When scheduling a home inspection, knowing what to do and what to avoid is crucial. Review these common mistakes to ensure a better inspection experience. Attempting a DIY Inspection Trying to do your own home inspection without professional help is a big mistake. While it might uncover obvious issues like weak spots in floors or leaky roofs, DIY inspections often miss hidden hazards like faulty wiring or corroded plumbing. Trusting a licensed and insured professional ensures these hidden dangers are identified, providing peace of mind about your investment. Neglecting to Vet the Home Inspector Start by seeking recommendations from your real estate agent or trusted contacts. Online resources like the American Society of Home Inspectors (ASHI) and the Association of Certified Home Inspectors (InterNACHI) offer tools to find certified inspectors, while the Better Business Bureau can reveal any complaints. Additionally, verify that the inspector meets your state’s regulations, which can be found on the ASHI website. Paying Too Much or Too Little Finding the right pricing balance is crucial. Rates that seem too low might indicate incomplete inspections, while excessively high prices don’t guarantee superior service. Generally, a single-family home inspection ranges from $300 to $500. Prioritize inspectors who are certified, experienced, and capable of thorough examinations. Comparing prices and services from multiple inspectors or companies is wise to make an informed decision that combines affordability with quality. Not Attending the Home Inspection Neglecting the home inspection means missing out on valuable insights. Make sure to attend, ask questions, and grasp potential risks. While it’s encouraged to be present and engage with the inspector, avoid disrupting their process. The length of the inspection varies based on the home’s size and features, typically lasting a few hours. Attending allows you to witness findings firsthand, aiding in assessing their severity and discussing them with the seller. Being present during the inspection helps you better understand the inspection report and make informed decisions about your potential new home. Ignoring the Home Inspector's Warnings The worst mistake is not listening to the home inspector. They are hired to inspect and fairly report findings. Inspection results can help you decide whether to purchase a home and negotiate repairs. Avoiding these mistakes ensures an enlightening and money-saving inspection experience.
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Despite the challenges faced in 2023, experts are optimistic that the 2024 housing market is poised for a comeback. Here are the three most compelling reasons this could be a promising year for the real estate market: 1. Anticipated Surge in Housing Inventory Experts are optimistic due to the anticipated rise in housing inventory. The challenges of limited available homes in 2023 are projected to ease as the year unfolds. With a hopeful outlook for more homes coming onto the market, potential buyers may find a larger range of options, addressing an ongoing concern that hindered the market in the previous year. 2. Favorable Impact of Lower Mortgage Rates Lower mortgage rates stand out as a beacon of hope for the housing market in 2024. As of January 18, rates have dipped to 6.6%, down from the previous week and up slightly from a year ago. The reduction in mortgage rates enhances affordability for homebuyers, potentially launching increased activity in the real estate market. This positive shift is a key element in experts’ confidence about the prospects for the year. 3. Confidence in Economic Growth Experts express confidence in sustained economic growth, a crucial factor contributing to their positive outlook. A strong economy is typically correlated with a robust housing market. As job markets stabilize and income levels rise, prospective homebuyers are more likely to enter the market with increased confidence. Lawrence Yun, chief economist for NAR, expects the real estate market to rebound in 2024, citing lower mortgage rates and an anticipated increase in inventory. However, he emphasizes the need for sustained economic and income growth and a steady buildup of home construction to avoid magnifying the imbalances in homeownership. Quickly transition from winter to spring by changing out these three pieces of home decor. Replace Front Door Decoration Three months ago, the Fraser fir wreath decorated with miniature packages looked adorable on your front door. Now the pine needles and faux berries are out of season, and if it's made of real foliage, it's dried and wilted. Freshen up your front door with a beautiful seasonal wreath made of eucalyptus leaves or wildflowers. Baby's breath, moss, and grapevine are some other materials that add an inviting spring vibe. Add potted plants to your front porch entrance to make it more welcoming. Change Out Pillows Decorative pillows are an inexpensive way to update your living room or bedroom. Heavy, rich fabrics and patterns in plaids and shades of red and green are appropriate for the winter season, but lighter materials in brighter colors and patterns are perfect for spring. Pillows with florals, birds, and farmhouse designs add a touch of whimsy. White is another great option to brighten up your home, and you can even get pillow covers with cute sayings such as "Think