Feel like you live in a glass house? There’s a cure for that

Love your home but feel like your neighbors are so close they practically live with you?

When you find yourself feeling like you live in a fishbowl and craving privacy, turn to Mother Nature. She provides a number of landscaping techniques that will help close your home off to prying eyes and give you that feeling of solitude you crave.

Best of all, we picked the solutions that require the least maintenance.

Take the first steps to solitude

If you live in a community that is managed by a HOA, you’ll need to dig out that packet of documents you received when you bought the home. Most HOAs have landscaping rules and it’d be a shame to have to remove your privacy landscaping if you’re found in violation.

Then, decide how much privacy you want. Will you want something dense that completely blocks the view of the home from passers-by or neighbors, or do you prefer a lighter touch?

As you decide which plants to purchase, ensure that they are suited to your climate. Both the USDA and Sunset magazine have determined hardiness zones. The former lists plants based on their cold tolerance.

Consider using native plants. They are generally more tolerant of your region’s soil conditions and microclimates and are less picky in their maintenance requirements. The American Horticultural Society lists native plant societies in each state at ahsgardening.org.

Also, you may want to check which plants your county Cooperative Extension Service suggests. You’ll find a list for each state at gardenologist.org.

Hiding the full Monty

Although it doesn’t seem to be a concern for most suburban homeowners, if it bothers you that the front of the house is open to the world, consider the following options.

Your first decision is to consider whether you want an evergreen solution or deciduous. The latter defeats both the “low-maintenance” and “privacy” issues, however. Unless you don’t mind losing your privacy when the weather cools and foliage drops.

That said, the extension folks at Colorado State University recommend that you choose a woody plant so that when it loses its foliage, the twigs and branches will still help shield the home from the street.

North privet (Ligustrum x ibolium) is one to consider as it grows rapidly (up to 3 feet per year, according to the Arbor Day Foundation) and Japanese meadowsweet (Spirea japonica), a twiggy shrub with beautiful blooms, grows from 4 to 6-feet in height.

Evergreen shrubs to consider include Emerald arborvitae (Thuja occidentalis ‘Emerald’), Nigra arborvitae (Thuja occidentalis ‘Nigra’), English laurel (Prunus laurocerasus) and, in warmer climates, oleander (Nerium oleander). The latter is toxic, so it may not be a good choice for those with small children and/or pets who like to munch on plants.

Don’t neglect the extremely fast growth and beauty of bamboo. Clumping varieties are attractive and won’t invade the rest of yours and your neighbor’s yards. They do, however, drop litter, so keep them away from spas and swimming pools.

Choose fast-growing plants to get your privacy sooner. Whichever you decide on, however, with strategic placement you’ll be able to block those prying eyes.

Tasks most homeowners neglect when getting the house ready to sell

Preparing a home for the market is a lot like trying to get a sip of water from an open fire hydrant. Depending on how well you maintained the home, it can be overwhelming.

In the frenzy to get the big things done, some of the small, but critical tasks remain unattended to.

We see it often. An otherwise well-prepared home with just a few small items that need attending to.

Since bathrooms and kitchens are the rooms most important to most homebuyers, we’ll concentrate on them.

If you’re getting your home ready for the market, put these on your to-do list.

Get the bathroom ready for homebuyers

  1. Ring around the toilet bowl? Get rid of it. Even though we always suggest to our sellers that they leave the toilet lid closed, we often find it open.

A ring at the water line or any other part of the bowl that’s visible will be noticed by those viewing your home.

We spoke with a team of professional cleaners who offered up a few tips:

Start with bleach. Pour about 1 cup of bleach into the bowl and walk away. If the stain hasn’t calcified, it should be gone in about 30 minutes to one hour.

If it remains, grab a pumice stone. Let the water drain from the toilet as it’s flushing and use the water turn-off valve (usually behind the toilet) to turn of the water before it starts refilling.

Lightly scrub the stain with the pumice stone.

