Understanding foreclosure rates and their impact on the housing market

Well, this is certainly something we weren’t expecting. Major economists promised us that the economic downturn would be nothing like what we experienced in 2008.

Yet, a recent headline at Realtor.com warns us that “The number of homeowners receiving a dreaded foreclosure filing spiked in May.”

At first blush, it seems rather odd. We were reading about record home equity across the country just last year. But that was before the recent rate hikes.

According to CoreLogic, which keeps track of the ups and downs of home equity, Americans who currently hold a mortgage (about 63% of all homeowners) lost “…$108.4 billion since the first quarter of 2022” as of the first quarter of 2023.

California, Washington and Utah homeowners lead the pack with the highest losses. Overall, it impacts those who bought during the pandemic the hardest.

But it’s not all doom and gloom. “… while homeowners in some areas of the country who bought a property last spring have no equity due to price losses, forecasted home price appreciation over the next year should help many borrowers regain some of that lost equity,” the Core Logic study shows.

Not only does this bode well for current homeowners, but for homebuyers as well. The lesson seems to be:

Get into the market now before prices start to climb

Thanks to rising home prices, “The average U.S. homeowner now has more than $274,000 in equity — up significantly from $182,000 before the pandemic,” according to the Economy Team at CoreLogic.com.

How do foreclosure rates impact the housing market? Read on as we dive into the topic.

What are foreclosure rates?

Foreclosure is when a lender takes ownership of a property because the person who borrowed money to buy the property hasn’t been able to make their mortgage payments. Foreclosure rates tell us how many homes are going through this process.

They help us determine if more people struggle to keep up with their mortgage payments and what that means for the housing market.

The current situation

In the past year, foreclosure rates have been relatively low due to the government’s help during the COVID-19 pandemic. Programs were put in place to give temporary relief to homeowners who were facing financial difficulties.

However, as these programs ended, foreclosure rates began increasing. This could be because some people are still facing financial challenges or the pandemic’s impact on the economy continues.

Impact on the housing market

More Houses for Sale: If foreclosure rates continue increasing, more houses will be available for sale. These bank-owned houses are often sold at lower prices, which could affect the overall value of homes in certain areas.
Rentals and Prices: When people can’t afford their mortgage payments, they might choose to rent their homes instead. This means more rental properties become available. It could lead to lower rental prices, which would be good news for people looking to rent. However, it may create challenges for landlords who struggle to find tenants or earn enough money from their rental properties.
Concerns for Lenders and Investors: When foreclosures happen, lenders who give loans to homeowners might not get all their money back. This can cause financial problems for the lenders.
Housing Affordability: Foreclosures can have a mixed effect on housing affordability. On the one hand, if home prices go down because of more foreclosed properties being sold, it could make it easier for some people to buy homes. On the other hand, if the economy is affected by foreclosures, it can lead to job losses and financial difficulties, making it harder for people to afford housing.

Although most homeowners have fixed-rate mortgages, the increase in interest rates may still negatively impact them.

“… studies show that homeowners may face more economic challenges in rising interest rate environments. These issues can lead to more spending, more debt, and consequently, a higher foreclosure rate,” suggests the lawyers with Orlowsky & Wilson, Ltd., a Chicago area business and estate planning law firm.

They remind us that loan modifications are popular products for those struggling to pay their mortgage. These programs “… often prevent foreclosure,” keeping Americans in their homes.

“However, with mortgage rates topping 6%, many fewer modifications can be done today. In addition, some homeowners are trapped in mortgages they cannot pay, so foreclosure rates have ticked up,” they conclude.

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What can be done?

To reduce the negative impact of foreclosures on the housing market, the government can take steps to help struggling homeowners. They can offer programs to modify loans, provide financial counseling services, and create initiatives to prevent foreclosures. These efforts aim to assist homeowners in keeping their homes, and they also stabilize the housing market.