Spring" or "Hop to It." You don't have to get overly feminine pillows if that's not your style?there are plenty of more neutral options that are still bright and airy and reminiscent of spring. Add Sheer Curtains During the winter season, blackout curtains and heavy drapes add insulation around drafty windows; they can also block out midafternoon heat in the summer. But blackout curtains make rooms feel dark and block out natural sunlight in rooms that don't get direct sun. If you love your blackout curtains, go ahead and keep them, but consider putting up sheers in rooms that need more natural light, or at least change out dark-colored drapes to lighter ones. Open floor plans, soaring ceilings, and expansive, arched doorways lend an airy, spacious feel to a house. While not every home boasts these features, there’s no need to settle. If your rooms feel cramped, consider these strategies to create the illusion of more space. Light Paint Palette While decor magazines and designers may suggest intricate color schemes and even ceiling patterns, in reality, painting the ceiling of a smaller room anything other than a light shade can diminish its perceived size. Opt for various shades of white to brighten the space and give the ceiling a loftier appearance. Multisource Lighting Dimly lit rooms can induce feelings of confinement. In addition to an overhead light, consider placing floor or table lamps at opposite corners of the room. This balanced lighting approach will make the entire area appear brighter, more inviting, and more spacious. Minimal Window Dressings Natural light breathes life into a room and imparts a sense of spaciousness. Remove heavy curtains or decorative fixtures from your windows to maximize the room’s exposure to natural light. If you must have curtains, choose a sheer fabric that will allow more daylight to pass through. Simplified Wall Decor While posters, artwork, photographs, and shelves offer opportunities for personal expression, an excess of wall clutter can make a space feel confined. Select a few tasteful items and hang them higher on the wall. This draws the eye upward, creating an added sense of height. Sofa Spacing Resist the urge to push all furniture against the walls in an attempt to maximize space. This can actually make the area feel cramped. Instead, try angling furniture away from the walls or pulling it slightly forward. Allowing some space between the furniture and the walls creates a more open and inviting atmosphere. Mirror Magic Although they can’t quite perform magic, mirrors come close by expanding a room’s visual footprint. By strategically placing a large mirror facing a window, you can create the illusion of additional space and amplify the natural light, effectively doubling its impact. By incorporating these strategies, you can effectively create the illusion of a larger, more open space within your home. You might be pleasantly surprised to discover just how much roomier it feels. When looking for a home, one common piece of advice is to choose a property that will appreciate in value. However, value is subjective. For example, a dream home with an in-ground pool for one person might be a hassle for another. These three house hunting tips will aid you in objectively assessing a property’s potential and identifying the assets that tend to appreciate in value the most. Look for Hidden Gem Neighborhoods Some house hunters search for neighborhoods that have already become popular, but buying in a hot neighborhood means you’ve missed out on much of the appreciation. These homes have already seen a boost in value due to the appeal of the area. To find a home that will appreciate in value, focus on neighborhoods with moderately priced houses showing signs of potential growth: well-kept homes, low crime rates, and close proximity to schools or parks. Purchasing before the neighborhood gains popularity ensures you’ll maximize your potential profit. Find the Perfect Fixer-Upper It’s common knowledge that fixer-uppers can be a good investment, but take note: Not everyone is willing to put in the work themselves or able to pay for needed repairs. Some fixer-uppers also have too many issues, such as foundation or structural problems, so you would not be able to recoup your expenses when selling the home. Search for homes that need only cosmetic improvements. The key to finding a worthwhile fixer-upper is to know what tasks you’re willing to do yourself and when you need to call in a professional. Evaluate potential gains by crunching numbers before putting in an offer. Avoid making an offer if a property requires more work than you’re financially prepared to undertake. Prioritize Amenities and Curb Appeal Look for a home with amenities that are always in demand, such as a nice yard, patio, or front yard flower garden. Often, it only takes a fresh coat of paint or a little bit of staging—such as setting out potted plants or patio furniture—to boost curb appeal and entice buyers. Homes near parks, schools, or other local amenities also attract buyers and have a built-in value. Consider the house hunting process through the lens of what your home will be worth in the future. Will it increase in value to make you a considerable profit? Look for attributes that are attractive to a wide range of buyers to help narrow down your search and give you confidence in your new home. Technology has transformed