real estate – Easy Agent Blogs

Smart Strategies to Save for a Down Payment on Your Dream Home

Dreaming of buying a home? One of the biggest challenges of the process is coming up with a down payment, a percentage of the home’s purchase price that you must pay at closing.

But don’t worry; with the right strategies, accumulating a cash down payment can become more achievable than you might think.

Let’s explore several simple and practical strategies to help you reach your goal of homeownership.

Set a savings goal

Start by determining how much you need for a down payment. Despite what many Americans assume, 20% down payments are not mandatory. In fact, the average down payment is 6%, according to the experts at Reliance State Bank. Several government-backed mortgage products require much less, depending on your circumstances.

Then, there are down payment assistance programs. Talk to a mortgage professional to understand the specific amount you should aim for.

Then, determine a realistic savings goal based on this amount and break it down into monthly or weekly savings targets. This way, you’ll have a clear roadmap to follow and stay motivated.

Then, make saving that money a no-brainer

Make saving easier by automating your savings process. One of the easiest ways is to dedicate a certain amount of each paycheck and automatically transfer it to your savings account.

This way, a portion of your income is saved before you even have a chance to spend it. Over time, your savings will grow without requiring constant effort or discipline.

Put together a budget

Developing a budget is key to managing your finances effectively. Track your income and expenses to determine what you’re spending on and which categories you can eliminate or reduce your spending.

Trim unnecessary expenses like eating out or subscription services. Consider cooking at home, packing lunches, or exploring free entertainment options. Redirect the money you save towards your down payment fund.

Check out these free budget templates:

Research down payment assistance

Look into down payment assistance programs. These programs, offered by government agencies or non-profit organizations, provide financial assistance to eligible homebuyers.

Depending on the program, they offer low- to no-interest loans, grants, or other assistance to help bridge the gap for your down payment. Consult with your lender for local sources and research, and contact local housing authorities or community organizations to explore these opportunities.

Check out BankRate.com for an informative breakdown of a number of down payment assistance programs.

Boost your income

Consider ways that you can make more money. Look for opportunities to earn extra money, such as freelancing, gig work, or a part-time job. Use the additional income solely for your down payment savings.

Every little bit counts and can bring you closer to reaching your goal faster. Here are some additional ways to pump up your savings account:

Downsize or rent cheaper accommodations

If you’re currently renting a larger or more expensive place, downsizing to a smaller or more affordable accommodation can free up extra funds for your down payment. Look for other ways to reduce your housing costs, whether by finding a roommate, negotiating a lower rent, or exploring more affordable neighborhoods. Temporary sacrifices can lead to long-term gains.

Tap into gift funds

Sometimes, family members may be willing to gift you funds toward your down payment. If you’re fortunate enough to have supportive relatives, discuss the possibility of receiving financial assistance as a gift. Remember that lenders may have specific requirements regarding gift funds, so understand and comply with any regulations.

Save windfalls and bonuses

Whenever you receive unexpected windfalls like tax refunds, bonuses, or inheritances, resist the temptation to splurge and instead direct those funds toward your down payment savings. These unexpected financial boosts can provide a significant jumpstart to your savings goal.

Saving for a down payment requires discipline, but homeownership can become an attainable goal with these strategies. You may be surprised how quickly you’ve accumulated the money needed to purchase your dream home.

Remember, patience and perseverance are key.

DIY solutions to a sticking sliding glass door

Sliding doors have been around longer than most of us think. In fact, archaeologists say that they were somewhat common in “… Roman houses as early as the first century CE,” according to Martin Whitmore, President of US Window and Door.

In those days, however, the doors hung from the ceiling, so they “… were able to move freely …,” Whitmore concludes.

Fast-forward to post-World War II, glass sliding doors became “the most popular type of door in the world,” according to Whitmore.

Americans have a love-hate relationship with these sliding doors. Many homeowners claim that they aren’t attractive, like French doors. Others dislike dealing with the common problems of these doors, such as a lack of security and the multiple malfunctions they have faced over the years.