If all else fails, consider buying a product specific to removing calcium and lime, such as CLR. You can pick it up at Walmart, Home Depot and online at Amazon.com.

Follow the instructions carefully and that ring should be a thing of the past.

  1. Nasty grout

The internet is full of helpful and not-so helpful cleaning advice. One of the most common chores we’ve seen is cleaning bathroom grout. The suggestions for the job include everything from toothpaste to the ubiquitous baking-soda-and-water to vinegar.

It turns out that bleach is the best grout cleaner. Use it right out of the bottle and let it sit before scrubbing away the grime. Do wear gloves and a face mask for this job.

Too toxic for you? Try using oxygen bleach powder (sodium percarbonate). A well-known brand is OxiClean but there are others as well. Check out this list at Amazon.com.

Mix the powder with enough water to make a paste and smear it over the grout lines. Leave it there for 15 minutes.

Add more to the areas where the solution has soaked in, ensuring that the grout is always flooded with the paste.

Finally, use a toothbrush or other small scrubbing implement to scrub the grout, adding more if needed to remove the stains.

Get busy in the kitchen

  1. Look at listings of homes for sale and you’ll no doubt come across one of our pet peeves: photos, school work, etc. stuck to the front of the refrigerator. Remove them, please.
  1. Clean the glass on the oven door. Yup, it sounds like a huge headache of a job, but we promise, it’s not.

Before starting, lay an old rug or towel on the floor in front of the oven to catch any paste or other substances that may fall to the floor.

Wipe the glass surfaces down and then spread a baking soda-water paste over the glass window portion. Lay it on as thick as possible, swirling as you spread it.

Allow the paste to remain for 30 minutes then use a clean, wet rag to remove it. You may need to wring out the rag and wipe several times to remove it.

If any stubborn stains remain, use a sharp razor blade to gently scrape them away.

Repeat the procedure on the front of the glass window in the oven.

Finally, use your favorite window cleaner to shine up the glass.

3. Organize the contents of kitchen cupboards. Yes, potential buyers will open the cupboards and the pantry door.

While it may seem nosy, they’re looking to see how roomy they are and whether they will contain all of their kitchen “stuff.”

If you haven’t yet removed items you rarely use (especially larger items, such as that ice-cream maker or waffle iron), remove them now.

Then, organize what’s left so that when potential buyers peer in they see lots and lots of space.

  1. Clean the inside of the dishwasher

Remove and clean the filter. You’ll find it beneath the spray arm on the bottom of the dishwasher’s interior.

Get the water from the faucet as hot as you can tolerate and rinse the filter, using an old toothbrush to scrape away food particles stuck to it. Once it’s clean, replace it in its spot inside the dishwasher.

Use a dishwasher cleaning product to finish the job. Cascade manufactures one but there are others you can find at the supermarket, Walmart or purchase online at Amazon.com. Follow the instructions carefully.

  1. Shine up stainless-steel appliances

Buyers are in a long-time love affair with stainless steel appliances.

Yet, if you’ve look at listings of homes for sale recently, you’ll notice that many homeowners neglect to clean off the handprints and spilled food and drink.

The best way to clean these appliance fronts is with WD-40 (available at auto parts stores, big-box home improvement stores and many supermarkets).

Spray the product on a rag and wipe down the appliance. With a clean rag, wipe the surface again. Finally, use a microfiber cloth to buff the finish.

Don’t forget to replace dead lightbulbs, clean their fixtures and wash the windows in both rooms.

Now, you’re one step ahead of the competition.

Happy selling!

Cheap Ways to Revamp Your Kitchen

If you went through the winter holidays cursing your kitchen, maybe it’s time to decide, once and for all, to do something about it. Especially if you don’t plan on selling anytime soon, at least make it more pleasant to work in.

Don’t worry about this costing a fortune, because we’ve tried to stick to changes that will be impressive, yet cost little and you can do them yourself.

What color is your kitchen?

A fresh coat of paint works wonders in every room of the house, but in the kitchen, it can make even the appliances feel newer than they are.

