at the start of rate increase cycles. We do expect rates to continue to increase but at a more gradual pace. Therefore, a fair number of current homeowners could continue to benefit from refinancing to lower their mortgage payment."
• 30-year fixed-rate mortgage (FRM) averaged 3.55 percent with an average 0.7 points for the week ending January 27, 2022, up from last month when it averaged 3.05 percent. A year ago, at this time, the 30-year FRM averaged 2.73 percent.
• 15-year FRM this week averaged 2.8 percent with an average 0.6 points, up from last month when it averaged 2.3 percent. A year ago, at this time, the 15-year FRM averaged 2.2 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.7 percent this week with an average 0.2 points, up from last month when it averaged 2.37 percent. A year ago, at this time, the 5-year ARM averaged 2.8 percent.
If you’ve heard the term underwater mortgage, it refers to a situation where the balance on a mortgage is more than the home’s fair market value. Being in a situation with an underwater mortgage was common after the housing crash in the late 2000s. Many homeowners rapidly saw their homes lose a significant amount of value.
Real estate has recovered since then, but there are still many parts of the country that have a large share of homes where the owner would be considered underwater on their home loan.
No one wants to owe more on their home than it’s worth, but it’s a more common scenario than you might think.
If you bought your home a couple of years ago and owed $200,000 on your mortgage, that might have been fine. Then, something could have happened, triggering a decline in home values where you live. Now, your home is worth, let’s say, $180,000, but you owe $200,000 regardless.
Your mortgage would be $20,000 more than the value of your home.
An underwater mortgage is also referred to as being upside-down.
If you’re concerned you could be underwater, there are some steps you can take to figure it out. First, determine what you still owe on your mortgage.
Then, you’ll want to find out the value of your home. You can talk to a real estate agent to get a general estimate. You can also get a more specific, accurate value if you hire an appraiser.
From there, you’ll subtract what you owe from the current value.
So what can you do if you find out you are underwater?
It can feel scary if you figure out you owe more than what your home is worth, but you aren’t without options.
One of the simplest options is to stay in your home and build equity.
You want to work toward paying it off, even if it’s a slow process.
Once you pay more of your principal, you’ll start to feel like you’re in a better position, and you will be.
If you don’t have to, don’t give up and then default on your payments.
Another option is to refinance. However, you can’t refinance when you owe more than it’s worth. It would help if you had at least 20% equity in your home for most lenders to consider you for refinancing.
If you’re underwater, though, you might qualify for HARP. HARP was created in response to the 2008 housing crisis.
To qualify for HARP, you must have made your mortgage payments on time for the past six months. You can’t have had more than one late payment over the past 12 months. The program only applies if you have a loan that originated before May 31, 2009, with less than 20% equity.
If you’re underwater, the third option is that you could sell your home, and then you’d have to pay the amount you still owe. You’re going to lose money, and you may need cash on hand so that you can make up the difference between what the home is worth and what you owe.
This isn’t a great option, and it should only be a consideration if you absolutely have to sell your house for some reason.
A fourth option is to go through the short sale process. A short sale is when you can’t afford your mortgage payments, and your home is worth less than the current balance of the mortgage. In a short sale, the lender will need to agree to sell your home for less than what’s owed on it. Lenders don’t like this because they lose money, and they’re only going to offer this option as a last resort.
If you want to sell your home in a short sale, you have to show the lender you aren’t able to make your payments, and you won’t be able to catch up on them.
Finally, the fifth option is to foreclose on your home. You’ll be evicted if you still live there. A foreclosure is the absolute last thing you want to do if you’re upside down. It would help if you tried everything else before going this route because you’ll lose your home, and you will usually have to wait seven years to get another mortgage.
The pandemic has changed the way we look at a wide range of essential things: home, work, careers, security, leisure, real estate….
For many real estate buyers, the vortex of change around them has altered the way they look at the process of buying and at the home they want to buy.
Whether you started home shopping during the pandemic or you’ve been waiting for “normalcy” to return to pricing, take a deep breath and make sure your thinking is up-to-date before you plunge into 2022 home viewing.
Originally, you may have been searching with a clear picture of your dream home in mind. However, have you brought 2022 reality into your dream of home, incorporating all the changes that have arisen over the past two years and are emerging now?
How will you afford the house or condominium unit? Many industries have been shaken up by the pandemic, particularly the hospitality, transportation, and medical sectors. Further, working from home is now a viable possibility in financial services and many other industries, so you may be less tied to an expensive workplace location in your choice of where to live. Some businesses may permanently close their doors while new ventures will offer new job opportunities. Technology, particularly artificial intelligence and machine learning, are impacting many workplaces and jobs.
What changes will transform your workplace, profession, career, or business? Why are you sure that your employment or business will still be there and that your income will continue to rise?