The fact is, however, millions of homes offer this feature.

The most common malfunction is when the door no longer slides as well as it once did. Fighting with it just to get it closed is beyond frustrating.

The good news is that you don’t always need to call a professional to fix the problem. Let’s explore some simple do-it-yourself (DIY) solutions to help you quickly get your sliding door back on track.

1. Clean the tracks

One of the most common reasons for a sliding door sticking is dirt, dust, and debris accumulating in the tracks. To resolve this issue, start by thoroughly cleaning the tracks.

Begin by removing any loose debris using a vacuum cleaner or a brush. Next, mix a mild detergent with warm water to wipe down the tracks. Scrub gently with a soft or old toothbrush to remove any stubborn grime.

Finally, rinse the tracks with clean water and wipe them dry. This simple cleaning routine can work wonders in restoring smooth operation to your sliding door.

2. Lubricate the tracks

Lubrication might be the key if your sliding door is still sticking after cleaning. Applying lubricant to the tracks can significantly reduce friction and improve the door’s sliding action.

Begin by selecting a silicone-based or Teflon-based lubricant specifically designed for door tracks. “Although they may feel slippery when they’re first applied, grease and oil-based lubricants eventually become sticky and will attract dirt that clogs your sliding glass door tracks,” cautions the pros at GlassDoctor.com.

If you’re unsure when purchasing a product, check the ingredient label. “If you see ‘petroleum’ listed, don’t use it—the lubricant has an oily base,” the Glass Doctor pros conclude.

Apply a small amount of the lubricant to a clean cloth and wipe it along the entire length of the tracks. Make sure to cover both the top and bottom tracks. Move the door back and forth a few times to distribute the lubricant evenly. This simple step can often make a noticeable difference in how smoothly your sliding door operates.

3. Adjust the rollers

Another common cause of a sticking sliding door is misaligned or worn-out rollers. The rollers are located at the bottom of the door and help it glide along the tracks.

To adjust the rollers, locate the adjustment screws on the bottom edge of the door. Using a screwdriver, turn the screws clockwise to raise the door and counterclockwise to lower it. Make small adjustments and test the door’s movement after each turn.

If the rollers are worn or damaged, they may need to be replaced. Consult the manufacturer’s instructions or seek professional assistance to ensure proper replacement.

4. Check the door alignment

Sometimes, a sliding door can stick due to misalignment. Check if the door is properly aligned within the frame. Inspect the top and bottom edges of the door to see if there are any noticeable gaps. If the door is misaligned, you may need to adjust the frame.

Loosen the screws holding the frame in place and gently tap the frame using a rubber mallet until the door aligns correctly. Tighten the screws once the alignment is satisfactory. Remember to make small adjustments and test the door’s movement after each step to ensure proper alignment.

A sticking sliding door can be frustrating, but with a few DIY solutions, you can restore its smooth gliding action without needing professional help. By following these simple steps, you can save time and money and enjoy the convenience of a sliding door that operates effortlessly.

3 things you can do this week to get closer to buying a home

Many Americans are putting their home purchases on hold over the uncertainty about the housing market. While we don’t recommend trying to time the market, it’s certainly understandable that some folks are a bit trepid right now.

Even though you may not be actively looking at homes to purchase right now, there are things you can be doing so that if the opportunity arises you can jump right into the market. Let’s take a look at three of those.

1. Talk to a lender

Sure, we hear a lot about cash buyers but most need a mortgage to buy a home. Get the process started by calling or visiting a lender. Family and friends, colleagues and real estate agents are good go-to sources for names of trusted lenders.

Although the initial consultation is typically quick and involves some number crunching and a list of paperwork you may need to submit, you’ll hopefully find a lender who will take some time to walk you through the process. Check out “The Smart Way to Shop for a Mortgage Lender.”