If you think you’ll be selling the home this year or next, use a neutral shade and work with the natural lighting in your home.

For example, light colors with cool tones work best when there isn’t a lot of light coming in through the windows. You can get away with warmer tones when there is more natural light.

To get a better handle on warm and cool paint tones, check out the guide at paintzen.com.

Still not sure about the color you want? Take a look at this tool from Sherwin-Williams. This “color visualizer” will make the choice more fun and allow you to visualize your finished work.

Kitchen cabinets

You can easily update the style of your kitchen with new drawer pulls and knobs. The selection of kitchen cabinet hardware you’ll find online and in brick and mortar home improvement stores is amazing. To get you started, check out:

If you have a little more money to spend, consider new cabinet facings. This allows you to transform the appearance of your cabinets without replacing the entire cabinet.

Get kitchen cabinet refacing project tips at This Old House.

Finally, consider repainting your kitchen cabinets. Although it’s a time-consuming project (unless you have help), it’s not difficult and it will freshen up your kitchen.

You’ll find walkthroughs online at:

Prefer a video tutorial? Check out this list at YouTube.com.

Kitchen countertops

Hate your Formica (laminate) countertops but not blessed with the money it will cost to install new granite or quartz?

Resurface them. It’s one of the most popular DIY kitchen projects and, yes, it’s time consuming, but an easy job for the DIYer.

Several companies manufacture countertop refinishing kits in a number of finishes, from faux granite to cement to merely painted. Take a look at what’s on offer at:

Kitchen lighting

Light fixtures often don’t get the attention they deserve. But new lights can make an extreme difference in your kitchen.

If you have the budget to replace your fixtures, aim to do all of them at once. If not, a single fixture will work. If the kitchen lacks task lighting, such as over the counters or stove, start there.

Never underestimate the power of your finishing touches. Splurge on new kitchen rugs, curtains and linens. A little imagination is all that’s needed to revamp your kitchen on a budget.

Protect your belongings while your home is on the market

Let’s get this out of the way upfront: Not everyone that shows up at an open house or requests a viewing of your home is honest.

Sure, most folks are, but some may be tempted to steal anything that catches their eye. And some of them may just act on the urge.

One of the most important steps in readying your home for the market is to protect your valuables and your information from the strangers that will be passing through.

Here’s a checklist of the most commonly “lifted” items.

Artwork

While valuable artwork isn’t exactly easy to pocket, thieves have been known to look at MLS listing pictures of luxury homes online. They aren’t in the market for a luxury home, but they do want to see what’s inside.

Before the photographer comes to the home to snap the pictures, take down anything that may catch the eye of a bad guy.

Prescription drugs

It’s not difficult to slip a bottle of pills into a pocket or purse. Plus, since most people keep their prescriptions in the bathroom, the perp has all the privacy he or she needs to rifle through the medicine cabinet.

Remove all prescription medications from the home. Keep them in your car, lock them in a safe or ask a friend to hold on to them for you.

Weapons

Most gun owners are responsible and keep their firearms under lock and key. If you don’t have a gun safe, take the weapon out of the home. The same holds true for other weapons

Technology

Laptops, iPads, smart phones, smart speakers, smart watches and earbuds are quite popular with thieves. Again, take them out of the home or lock them up.

Any tech items that are too large to remove from the home, such as a desktop computer, should be password protected and turned off.

Cash and Jewelry

Every thief’s favorite find is jewelry. In fact, the experts at The AA Home Insurance claim that jewelry is the most commonly stolen item from homes.

They are especially fond of diamonds, pearls and gold but will take anything they can pawn. Almost $1.4 billion worth of jewelry and precious metals was stolen in 2016,” according to Cannon Safe Company’s Angela Avila-McDonald, quoting FBI statistics.

Keeping cash and jewelry in a secure safe is the ideal way to foil a thief while your home is on the market.

Sensitive documents

Lock up bills, letters and anything else that may have identity information, such as social security numbers, driver’s license numbers, bank account numbers, dates of birth, Wi-Fi or computer passwords.