Foreclosure rates are significant to watch because they affect the housing market and everyone involved. More foreclosures mean more houses for sale, potentially lower rental prices, concerns for lenders and investors, and mixed effects on housing affordability.

Struggling to buy a home? Consider multi-gen living

In the 19^th century, three generations living in the same home was a practice that dominated the American lifestyle. “Victorian society believed in the importance of family … Lifespans were lengthening, and couples also married earlier and had children sooner, so families were likelier to have three living generations” in one home, according to Flora Davis at SilverCentury.org. So it was Grandpa, Gramma, Mom, Dad, and the kids, all living as roommates.

By 1900, “… 57 percent of Americans 65 and older—and 71 percent of widows—lived with one of their grown children,” Davis claims.

Along came the Great Depression, and it only made sense for multiple generations of Americans to share the burden of the cost of housing.

Until the advent of Social Security upended everything.

“… almost immediately, living arrangements began to change: soon all but the poorest elders could afford to live independently,” Davis says. “By 1990, just 20 percent lived with an adult child, down from 71 percent at the turn of the century,” she concludes.

Fast forward three years ago, and we see a resurgence in the trend. Around 15 percent of homebuyers surveyed by the National Association of Realtors had plans to include multiple generations in their new home. “That’s an 11 percent increase in multi-generational buyers over the prior year,” claims Davis.

A lot of this has to do with sky-high home prices, bringing sky-high mortgage payments. It’s a lot easier to deal with the cost when several adults are contributing to the budget, the child-care duties, and looking after the Grands.

Have you considered joining the trend? If so, read on for some tips to keep in mind.

What to look for when house hunting for a multi-gen home

As you can imagine, with so many people under one roof, privacy is at a premium. Ensure that the home you place an offer on has a space for each member of the family to call their own.

This can be as simple as putting up dividers in large spaces to taking on more involved tasks, such as constructing new walls.

You’ll need to look into the local zoning laws if you choose the latter or find a large home to take advantage of the former.

Remember that much of what you need to look for in a home depends on which generations will live there.

“If you have adult kids moving in, a loft or a finished lower-level apartment might work well,” according to real estate journalist Michele Lerner at NewHomeSource.com. “For families moving older people into their home” keep “…the multigenerational suite on the first floor to avoid stairs,” she concludes, citing Jeff Roos, with Lennar Homes.

Lennar, by the way, offers its own solution for multi-gen living known as NextGen “Home Within A Home.” This may be your solution if a newly constructed home hits your hot button.

Remember, even when shopping among newly constructed homes, you will want your own real estate agent. The new home community’s agent works for the builder. Always have your own representation.

Issues to consider

Yes, it’s uncomfortable, but the financial aspect of the home purchase and ongoing costs are a discussion that needs to take place early in the process. And the discussion should not be “a parent-kid thing,” according to John Graham, who co-authored a book on multigenerational living.

He goes on to caution that families should aim to “level the hierarchy of the family,” treating each member as an adult. Some of the topics of these conversations should include:

Who will buy the property?
How will the title be held? It’s essential to understand the different ways of holding a title. For instance, what happens to the home upon the death of the primary buyer?
How much will each adult contribute each month to the mortgage payment?
Lists of each family member’s must-haves in a home and those he or she can’t tolerate.

Talk to your attorney to ensure you’ve discussed all the ramifications.

Dysfunctional families may find the thought of multigenerational living intolerable. Still, it may be the ideal lifestyle for families who enjoy close ties and harbor respect for one another.

What’s happening there between the curb and your home’s front door?

What happens — or doesn’t — in that area is known in real estate circles as “curb appeal,” and it makes or breaks your home’s first impression.

The focal point of this area is the entryway to the home – the front door and surrounding area. This is where your guests’ eyes will settle as they approach your home.

If you are one of those brave souls who got past the unattractiveness of a home’s exterior and decided to purchase anyway, or if you’re planning on selling your home, let’s figure out how to make your front door entrance warm and inviting.