Some lenders can also counsel you on improving (or maintaining) your credit score over the next couple of months until you’re ready to buy. If not, read up on the process at MyFico.com.

Requesting loan preapproval offers real benefits, including saving time by not wasting it looking at homes you can’t afford.

In addition, “Sellers are looking for pre-approved buyers. Many prefer to entertain offers only from pre-approved buyers,” according to the pros at Capital Bank Home Loans, and we agree.

Finding out where your finances stack up in home loans is always a good idea, so this is an important step.

Preapproval from a lender is imperative, especially if you are close to being ready to buy.

When you call or visit a lender, ask all your questions, regardless of how basic you may consider them. This includes:

Current interest rates
Is a government-backed loan or a traditional loan the best choice for you?
Should you go with a fixed or adjustable-rate mortgage? If you don’t understand the difference between the two, ask.
Which down payment assistance programs are available to you?

2. Talk to a real estate agent

Retaining a real estate agent to help you buy a home is never too early. We are happy to offer you counsel on what to do right now to make you market-ready should the occasion arise sooner than you’d thought.

Sitting down with us briefly may give you insight into the current market, expectations for the future market, and other real estate-related topics you may not have considered.

Then, be sure to regularly visit our social media platforms and blog. We post a lot of educational content that you may not find elsewhere.

Some questions you may need the answer to when we get together:

Which banks or lenders are best for the homebuyer
Can you set up your home search criteria on the website so that you can regularly search for homes for sale?

3. Internet search

Speaking of searching, the sooner you start, the more familiar you’ll become with the process.

Internet searches can help you narrow down your choice of neighborhoods, the prices there, and the types of homes.

Doing drive-throughs of neighborhoods will also help you narrow down the choices. Then, when the time is right, you will have several neighborhoods on which to focus and won’t waste your precious time on those you don’t like.

Three small steps with huge rewards when the time comes to buy your home.

Reach out if you’d like to set up a meeting. We love to talk about houses!

The Pitfalls of Automated Home Values: Why They Often Get it Wrong

In today’s digital age, homeowners and prospective buyers have easy access to a wealth of information regarding real estate. Automated home valuation tools like Zillow’s Zestimate have become increasingly popular for estimating property values. However, these tools are far from infallible and often generate inaccurate estimates.

Sadly, most real estate consumers don’t understand this, leading to overpricing of homes.

In this blog post, we will explore why automated home values are frequently wrong and shed light on the factors on which websites like Zillow base their Zestimates.

Lack of human oversight

One of the primary reasons why automated home values often miss the mark is the absence of human oversight. These valuation tools rely on algorithms and data-driven models to estimate property values, disregarding the subjective factors that can significantly impact a home’s worth.

Automated systems often overlook the home’s unique features, renovations, neighborhood dynamics, and local market conditions. Consequently, this leads to inaccurate estimates, as algorithms fail to capture the full complexity of the housing market.

Insufficient data accuracy and completeness

Automated home valuation tools rely on vast amounts of data to generate estimates. Websites like Zillow aggregate data from various sources, including public records, tax assessments, and previous sales data. However, the accuracy and completeness of this data are not always guaranteed.

The most reliable information comes from an area’s Multiple Listing Service, to which Zillow doesn’t subscribe. Instead, the company relies on information submitted by real estate agents across the country, but not all real estate agents advertise on Zillow. Therefore, the important stuff doesn’t make it into the automated home value.

Then, there are real estate agents (who are required by their MLS to update their listings on that platform within a certain time period) who aren’t held to the same stringent rules.

They often neglect to update listing information on automated home value websites, causing information to become outdated. There’s nothing more frustrating than finding your dream home for sale on Zillow only to learn that it sold a week ago.

Inability to account for unique features and upgrades

Automated valuation tools struggle to account for the unique features and upgrades that differentiate one property from another. This is something a professional appraiser will not miss, by the way.