The following documents should be locked away or removed from the home:

  • Bank statements
  • Blank or cancelled checks
  • Mortgage statements
  • Passports
  • Social Security cards and records
  • Credit card information

Anything that can help someone steal your identity should be considered sensitive.

Car keys, house keys and garage door openers

Easy to pocket, keys and remotes allow the perp to come back at another time and gain access to your home and/or car. Don’t leave spare keys, etc. sitting in a drawer.

Pets

If your pets will remain in the home, keep them kenneled. Consider investing in a lock for the kennel, especially if you have a dog breed that is popular, rare or expensive.

Thankfully, most open houses and showings go off without a hitch. In fact, thefts are rare. But it’s always better to be proactive, especially with strangers coming into your home.

3 Important questions every homebuyer should ask, but few do

In that moment when you fall in love with a home, it’s almost impossible to let logic rule. Emotions run rampant, resulting in cosmetic aspects winning over financial aspects. We see it all the time in our real estate practice.

And, we sympathize. Especially when you’re tiring of looking at home after home; when you finally find “the one,” it’s hard not to get excited. But, it’s dangerous.

Far too often we see buyers neglect getting the valuable answers to questions that may seem routine but aren’t.

How old is the . . .?

If in doubt about the age of any of the home’s components and the home inspector isn’t able to help you figure it out, let me know; I’m happy to ask the homeowner for you.

This is especially important for appliances, such as the water heater (which has a life expectancy of 8 to 20 years, according to Lowe’s), the roof (the average life span of a roof from 20 to 50 years, depending on material) and the gas furnace, which gives up the ghost after about within 15 to 20 years.

It’s important to know how much life is left in the home’s components so you aren’t face with a large financial outlay when you least expect it.

What are the average monthly utility bills?

Americans pay, on average, $117.65 a month for electricity. Naturally, this varies depending on geography and other factors.

As a buyer, you may get a range of monthly prices from different sellers. This is because there are ways of mitigating high utility bills. Some homes are constructed more efficiently, others have lowers bills because the homeowners made upgrades and then there are those that seem to bleed electricity because of cheap construction techniques.

Water, electricity, gas, sewage, garbage and electric bills can take a major bite out of your housing budget each month, so get the answers to this important question before you agree to purchase the home.

Buying a condo?

If it’s a condo that’s snagged your heart, there are a number of very important questions to ask. Chief among them is ascertaining the amount of condo maintenance fees you’ll be responsible for each month.

But, that’s just the beginning. How healthy is the community’s reserve fund? What percentage of the units are tenant occupied?

Reading the rules and regulations will answer many other miscellaneous questions, such as whether or not pets, and how many, are allowed in the community, whether you will be allowed to run your business out of your home, noise rules and more.

The HOA meeting minutes are full of useful information as well. One of the first things to look for are complaints from homeowners – look even more carefully to see if these complaints are voiced repeatedly, over the course of several meetings. If so, it may be an indication of an unresponsive board of directors.

Feel free to ask all the real estate-related questions you have – we’re happy to answer them all.

3 Germ-ridden items in the home that few people ever clean

COVID-19 has made most of us hyper-aware of viruses. We have, in fact, received a crash-course on virology, learning how long the critters live on certain surfaces, how they enter and leave our bodies and, most importantly, how to kill them.

A virus is but one of the many germs we interact with on a daily basis. Germs are everywhere–in the air, water, soil and even in food. These include viruses, but also bacteria, fungi and other gross stuff that can infect us.

These critters get into our homes through a number of different routes:

  • Open doors
  • Open windows
  • On our clothing and skin
  • Sneezes, coughs, breathing and speaking

Most researchers of germs in the home agree that the dirtiest room is the kitchen and the dirtiest object in it is the dish sponge.

And, no, the toilet isn’t the most germ-ridden feature of your bathroom, your toothbrush holder is.