Considerations

When planning the landscaping for your front entry, there are three primary considerations, according to Environmental Landscape Associates, a Pennsylvania design firm:

Principles
Program
Elements

Important principles include ensuring that the design is in synch with and complements the architectural style of your home. In other words, don’t go for a cottage garden entryway on a house with modern architecture.

Especially if you plan on putting the home on the market, curb appeal is far more critical than your personal taste in landscaping.

The second consideration, the program, is part of the process wherein you’ll need to determine how to utilize the space. Is the entryway merely for front-door access, or will there be entertainment elements also?

Large porches can accommodate seating and dining areas that become part of the home’s curb appeal. Don’t forget any privacy concerns. If you need to screen the front windows from neighbors or passing traffic, the barrier must coordinate with the other elements.

The design elements include everything you’ll need to create it, such as hardscape elements (bricks, pavers, etc.) and plants – both in the ground and in containers.

When deciding which plants to purchase, refer back to the principles and the program to ensure everything flows and is tied together at the end of the project.

Formal Entry Ideas

Formal entryways should exude symmetry. Think “organized.” Both sides of the entryway should mirror one another. This balanced approach lends a formal feel to the area.

Use patterned hardscapes, formal, shaped hedges, and elegant groundcovers. Hedging to consider includes:

Juniper
Rosemary
Boxwood
Holly

Frame the front door by planting – either in the ground or in attractive containers – identical plants on either side.

Informal Entry Ideas

You can get a lot more creative when creating informally landscaped entryways. Use natural stones on the walkway and, set them in irregular patterns, mix and match shrubs and perennial flowering plants. Line the walkway with interesting edging materials, such as a small white picket fence or colorful flowers.

If you aim for a relaxed feel, such as with a cottage entryway, use fragrant flowering plants such as roses, lilies, lavender, and thyme.

Soften a concrete or rigid walkway surface by lining it with soft-colored plants, such as dusty millers, combined with any red- or pink-foliage landscape plants, such as begonias or multi-colored coleus.

Year-Round Appeal

Whether your landscaping at the front door entrance is formal or casual, ensure it remains interesting all year. Combine deciduous and evergreen trees and shrubs so the entry isn’t completely bare when the leaves fall.

The experts with the University of Missouri Extension suggest choosing deciduous trees that bear flowers in the spring and summer, have good foliage color in the fall, and have an exciting branch structure.

Consider a mixture of the following plants:

Ornamental grass
Woody ornamentals, such as abelia and Japanese bayberry
Perennials, such as sedum

Put it all together

When the aim is to focus on the entryway, the most common arrangement of plants is to place large plants at both ends of the house and progressively smaller plants as you move toward the door.

The University above of Missouri Extension agents also suggests using odd numbers of plants in groupings – such as three or five – when designing an informal entryway. Your goal is formal, with symmetry and order, and use even number groupings.

The path to your front door, whether it heads straight to it or meanders a bit, requires landscaping to fit the home’s architecture and to provide year-round interest.

After all, this area is your home’s welcoming “handshake,” according to the editors of Sunset Magazine. Avoid giving your visitor the limp fish while you don’t want to offer a bone-crusher.

House or Condo: How to decide

Apples and oranges — that’s what condos and houses are. Sure, they both provide a roof over your head, and they’re both financial investments, but that’s where the similarities end.

Just as when we compare apples and oranges, houses and condos differ by price, taste, and by how they will be used.

The most significant difference between owning a condo and owning a house

Precisely what do you own when you buy them?

When you buy a house, you also typically own the land on which it sits and everything else permanently attached to the land. On the other hand, when you purchase a condo, you own only what lies between the walls of your unit.

The rest of the complex, the “common areas,” are owned in common by all the unit owners. You have the right to use the common areas but not alter them in any way. Some items considered common areas include:

Fitness center
Lobby
Pool
Mailroom
Tennis courts
Elevators
Landscaping

The Advantages of Purchasing a Condo

The price is the most obvious advantage of buying a condo rather than a house. Although luxury condominiums can be pricey, condos are far less expensive than houses.