the way homes are appraised, and a new set of rules has emerged for sellers looking to maximize their home’s appraisal value. Understanding modern appraisals is essential, as appraisal value is critical in determining a home’s asking price. Traditionally, home appraisals were done manually by professionals who used their expertise to evaluate properties based on location, size, condition, and market trends. Appraising a home was a mixture between the subjective and the objective, and it often came down to a personal decision by the appraiser. The New Appraisal Landscape Traditional appraisals are being replaced by automation. According to a report by analytics firm CoreLogic, an estimated 70% of residential property valuations in the U.S. are conducted using automatic valuation models (AVMs). AVMs are computer programs that use a property’s data, such as its location, size, age, and historical sales, to estimate the property’s value. The newest AVMs incorporate algorithms that use complex mathematical models to analyze every last piece of available data about a property; this predicts the current and future value with even higher levels of precision. AVMs Need Accurate Data The most important step homeowners can take to prepare for an AVM-based valuation is to ensure their property information is accurate in all government records and also in any informal online listings. This is especially important for older homes whose improvements and renovations might not be reflected in public property records. AVMs have the ability to read the internet, so the more positive data about a property, the better. Make sure any unique features or amenities are thoroughly described in all records. Be Aware That AVMs Have Limitations AVMs may not capture certain aspects of a property, such as its unique features or intangible benefits that are not fully reflected in property records. In these cases, it may be necessary to supplement an AVM with a traditional appraisal. When selecting a traditional appraiser, look for professionals with local experience who will appreciate the holistic value of a home, including less-tangible factors like the view, architectural features, or other aesthetic qualities. New technology always has drawbacks. AVMs aim to eliminate guesswork from home appraisals, but in reality, the human factor always plays a crucial role in determining a home’s actual value. If you’re ready to buy or sell, reach out today! I can help you get the best price for your property in the current market. Existing-home sales saw a decline in June, with every sales region across the country reporting drops in year-over-year sales. However, according to the National Association of Realtors (NAR), month-over-month sales were more variable, with increases in the Northeast, decreases in the South and West, and stability in the Midwest. Home prices, meanwhile, held firm in most regions of the country. According to Lawrence Yun, chief economist for NAR, “limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month.” Who’s Buying Homes? First-time buyers accounted for 27% of all sales in June, down from 28% a month earlier and 30% a year earlier. All-cash sales, meanwhile, made up 26% of all transactions, up from 25% both a month ago and a year ago. Two groups responsible for many all-cash purchases—namely, individual investors and second-home buyers—saw potential in the housing market; these groups purchased 18% of homes in June, up from 15% in May 2023 and 16% in June 2022. The average property remained available for sale for 18 days in June 2023, unchanged from a month earlier and up from 14 days a year earlier. Of all the homes sold in June, 76% were available for under one month. Twice as Much Inventory Needed Although the first half of 2023 was negative for the housing market, with sales down by 23%, economists believe change is coming. “Fewer Americans were on the move despite the usual life-changing circumstances,” Yun hypothesized. “The pent-up demand will surely be released soon, especially if mortgage rates and inventory move favorably.” Yet, by the end of June, total housing inventory sat at 1.08 million units, unchanged from May and down 13.6% from June 2022. At the current sales pace, this level of inventory would supply the market for 3.1 months, up from a 3-month supply in May and down from a 2.9-month supply in June 2022. For market conditions to improve, there needs to be an increase in inventory; according to Yun, the “market can easily absorb a doubling of inventory.” Regional Breakdown Northeast - Existing-home sales annual rate of 510,000; an increase of 2% from May 2023 but a decrease of 21.5% from June 2022. The median sales price of $475,300 represented an increase of 4.9% from June 2022. Midwest - Existing-home sales annual rate of 990,000; unchanged from May 2023 but a decrease of 19.5% from June 2022. The median sales price of $311,800 represented an increase of 2.1% from June 2022. South - Existing-home sales annual rate of 1.91 million; a decrease of 5.4% from May 2023 and 16.2% from June 2022. The median sales price of $366,600 represented a decrease of 1.2% from June 2022. West - Existing-home sales annual rate of 750,000; a decrease of 5.1% from May 2023 and 22.7% from June 2022. The median sales price of $606,500 represented a decrease of 3.4% from June 2022. |
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