Some other items in our homes, however, seem so innocent that we rarely, if ever, clean them. These areas are worthy of extra attention when cleaning.

How did they figure this one out?

The folks at tapwarehouse.com conducted a British study to learn which items in the home collect a lot of germs.

“… we swabbed 30 items in total from three different households. This included a selection from the kitchen, bathroom as well as electronic, family and dog items,” according to Tom Drake, on the company’s website.

They swabbed items from:

  • Retired household with dog
  • Young couple household
  • Family household

The swabs were then left alone for five days so the “icky stuff” could multiply. Finally, they were given to Amanda Jones, PhD, Associate Professor and microbial researcher at Northumbria University for analysis.

Surprisingly germ ridden stuff in the average home

Got a laptop or desktop computer? If so, you may never look at it the same way when you learn what Dr. Jones did.

The keyboard is dirtier than your bathroom

Most contain a veritable cocktail of nasty germs, such as “… staphylococci [aka “staph”], streptococci and some airborne bacteria such as micrococci,” Dr. Jones tells Drake.

The most common staph infection is to the skin but it can also cause infection of the bloodstream, leading to sepsis, bone infections, an infection of the heart, food poisoning, pneumonia and more, according to the experts at medlineplus.gov.

Strep infections include “… pharyngitis, pneumonia, wound and skin infections, sepsis, and endocarditis,” notes Larry M. Bush, MD, FACP, Charles E. Schmidt College of Medicine, Florida Atlantic University at merckmanuals.com.

Which household had the germiest computer? “…the younger couple that were working from home,” according to Drake.

Do yourself a favor and disinfect your keyboard at least once a week. If a number of people are using the keyboard, consider cleaning it more often.

Use a solution that contains at 70% alcohol to wipe it down thoroughly. And, no, a higher percentage of alcohol isn’t better. In fact, they evaporate too quickly to sanitize.

Overall, “Disinfectants don’t harm your keyboard,” notes the experts at webmd.com.

Where’s the clicker?

Be honest: Have you ever cleaned your tv remote? Think of how many family members touch the device on a daily basis.

Which is why this particular study nominated it as the second dirtiest electronic item. Most common germs found on it include staph and strep.

Use alcohol wipes or a microfiber cloth moistened with alcohol to wipe it down every day.

The retired household with a dog had the dirtiest tv remote but the household with a family was very close behind.

This one is really gross

“… the bathroom tap is often the first thing people touch after they go to the toilet,” Drake said. He also notes that it’s the germiest part of the average household bathroom. Dr. Jones adds that the nasties found on bathroom taps include e. coli “… and other fecal types of bacteria.”

Drake adds that we are literally washing our hands “… with poo … .”

Since that’s the last thing we want to do, we are committed to cleaning our taps far more often and leaving disinfecting wipes near them. This way, we can wipe them down after each use.

While Drake cautions against using bleach or other corrosive disinfectants, others recommend using Lysol, Microban 24 Sanitizing Spray, Comet Cleaner with Bleach and even alcohol. See the U.S. Environmental Protection Agency’s website for a list of disinfectants.

Overall, the study found that homes with dogs and kids are germier.

No surprise there.

Confused about your home’s value?

Your neighbor Joe just listed his home at $435,000. It’s quite similar to yours so, naturally, you assume your home is worth the same amount.

Do you know what the list price of a home is known as in the real estate world?

“Fantasyland”

Even though his real estate agent most likely provided him with her most educated guess, based on research (remember, we’re assuming here), the seller has the final word on how much to list the home for. Therefore, the list price of any home represents what the seller is hoping to get for the home.

Whatever amount Joe decides to take for the home, it becomes a comparable that will be used in determining your home’s market value.

Confused?

Just remember that a home’s value is based on what a willing buyer will pay for it and a lender will lend on. And, we only have that information when the home sells.

No two homes are identical

Let’s imagine that Joe’s home sold for the full list price of $435,000, which isn’t at all far-fetched in the current real estate market.