For instance, the average price of a single-family home nationwide is $250,000, while the average price of a condo is $149,900.

Other advantages include:

Less maintenance — The Homeowner’s Association (HOA) is usually responsible for maintenance decisions, and all the owners share the cost of common area upkeep. This includes big-ticket items such as air-conditioning units, the roof, and fencing.
On-site amenities — While pools and fitness centers are common, the sky is the limit regarding condo amenities. Some complexes offer dog parks, clubhouses, a concierge, or rooftop gardens. Many high-end condo communities offer luxuries you may be unable to afford in the single-family home market.
Lower cost of living — While you will most likely pay a maintenance fee each month, it typically includes water, trash, and sewer costs. Sometimes utilities are included in the fee. The HOA pays for the insurance on the entire complex, so you may need only to cover what is inside your unit.

The Disadvantages of Buying a Condo

Judging by the sheer number of Americans that choose to purchase and live in condos, the disadvantages of condo living aren’t insurmountable. Here are a few disadvantages to weigh against the advantages:

HOA — Some homeowner’s associations can be quite intrusive, with restrictions that may border the ridiculous. Some raise the maintenance fees annually while ignoring maintenance needs.
Space and privacy — most condo complexes have a decided lack of both.
Tenant neighbors — HOAs find it challenging to enforce the complex’s rules on tenants and typically go after the absentee owner. Some owners are diligent about disciplining their tenants, others – not so much.

If you’re leaning toward purchasing a condo instead of a house, be sure that you read every word on every page of the HOA documents that will be supplied to you.

Pay close attention to the Covenants, Conditions & Restrictions (CC&Rs). You must follow these rules when you purchase a condo in a complex. It’s dry stuff but contains all the information you need to determine if this is the right condo for you.

If you have any questions about anything written in those documents, we urge you to take the paperwork to your attorney for a translation.

What to do if your mortgage application is denied

One in 16. That’s the mortgage application denial rate here in the U.S., according to Consumer Reports’ Lisa L. Gill, citing Urban Institute’s data.

“And a too-low credit score is among the top reasons folks can’t get a mortgage, according to HSH.com,” Gill says. Other common reasons for denial include a too-high debt-to-income ratio and spotty or fluctuating income.

You’ll learn the reason from the lender (you must request it, however), but that doesn’t make anyone feel better. Thankfully, there are ways to fix the situation.

Let’s take a deeper dive into the most common reasons for rejection

You’ve no doubt heard about those two ratios that lenders use to determine if you can make a mortgage payment every month: the debt-to-income ratio and the loan-to-value ratio.

These two calculations will play a big part in whether you are accepted or denied for a loan.

The debt-to-income ratio, or DTI for short, is obtained by dividing your gross monthly income by the total amount of your monthly debt payments.

The higher this ratio is, the more likely you are to default, according to lenders. Do the calculations on yours. If it is higher than 40%, this could be the reason you were denied a mortgage.

The loan-to-value ratio, or LTV, is just what it sounds like: the appraised value of the property compared to the amount of money you’re asking to borrow. Again, the lower the ratio, the better.
Troublesome credit score. The main thing the lender wants to determine is the risk it will be taking by lending you money. A low credit score, showing failure to pay bills on time, default on other loans and other factors will make the lender less confident in lending to you.

These are just the most common reasons a mortgage may be denied and there are others.