They often rely on general characteristics of similar homes in the area, failing to consider specific details that can significantly impact a property’s value. Features like a remodeled kitchen, a swimming pool, or a picturesque view can dramatically affect a home’s worth but are challenging for automated systems to accurately assess. Consequently, these tools may undervalue or overvalue a property, leading to misleading estimates.

Ignoring local market dynamics

Real estate markets are dynamic and can vary significantly from one location to another. Automated valuation tools, however, often fail to consider the intricacies of local markets.

They rely on broader market trends and regional averages, which may not accurately reflect the nuances of a specific neighborhood or city. Factors like school district quality, nearby amenities, transportation infrastructure, and local economic conditions can all influence property values, but they are difficult for automated systems to incorporate.

Consequently, estimates may not align with the reality of the local market, leading to erroneous valuations.

Lack of contextual understanding

Another inherent limitation of automated home valuation tools is their inability to accurately comprehend a property’s context. They fail to consider subjective factors such as curb appeal, architectural style, and overall condition.

The emotional appeal of a property, which can significantly impact its value, is challenging for algorithms to gauge. On the other hand, human appraisers can and do, recognize and factor in these nuanced elements when determining a property’s worth, providing a more comprehensive and accurate assessment.

While automated home valuation tools offer convenience and quick estimates, they are prone to significant inaccuracies.

It is crucial for homeowners and prospective buyers to approach automated home values with caution and rely on them as a starting point rather than a definitive measure of a property’s worth. For a more accurate appraisal, engaging the services of a local real estate agent is important if you hope to obtain the most money possible for your home.

How pets can impact your home’s value

I once listed the home of a lovely woman who lived with the love-of-her-life, a young pit-bull, Jade.

Like most puppies, Jade had penchant for chewing – on EVERYTHING. My client came home from work one day to find her living room completely destroyed. The dog had torn the sofa to shreds – even the wood frame. The floor was a sea of shredded foam and chewed-up wood.

The dog had also taken a dislike to the baseboards and decided they had to go as well. Thankfully there were no showings that day and it took almost two weeks to get the unit back into showing condition (and a lock on the escape-artist dog’s crate).

Sure, this example is extreme, but pets damage homes, whether it’s the dark streak on a wall where they’ve rubbed themselves or cat urine in the carpet to even something as minor as hair everywhere. Pets can have a negative impact on your home’s value.

Other ways pets impact home value

Recently I read an interview with a Boston real estate agent who talked about selling a condo that belonged to a woman who owned multiple cats. It sold for $30,000 less than it should have because of the damage caused by her cats.

“When the damage is significant, however, a home could appraise at 2% to 5% less” than market value, appraiser Susan Martins-Phipps tells Beth DeCarbo at the Wall Street Journal.

Then there was an article in Business Insider that claims home values in a neighborhood with barking dogs are reduced between five and 10 percent. So not only might your pet bring down your home’s value, but your neighbor’s pets may impact it as well.

How to deal with existing and future impacts

Of course, you’ll need to repair pet damage before putting the home on the market. But you’ll also need to remove evidence of pets as well, such as hair, odors, stains, and pet paraphernalia, such as food dishes and litter boxes.

Urine in carpets is almost impossible to get out so you may want to think about replacing them. Painting the interior will get rid of rubbing marks on the walls and a lot of odor as well.

Here are a few other tips to ensure your home gives off a homey, not kennel vibes:

If pet odors are extra-heavy, consider hiring a professional to get rid of them.
Avoid the use of air fresheners, incense and scented candles. Certain scents can be turn-offs for some.
Keep your dog groomed during the marketing process.
Vacuum as often as possible.
Give your dog plenty of exercise and attention while the home is on the market. When he’s pooped out, he won’t be as likely to look for ways to beat boredom.
Don’t forget the backyard. If your pooch relieves herself there, you’ll need to ensure she hasn’t left any surprises for buyers who want to check out the area.