Both yours and Joe’s house were built by the same builder and you both chose the same model. Therefore, your home is worth the same amount that Joe’s is, right?

Nope. You have faithfully maintained your home throughout the years you’ve lived in it.

Joe? Not so much.

Your neighbor did, however, add some improvements to his home, such as the addition of another bathroom. He also chose his lot strategically, for the value it would add to the home.

Then, there’s your home’s amazing landscaping, which Joe’s house is sorely lacking.

Your home may be worth that $435,000 that Joe got for his home. Then again, it may not. With the addition of the bathroom to Joe’s place came more square footage—a value adding feature, according to appraisers.

What else adds value to a home in the eyes of appraisers?

The general condition of the home. Since you’ve maintained your home better than Joe has, it’s a plus $ to the appraiser.

  • Amenities, upgrades, additions and other home improvements.
  • Location of the home.
  • Age of the home.
  • Square footage
  • Floor plan
  • Current market conditions and trends
  • Neighborhood characteristics (according to fanniemae.com).

An appraiser for a lender considering a loan for an FHA borrower has a number of other items on her checklist, such as those on this list at sacramentoappraisalblog.com.

If your buyer is obtaining a loan backed by the U.S. Department of Veterans Affairs (V.A.), the appraiser must not only determine reasonable market value, but also ensure that the home meets V.A. Minimum Property Requirements (MPRs).

These requirements include ensuring that the home is:

  • Sanitary
  • Safe
  • Structurally sound

In the end

Regardless of how much you think your home is worth and how much the buyer is willing to pay, it is the appraiser who has the last word.

This doesn’t mean you are powerless, however. You have the right to point out improvements or anything else that you and your agent think might raise the home’s value over that of your neighbors.

The buyer has a right to challenge a low appraisal.

“There is nothing sacred about appraisals,” according to the late Robert Bruss, real estate attorney and syndicated columnist.

“They often are wrong, especially if the appraiser is not very experienced or familiar with the neighborhood.”

Feeling SAD? Maximize the light in your home

Depending upon your outlook, you may enjoy gloomy winter days or you may want to hibernate until spring.

Even that may not be enough to stave off Seasonal Affective Disorder (SAD) or, in plain English, the winter blues. A subclass of depression, bouts can be mild or severe.

Thankfully, tricking your interior clock is all it takes to rid yourself of the blah feeling. Even if you don’t suffer from SAD, winter’s darkness has a way of creeping into the home, making it feel a bit dreary.

So, let’s do something about it. Just a few tricks and your biological rhythm will think you’re sitting on a sunny tropical beach.

Start with the windows

Windows are our homes’ eyes on the world. Maximizing the natural light through those windows is one of the best ways to chase away winter’s dreariness.

First, remove all the window screens. You’d be surprised how much more natural light will flow through those windows when it isn’t impeded by something that’s meant to be used only when windows are open.

Replace them in spring when fresh air becomes more important than natural light.

Heavy drapery is a smart move in winter, acting as insulation against drafty windows. Consider the addition of sheer liners behind them. During those days when you’re at home, throw back the thick curtains and the liners will provide privacy while allowing light to enter the room.

Reflect natural light

Now that you have an increase in natural light streaming through your windows, use it productively by adding reflective accessories in the rooms that require additional light.

Mirrors are ideal for this purpose but you can also use metals, crystal and mirrored accessories to throw light into dark corners.

Finally, consider light-colored slipcovers for your furniture or toss some light-colored pillows onto the sofa and add an attractive complementary-colored afghan. 

Consider repainting

“Current research suggests that there is a link between color sensitivity and mood disorders,” according to Teresa M. Kutchma, in the Journal of Undergraduate Research at Minnesota State University, Mankato (Vol. 3, Article 3).

It should come as no surprise that white is “the most reflective color,” states Chris Deziel at sciencing.com.

“When you look around a room, as long as the walls feel bright, the room feels bright,” interior lighting designer Nathanael Washam tells Laura Shinn at seattletimes.com.