What you should do if your mortgage application is denied

While it may seem as if your dreams are dashed when your mortgage is denied, there is still hope. Take the following steps:

Don’t wait for the denial letter because by then it’s too late to attempt to overturn it. Call your mortgage broker or officer to determine why it was denied.
While you’re on the phone with the lender, ask for copies of all of the application’s accompanying paperwork.
Use this paperwork to shop among additional lenders, especially those who offer manual underwriting. This option gives the lender the opportunity to “… approve loans other lenders can’t. Provide all of your paperwork and be honest with the lender about the reason for your denial, if you disagree with it,” suggests Denny Ceizyk ENNY at lendingtree.com.
Ceizyk goes on to say that sometimes a loan will be denied because the underwriter has insufficient information to approve it. “A well-written letter of explanation may clarify gaps in employment, explain a debt that’s paid by someone else or help the underwriter understand a large cash deposit in your account. Provide as much detail as possible to prove you have the ability to repay your loan,” he concludes.
If all else fails, consider pursuing a different loan product. Depending on the reason for denial, you may want to consider a FHA-backed loan that offers mortgages to those with less-than stellar credit histories and low-down payments.

While mortgage denial doesn’t mean it’s the end of the road when it comes to buying a home, fixing what needs to be fixed and getting preapproved quickly will enable you to jump into the market at just the right time.

What is PMI (or MIP) and how do I get rid of it?

PMI (short for ‘private mortgage insurance’) is one of those things in life that is both a curse and a blessing. If you put down less than 20 percent of the loan amount when you take out a conventional loan, you will be required to pay a monthly mortgage insurance premium (typically tacked on to your mortgage payment) to cover the lender in the event you mess up and default on the loan.

Without it, cash-poor homebuyers can’t get a mortgage.

With it, your house payments are higher, it takes a long time to get rid of (with some loans it never goes away) and it only protects the lender.

If you have an FHA-backed loan it’s called MIP for mortgage insurance premium. “MIP is required on all FHA loans, regardless of the size of your down payment,” according to Molly Grace at rocketmortgage.com.

“FHA loans require both an upfront mortgage insurance premium (UFMIP) as well as an annual premium payment, or annual MIP,” she concludes.

Mortgage Insurance and the FHA-Backed Loan

Borrowers who were granted an FHA-backed loan prior to June 3, 2013 can get rid of this monthly headache when the loan reaches a 78 percent loan-to-value (LTV) ratio for a 15-year loan.

If you have a 30-year loan you’ll need to wait until your LTV reaches 78 percent AND you’ve been paying the premium for a minimum of 60 months, which is government-speak for five years.

Calculate your LTV by dividing your current loan balance by the current appraised value of the home. Here’s an example of how this works from the experts at bankofamerica.com:

“You currently have a loan balance of $140,000 … Your home currently appraises for $200,000. So, your loan-to-value equation would look like this:

$140,000 ÷ $200,000 = .70

Convert .70 to a percentage and that gives you a loan-to-value ratio of 70%.”

FHA borrowers who put down 10 percent on a home after June 3, 2013 must wait 11 years to have the MIP requirement terminated. If you pay less than 10 percent down – which is the beauty of the FHA loan, after all – you must continue to pay MIP for the life of the loan.

Conventional Loans and PMI

The Homeowner’s Protection Act of 1998 states that homeowners who have a conventional loan on their primary residence, purchased after July 29, 1999 can request a cancellation of PMI once they have 20 percent equity in the home.

The same law says that the lender must automatically terminate PMI on the date that the loan is scheduled to reach a 78 percent loan-to-value ratio – not based on payments made – but according to the date the loan should reach this milestone, as listed on the initial amortization schedule.

The law gives borrowers another way to realize relief from PMI by stating that the lender has to release you from the requirement when you are at the midpoint of your loan’s amortization schedule, regardless of your LTV.

3 Real estate deal killers and how to avoid them

Want to hear something a bit surprising that you won’t hear from the media?

Last year, the folks at Cinch Home Services, a home warranty company, surveyed 1,000 real estate consumers and just a smidge more than half of the homebuyers claimed “… they had a home purchase contract fall through in that time period.” (Realtor.com)

We can chalk most of that up to rising interest rates and their attendant problems.

In “normal” real estate markets, however, the majority of real estate transactions go through without a problem.