Mortgage pre-approval is a smart move if you want to max-out and count-on your borrowing power. With interest rates projected to rise, locking-in your buying power may give you an important edge during transaction negotiations.
Improving your income should increase the size of your mortgage. Have you or your partner had a raise? Do either of you plan to get a better job or are you expecting more pay when you finish your current education upgrade?
Reductions in debt improve borrowing power. If you saved and paid off most or all of your credit-card debt, sold your car, or re-paid a significant amount of student loan debt, these financial improvements may enable you to qualify for a larger mortgage.
How much over budget would you, or could you, spend to purchase your dream home? Think about this before you start shopping, so you are not caught up in the frenzy of a bidding competition. If you would spend tens of thousands more than the price range you are shopping in, perhaps you should consider shopping in a higher price range from the start?
Traditionally, people wanted to live near work and/or schools. Thanks to the internet, virtual working from home (WFH) and virtual schooling have allowed buyers to think further afield for a new place to center their lives. What do you want to be walking-distance from? A short drive from? What community do you want to be part of or near to? The responsibility for personal fulfillment and independence rests with you.
The shift to a lifestyle-focused, not work-centric, lifestyle has been strengthened by the forced interruption of the past two years. For instance, light pollution has become more evident to people who are stuck at home and spending more time with their children. According to the US-based International Dark-Sky Association, “light pollution is increasing at a 2x rate of population growth and 83% of the global population lives under a light-polluted sky.” Light pollution is the result of outdoor lighting that is not properly shielded, enabling light to shine into our eyes (glare) and the night sky (skyglow). Light can trespass from a neighbor’s yard to yours where it can be intrusive. Are you searching for a new home where you can enjoy dark skies or a different aspect of nature?
Many families have decided on a move to a less urban, more-for-your-money area to enjoy a recreational-based lifestyle. On the other hand, the financial advantages of sharing living space with work space by WFH or running a home-based online business can enable buyers to afford a larger, prime-location urban setting.
If you’re searching for a protective environment where comings and goings can be more controlled should this virus continue or a new outbreak arise, an island or a gated community may be the ideal spot.
If your pre-pandemic life revolved around travel or frequent event or sporting attendance, what do you want your future entertainment and exploration to center on? If mass travel and crowd attendance have lost some of their charm, consider a lifestyle that would keep you on perpetual holiday.
Perhaps your friends & family circle would be interested in shared ownership. Each family involved would contribute a financial share and receive use of and benefits—including value appreciation—from several homes, not just one. Or, perhaps you have the financial resources to do this alone or in a ready-made investment-driven arrangement through advisors.
• Introduce variety into your life by owning or renting different homes as seasons change. Those WFH could experience ”workations.” That is, they could continue working while in these different environments to refresh their “office” experience without breaking employer routines.
• If you want to travel, but prefer to restrict movement to environments that you can still control for safety, owning several small homes in widely-different locations may provide you with a broader, yet still safe, world. This may prove more satisfying than owning one house which you frequently want to leave. You may also expand your horizons by becoming involved in local “Being Better” community improvement programs at the various locations you’ve chosen.
• To introduce variety more cost-effectively, consider shared-ownership options like fractional ownership, which could provide worry-free access to a summer home, winter recreational property, and international get-away with timing and in locations that suit you
Since this all began, we’ve been watching the horror shows going on in retirement homes and care facilities. During the pandemic, the impact of poor management, profit-taking, ageism, and substandard housing on the lives of individual residents became evident and frightening. These previously rarely-spoken-of “last-home” options were revealed as far-from-ideal places to spend your last precious years or to have your loved ones housed.
Now, aging in place, or staying in your own home forever, makes sense. Home buyers at all stages of life are considering barrier-free design issues like elevators, main-floor bedrooms with ensuite, accessible bathrooms and showers, adjustable-height cupboards and kitchen counters, and eliminating unnecessary steps. These and other useful barrier-free design features are valuable to everyone, but essential for those who wish for a safe, comfortable home throughout their lives. These forward thinkers also encourage loved ones, who live with them or independently, to adopt age-in-place, barrier-free design.
Advanced chronological age should not force a move to a restricted, often less-nurturing environment. Why leave behind the home you love, your beloved circle of friends and neighbors, and familiar, cherished environs at a time in your life when you most treasure them—and the security they offer?
If you know exactly what you want, perhaps undertaking a massive renovation or building a new house may be a viable solution for you. This may not be cheaper than buying someone else’s dream home, in fact it might be more expensive. However, if you are sure about what you want, explore a few available options with real estate professionals who work with local builders. Their experience should help you see quickly whether this alternative is feasible and practical for you.
What will your 2022-overhauled dream home definitely include and positively avoid?