“For your brain, the walls are what determines the feeling of brightness.”

And that’s what we need in the dead of winter: to trick our brains into a feeling of brightness.

Painting the interior walls a crisp white is a no-brainer. If you just can’t stomach the sterility that white lends to an entire house, however, choose another light color. The closer you can get to white, the better, but light blue is a brilliant mood lifter, for instance.

Avoid dark shades of blue and the overuse of the color yellow.

Add artificial light sources

This, too, may seem like a no-brainer, but have you considered adding a few new sources of light? Table lamps placed near a reflective surface will ramp up the cheer, and under-cabinet or shelf lighting will cast a warm glow to the area around bookcases and kitchen cabinets.

Fill those new light fixtures with full spectrum light bulbs. These bulbs produce a spectrum of light that is very much like the light spectrum of sunlight. Learn more about them at healthlighting.com.

If all else fails, consider purchasing a light therapy lamp, which “… gives off bright light that mimics natural outdoor light,” according to the experts at the Centers for Disease Control (CDC).

Avoid eye and skin damage by choosing a lamp that emits as little UV light as possible.

The CDC also provides the following “3 key elements for effectiveness:”

  • Plan your daily light therapy sessions so that they occur shortly after you wake up.
  • Use a 10,000-lux light box placed at a distance of about 16 to 24 inches from your face.
  • Each daily session should last 20 to 30 minutes. If your light box has a light with less lumens, check the instructions that come with it to determine how long your sessions should last.

If you suffer from seasonal affective disorder, talk to your health care provider about the treatment options that are best for you.

What to expect from the 2021 housing market

Good riddance 2020!

As we ease into what will hopefully be a far better year for all of us, we notice that questions about what to expect from the 2021 housing market are increasing.

As in everything else we’ve experienced of late, there’s no simple answer to what the “new normal” real estate market will look like.

We like to get an overview of both the national and local economies before offering up our best guestimate. We also enjoy reading the various predictions doled out by economists near the end of one year and the beginning of the next.

In a nutshell, there are three forces currently at work in the real estate market:

  • Strong demand for homes
  • Not enough homes for sale
  • Low interest rates

Will these remain in 2021? Let’s take a look at what the experts say.

Demand for homes

Demand is driven by affordability. If interest rates remain low in the new year, strong demand from home buyers will most likely continue.

The unknown in the equation is whether and by how much home prices will rise in response to the strong demand.

Realtor.com®’s 2021 housing forecast predicts record-high prices will continue rising in 2021,” notes Clare Trapasso. This may just knock first-time home buyers and others on a budget out of the market.

She goes on to say that the forecasters say that price growth will slow because the tight inventory of homes for sale will ease. “…the double-digit price hikes seen this year aren’t expected to carry over into the new year,” she concludes.

Not enough homes for sale

Every month, the gap between the number of homes sold and the number of new listings widens. Unless more homeowners decide to sell, the experts at Homesnap, a real estate tech company, expect the available housing inventory to remain low.

For example, when compared to 2019, 2020 saw a 0.22% increase in new listings, “…while total sales increased 19.29%.” (housingwire.com)

It may sound trite, but now truly is the best time to sell your home.

Low interest rates

Will mortgage interest rates remain low? There isn’t a lot of agreement from the experts.

“Rates are going to stay low. Demand is going to stay high. And President-elect Joe Biden will offer a tax credit for first-time home buyers,” according to Jeff Lazerson, contributing columnist at the East Bay Times.

Trapasso, citing the realtor.com forecast, claims that “… mortgage rates will begin slowly going up toward the last half of 2021.” She goes on to say that although the hike is predicted to be small, it “… has the potential to price out some buyers or force others to purchase cheaper abodes in less desirable locations.”

Mark Fleming, at housingwire.com, notes that “… consensus forecasts estimate the 30-year, fixed mortgage rate will likely be 3% – with forecasts ranging from 2.8% to 3.3%.”

Getting ready to sell

As you can see, and as is typical, there is not a broad agreement on what we can expect from the real estate market in 2021.