Be that as it may, in any market, those transactions that hit a snag run the danger of falling apart.

Thankfully, most of the problems, if handled by professionals, won’t kill the deal. So, let’s learn some strategies to keep the deal alive through three challenging real-world scenarios.

1. The Homeowners Association

If the home you’re buying is in a managed community, you’ll be dealing a bit with the Homeowners Association during the purchase. You will receive a somewhat large amount of paperwork that you’ll need to peruse, often sign and, most likely want to run some of it by your attorney.

These documents contain some very important information and insights about what it’s like to live in the community. Some that you’ll want to pay close attention to include:

HOA meeting minutes
The budget
The CC&Rs (covenants, conditions and restrictions)
Evidence of liens and judgments against the HOA.
Current litigation against the association.

Don’t put off reading the documents or passing them by your attorney. The sooner you can confront problems, the less of a chance there will be for a deal killer to rear its ugly head.

2. Don’t mess up your mortgage approval

It’s a mystery to us why lenders don’t warn their clients that a loan approval isn’t permanent. There are ways to sabotage it and buyers should be forewarned about them.

Here’s a scenario: Marvin is approved for a mortgage and the transaction is sailing along toward closing. One day, he sees an ad for an appliance package with reasonable monthly payments.

The home he is buying lacks appliances, so this deal was too irresistible to pass by.

He has no idea that a “soft pull” is a standard procedure toward the end of the transaction. A soft pull is one last credit check, to ensure that the buyer’s financial position is the same as when he or she was approved for the mortgage.

By the way, it’s called a soft pull because it doesn’t impact the buyer’s credit.

Marvin’s appliance purchases, on credit, changes his debt-to-income ratio enough that he no longer qualifies for the loan. Unfortunately, fixing this problem will take time and money.

Mary committed another common mortgage error – she changed jobs. As in Marvin’s case, this changed her financial position and the loan didn’t close.

The moral of these stories is to keep all finances exactly as they were when you were approved for the loan.

3. Don’t be an unreasonable seller

It’s a very rare home that doesn’t have problems, which is why we recommend a home inspection, even with new home purchases.

As a seller, you should expect that there will be issues revealed by the home inspection. You should also be ready to address a request from the buyers to fix certain issues or pay to have them fixed.

Far too often we see home sellers who refuse to budge and adopt a take-it-or-leave-it attitude. The problem with this is that most buyers will hire a home inspector and he or she will reveal those very same problems.

Like the guy in the movie Groundhog Day, you’ll relive the scenario over and over as your home sits on the market and languishes.

One of the worst things that can happen is a failure to disclose problems that you know about. In fact, in extreme cases, sellers have gone to prison for failure to disclose a problem that caused severe bodily harm and even death.

Not only must you disclose major problems with the home, but “… any potential problem and material defect that could easily affect the value of the property being transacted,” according to the pros at Attorneys Real Estate Group in California.

Both parties in a real estate deal fear its possible delay or cancellation. The biggest reasons a deal falls apart, however, can be avoided by slowing down, thinking clearly, and having realistic expectations. Heed the advice of your real estate agent or attorney, and all should go smoothly.

Mortgage loans for medical professionals

There has been a lot of debate of late over student loan forgiveness. When it comes to these loans, it’s hard to imagine what the debt wracked up by each of 28,337 students who graduated from medical school.

Let’s face it, when it comes to student loans, these former students have a lot of debt and not a lot of provable earnings. Despite this, many want to finally settle down and purchase a home.

And, their newbie-ness in the medical field, a blank credit history or heavy student loan debt won’t stop them from getting a mortgage. Why?

Because of their potential earnings – that’s what lenders care about when it comes to new physicians, dentists, and veterinarians. They know that only 1 percent of physicians default on their mortgage – substantially fewer than the general public, at 10%, according to Ryan Inman at FinancialResidency.com.