Finally, find a place to park the pets during showings. Ideally, that means removing them from the home. Park your pet at the groomer, drop it at the vet for a checkup, take it to doggie daycare, or hire a professional dog walker during showings and open houses.

Since it’s not always practical to remove the pet from the home, crate it, cover the crate with a blanket, and leave a note on the door that there are pets created in the room.

Is Seller Financing Right for You?

Being turned down for a mortgage is disheartening, especially if you’ve worked hard to get one.

But it doesn’t mean it’s the end of the line for your homeownership dream.

There are other options and one of them is seller, or owner, financing.

What is owner financing?

“Owner financing happens when a property’s seller finances the purchase for the buyer,” according to Jean Folger at Investopedia.com.

It differs from a bank loan in that the seller doesn’t provide cash to the buyer, but instead, extends credit.

Seller financed loans are typically short term. They are ideal for the buyer who has met challenges qualifying for a bank loan or meeting traditional credit score requirements.

The homeowner who owns his home free and clear is in the best position to offer financing. Those that still carry a mortgage typically need their existing lender’s permission to offer financing.

The challenge for the buyer seeking seller financing is finding a seller willing to help him out. Most sellers are reluctant to finance — less than 10 percent do – mainly because of the risk that the buyer will stop making loan payments. It is possible, however, to reduce the risk of default.

To get tips on how to reduce the risk, visit Nolo.com.

Then there are the legal and logistical hurdles to overcome. Combined, these challenges convince many sellers that financing the buyer is too much work.

If you need to get the home sold, however, it could turn out to be a blessing.

Benefits for sellers

The biggest benefit for homeowners is the sizable return on investment they realize with seller financing.

Borrowers who typically seek seller financing are considered a higher risk than others. Because of this, sellers commonly charge 8 or 9 percent interest on the credit extended, according to Michele Lerner at BankRate.com.

Offering financing is also beneficial in a buyer’s market, with lots of other homes on the market. It opens your home to a larger pool of buyers and may help sell the home quicker.

The seller is released from paying property taxes, homeowners insurance and maintenance expenses, according to Scott Steinberg at RocketMortgage.com.

Additional seller benefits include:

A faster closing than would be had during the traditional mortgage process.
No closing costs.
The possibility of selling the home as-is.
“Potential to earn better rates on the money that you raised from selling your home than you would from investing the money elsewhere,” suggests Folger.

Benefits for buyers

Seller financing can be a bonanza for buyers with less-than-perfect credit who can’t obtain financing from a traditional lender. Down payment requirements are typically lower as well.

The terms of the loan are negotiable so , while it is unlikely, it’s possible that the buyer may be able to get a better rate than what banks offer. Depending on how the loan is structured, buyers may also get the tax benefits of homeownership.

Types of seller financing

Sellers can choose from a variety of financing options and much of the choice will be based on the buyer’s financial situation. Here’s a quick look at a few of the more common types:

Assumable mortgage – This type of seller financing allows the buyer to take over the seller’s existing mortgage. Not all mortgages are assumable but VA loans and some FHA and conventional mortgages are. You’ll need the lender’s approval with this option.

Land contract — With a land contract, title isn’t conveyed to the buyer but she gets what is known as “equitable title,” a shared ownership until the loan is paid in full.

Lease option – This method allows the buyer to lease the home for a specified amount of time. The rent is typically higher than market rents and there is an upfront fee, akin to a security deposit, except the buyer will forfeit it should he decide not to purchase the home at the end of the lease.

The terms of a lease option are negotiable. This generally includes the length of lease, what portion of the rent is credited toward the purchase and the purchase price. For this reason, there is no standard lease option but numerous varieties.

The all-inclusive mortgage and junior mortgage are two other popular methods of providing seller financing. Ask your real estate attorney for details on these options.

Seller financing can be complicated for those not familiar with it. It is important that both the buyer and the seller obtain the services of a real estate agent.

Don’t hesitate to call us or your real estate attorney with any questions about seller financing.