Even if you’re merely considering selling your home, start getting it ready for the market. Do some basic repairs, start de-cluttering and storing items that you don’t routinely use. Consider painting the interior.

We’re happy to give you some tips on where to start, at no cost or obligation to use our services. Feel free to reach out to us. We’re happy to help.

9 House-hunting steps for the first-timer

Like any process, buying a home involves a series of steps. When the steps are taken in a logical order, the process moves quicker and it’s less confusing.

Take these steps out of order and you may run into trouble. It’s a bit like algebra: follow the PEMDAS formula and you’ll get the right answer. Mess with the formula and who knows what you’ll come up with?

1. Find out how much you can afford to spend on a home

It astounds me how many folks start looking at houses before they know how much they can spend on a home.

This involves more than the amount the lender has pre-approved. Find a mortgage payment that fits your budget and use that as a ceiling on price when you’re shopping for a home.

Finding a lender to help you determine how much you can afford every month getting you pre-approved for a mortgage is the first and most important step in the process.

2. Decide which features you want vs need

Once you’ve seen a lender and know for certain how much you can afford to spend on a home, it’s a good idea to make a list of items that you just can’t live without.

Add to the list the features that you can live without but it sure would be nice to have them. And, naturally, which features would be an absolute deal-breaker.

This list is important to share with your real estate agent and to keep with you when you house hunt.

3. Find a real estate agent

House hunting is just so much easier with a good real estate agent in your corner.

Not only does it save you time you would otherwise spend poring over websites full of listings, we typically know of homes that will be coming available long before the general public does.

Best of all, our services are free to you. Please add us to your list of agents to interview.

4. Look into neighborhoods

Before you look at even one home, decide on several neighborhoods in which you’d like to shop.

If you need help choosing, we’re happy to help. Home prices in each neighborhood, for instance, will help us whittle down the list.

If commute is a concern, choose neighborhoods close to public transportation or near highways.

Think about amenities you want in a neighborhood, such as parks, recreational facilities, walkability and proximity to schools.

Give us a copy of your “wants” list and we’ll help you determine which neighborhoods you can afford to live in and which meet your needs and desires.

5. Consider the buddy system

It’s always good to have two sets of eyes when shopping for the biggest purchase of your life.

If you’re married you have an automatic “buddy” to accompany you on home viewings. If you are single, find a buddy who is willing to house hunt with you.

Give your shopping buddy a copy of your wants and needs list so he or she can help keep you from becoming starry-eyed over a house that doesn’t fit your criteria.

Which brings us to step 6.

6. Plan to leave your emotions in the car

Buying a home can be an emotional process. After all, you’re spending a lot of money on it.

In the end, however, it’s a business transaction and if you approach it as such, the process will be much easier.

Remember as well that cosmetic issues are easy to fix. Don’t let them keep you from buying a home that is otherwise perfect for you.

7. Take notes

Note the address of each home you viewed that you were even slightly interested in and their good and bad features.

This will help jog your memory when you sit down later to weigh the pros and cons of each.

8. Do or don’t “sleep on it” before you decide on a home

While sleeping on a major decision is always a good idea, in a fast-moving real estate market you simply do not have that luxury.

In multiple offer situations, by the time you wake up from sleeping on the decision the home will be under contract with another buyer.

9. Don’t spend money

Many first-time homebuyers are so excited when their offer is accepted and the closing date is approaching that they decide to splurge on items for the home.

That’s a huge mistake

Lenders perform what is called a “soft pull” of your credit report shortly before closing. They do this to ensure that your financial picture is the same as when they agreed to lend you the money.

If you purchase big-ticket items on credit (such as new furniture or appliances), your debt-to-income ratio will change and you may find out, days before closing, that you no longer qualify for the mortgage.

Don’t switch jobs, don’t buy any expensive items on credit and pay your bills on time. Save the splurge for after closing.

I’m happy to answer any questions you have about the home buying process Feel free to contact me.