Lenders want this business – badly – so they created the doctor loan, also known as the physician loan.

Here are a few of the offerings, which vary by the way, by lender:

Typically there is no or a low-down payment requirement.
Private mortgage insurance (PMI) is waived, even if you put down less than 20 percent of the purchase price.
Debt-to-income ratio restrictions are more relaxed than they are with conventional mortgages.
Lending limits up to $2 million.
Low credit score requirements.
All physician loan programs are available to those with a D.O. degree. “Some lenders also offer loan programs for medical professionals such as dentists, orthodontists and veterinarians with the following degrees: D.S., M.D., P.M.,V.M.,” according to Sidney Richardson at RocketMortgage.com.

Are there drawbacks to these mortgages? Yes. They are commonly not fixed-rate mortgages, but carry adjustable rates (ARM). “With an ARM, you typically pay a lower, fixed interest rate for the first few years of the loan,” explains Richardson.

“After that initial period, however, your interest rate will fluctuate and often increase,” she concludes.

Then, interest rates may be higher for this loan product than the current average mortgage rate.

If you’ve dreamt of purchasing a home and didn’t think you could at this point in your career, we urge you to speak with a lender about physician loans.

Things to consider when you want to buy a house with a pool

Some homebuyers wouldn’t think of buying a home that didn’t offer a swimming pool. You’ll typically find these folks in the warmer parts of the country. Then, there are those who didn’t have a pool on their wish list but fell in love with a home that offers one.

Whichever group you belong to, there are a few things to consider about swimming pools and the homes that wrap around them.

Get as much information on the pool as possible

Boat owners are familiar with the old saying that “A boat is a hole in the water you throw money into.”

The same can be said about a pool, which is a hole in the ground you throw money into.

Naturally, you’ll want to have the pool inspected and find out:

How old it is as well as the age of the equipment
The size
How often it’s used
The history of any maintenance and/or repair issues
Does the pool meet local and state safety requirements?

The answers to most of these questions may help you figure out how much it will cost to maintain the pool.

Maintenance of a pool isn’t quick or cheap

The goal of pool maintenance isn’t just to make it Instagram-ready. You’ll need to keep it sanitized, free of algae, and pH balanced.

If you think you’d like to save money by doing it yourself, you may, but don’t forget the time you’ll spend on the job.

Stacey Freed at AARP.org crunched some numbers and found that if you DIY your pool’s maintenance, plan on spending “… about five to 10 hours of your spare time,” each week on it.

Nicole Shein at BobVila.com lists the bare minimum when it comes to pool maintenance tasks:

Cleaning out debris, such as hair, garden litter, bugs, etc. This is known as “skimming” the pool.
Clean out the pool’s strainer basket. This task helps “… protect the pump from any damaging materials settling in the pool and its plumbing,” claim the experts at Evoqua Water Technologies.
Scrub down the pool’s floor and walls to help prevent algae buildup.
Vacuum the pool. The pool filter doesn’t catch everything, unfortunately.
Refill the pool if needed.
Test the water to determine if it needs additional chemicals.

“It’s a good idea to skim, check the baskets, and make sure the filter is functioning as it should on a daily basis,” Shein suggests.

“Vacuuming and tending to the pool water’s chemical makeup is usually a weekly chore,” she concludes.

Then, there is the cost of the equipment and the chemicals you’ll need to purchase to do it yourself.

You can always hire a professional to maintain the pool. The average monthly cost, nationwide, for this service ranges “… between $110 and $351 per year, with an average cost of $229.” (HomeAdvisor.com)

Take all of this into account when considering a home with a pool.

Maintenance isn’t the only way a pool grabs your cash

Before you sign on the dotted line, contact your homeowner’s insurance agent (you’ve chosen one, right?).

You’ll want to get this insurance nailed down so there are no financial surprises when it comes time to close escrow. But you’ll also want to know how much coverage for the pool will run you.

“… homeowners insurance with a pool is generally priced a bit higher than the typical cost of home insurance,” suggests Christy Bieber, insurance expert for Fool.com.

Shein suggests that some insurers consider an in-ground pool as part of the home, or, it could be classified as an “other structure.”

“Liability” is the name of the insurance game when it comes to swimming pools. Perform your due diligence by having your real estate agent obtain the answers to the questions we suggested above, in the third paragraph.

The most important of these questions is the one about meeting safety requirements. These might include a fence around the pool with a secured gate and/or an alarm.

Does a pool add value to the home?

Good for you to consider a home’s future value before buying it.

When determining whether or not a pool adds value to a home, consider the climate in the region. For Minneapolis or Fargo residents, for instance, a pool isn’t as high on the list of wanted amenities as it is for a buyer in Las Vegas or Phoenix, where it’s likely the pool will get used year-round.

“But if you live in a typical community where some houses have pools but most do not, having a pool built will probably not have any impact on the value of your home,” Robert Taylor, a real estate investor in Sacramento, California, tells Bankrate.com.

If you have additional questions, please let us know. Advice is always free and helping you find the right house for you and your budget is always our goal.

How to find the right real estate agent for your needs

“Are the online real estate agent reviews, such as those at the big real estate portals, reliable?” It’s a question we often hear.

A representative of one of these companies once said “We do have published rules and guidelines around our reviews. In addition, our general Terms of Use is also applicable. Having said this, we are certainly very aware of and keep a close eye on techniques used for submitting fake reviews . . . We take this very seriously. . .”

We think they are reliable, but they should not be the sole source of information on real estate agents you are thinking of working with.

The search for representation in a real estate transaction is something that shouldn’t be entered into lightly. Understand that whomever you hire will be the person/people responsible for steering your transaction to a smooth and lucrative closing. Choose the wrong agent and you open yourself to stress, aggravation and, possibly, loss of money.

So, how do you find the right real estate agent for your needs?

Starting online, looking for social proof is a good place to start. So, yes, read the agents’ reviews on the various aggregator websites, but don’t stop there. Check out the agents’ websites, looking for evidence of their expertise and integrity.

It’s also a good idea that, when you narrow your choices to at least three agents to interview, that you ask each one for references from past clients.

Insist that you be given phone numbers so that you can call each one and ask the tough questions about the service they received.

Ask the right questions

Determine what type of agent you want to work with – what attributes are important to you. We’ve found that most of our clients were looking for someone who was responsive – who actually returned their calls, emails and texts within a reasonable amount of time.

They also complained about other agents who didn’t listen to them.

While asking the right questions of the agent is important, listening to the types of questions the agents ask you is equally crucial.

If you are a homebuyer, did he or she inquire, during the interview, about your loan pre-approval status and explain its importance? If you are selling your home, did the agents ask you about your preferred timeline?

Pertinent questions, specific to your transaction, are important signs that you’re interviewing a good agent.

It takes money to make money

I don’t know who first said that “it takes money to make money,” but he or she nailed it. And the advice is even more important when it comes to selling a home.

Naturally you’ll want to learn all you can about each agent’s marketing plan but it’s even more important to ask about their marketing budgets. A new or part-time agent may be operating on a shoestring. If so, you may receive the bare bones in marketing services.

To properly market a home requires pulling out all the stops, it often requires a balance of both innovative and tried-and-true tactics.

Since first impressions are critical, the referral to a professional photographer and stager are a must. Marketing to multiple platforms is also crucial.

Finding the right real estate agent to sell or buy a home may seem like looking for the needle in the proverbial haystack, but it doesn’t have to be.

Choose an agent with good reviews on Yelp.com. social media and at the big real estate portals and then ask for further proof in the form of testimonials from former and current clients.

During the interviews, sellers should ask the tough questions about marketing and marketing budgets and remember to pay attention to each agent’s listening skills and the questions they ask you.

Questions? Feel free to reach out anytime.