 A homeowner’s association (HOA) is a private organization that oversees a group of homes in a community, common in condominiums, town houses, and master-planned subdivisions. The HOA is managed by a board of directors elected by the community’s residents, and anyone who buys a home in an HOA neighborhood is required to become a member and abide by the organization’s rules. Here’s what an HOA does for you:
Protects Home Values HOAs enforce specific rules designed to maintain uniformity and uphold neighborhood appearances. For example, some HOAs prohibit residents from parking broken-down vehicles on front lawns, letting their grass grow too tall, or building unsightly attractions. An HOA may also enforce noise restrictions and curfews. Well-maintained and safe neighborhoods are more likely to draw in potential buyers. Provides a Sense of Community Forming an HOA fosters a greater sense of community among the residents. Neighbors have the opportunity to meet one another when using their shared amenities, attending HOA meetings, or participating in organized social events such as block parties. Maintains Common Areas and Funds Amenities The homeowner’s association is responsible for maintaining the neighborhood’s common landscaping areas, which sometimes means planting trees and mowing the lawn in front of each home. Many HOAs also feature perks like community swimming pools, playgrounds, or tennis courts, all maintained and funded by the HOA. Enforces Rules and Restrictions With some stricter HOAs, you may need approval to make changes to your home’s exterior—even minor ones such as what color you can paint your door or how high a fence can be. There may also be restrictions on renting out your home or a limit on how many people can live there. Violating HOA rules could result in hefty fines. Determines Costs of Benefits Living in a community with an HOA has advantages, but you will need to pay HOA fees on a monthly or yearly basis. Generally, the more special features the neighborhood has, the higher the HOA costs will be. Living in a community with an HOA can be a great option for homeowners. However, it’s not the right choice for everyone. Consider the benefits and drawbacks of an HOA as you look for your new home.
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 A home warranty provides homebuyers with financial protection and peace of mind. It can be especially beneficial for someone investing in an older home. If an appliance or system covered under the warranty malfunctions or fails, then it will be repaired or replaced at no cost?except for the cost of service.
While some sellers include home warranties in the sale, others do not; in which case, you may want to consider buying a home warranty on your own. What Does It Cover? A basic home warranty will typically provide coverage for the home’s plumbing system, electrical system, heating system, water heater, ceiling fans, garbage disposal, exhaust fans, and some of the kitchen appliances. Enhanced home warranties will often provide additional coverage for washing machines, dryers, garage door openers, air conditioners, and other kitchen appliances. You can also add on individual components such as pools, septic systems, and more for additional fees. How Much Does a Home Warranty Cost? A basic home warranty will typically cost between $300 and $600 per year. This means that when a seller includes a home warranty with the house, it’s actually a nice perk, especially if it’s an enhanced home warranty that provides even more coverage. Keep in mind that even though you may receive a free warranty, you’ll still have to pay a service fee for every repair or replacement you request. What Are the Cons? If the seller isn’t including a home warranty in the sale, then you’ll need to buy a home warranty on your own. If you’re buying a newly built home, it’s unlikely you’ll benefit from the home warranty, simply because the systems and appliances are nearly new. It’s also worth noting that home warranties will not cover appliances or systems that were already broken when you purchased the house. Additionally, you won’t be able to choose your own repair person and are limited to the repair person selected by the warranty company. You also won’t be given the option to repair or replace. If repair is possible, that is the course they will typically take even if replacing it makes more sense.  If you are selling your home in today’s hot real estate market, you will probably encounter every home seller’s dream: multiple purchase offers. Typically, multiple offers result in a bidding war as competing buyers bid up the price of the home. This is great news for a home seller, but there are other things to consider besides the highest price when looking at multiple offers.
The Highest Offer Isn’t Always the Best Offer A higher price can mean it is tougher for a buyer to qualify for a mortgage or come up with enough money for a down payment. If the asking price is already at the top of a buyer’s budget and has gone even higher, their lender might get anxious. Always consider the buyer’s qualifications and whose financing is most likely to go through. Your Home Might Not Appraise for a Higher Price The appraisal is something to keep in mind when you are entertaining offers above the asking price. Chances are that your house was listed near the top end of its market value when you put it up for sale. Multiple offers can drive up the home price and exceed the market value of the home. If this occurs, the mortgage lender will require the borrower to bring cash to the table to make up the difference between the loan amount and the proposed purchase price. Compare Contingencies Every home offer comes with contingencies that are designed to financially protect the buyer. Appraisal contingencies, financing contingencies, and home inspection contingencies all give buyers the option to back out of a contract if an issue arises. The fewer the number of contingencies, the better it usually is for the seller because there are fewer reasons a buyer can get out of the contract. Everything Is Negotiable A home seller with multiple offers has leverage to dictate the terms of the sale. If each purchase price offer is similar, take a hard look at other details in the contract. Does one buyer want you to throw in your children’s outdoor play set or the pool table in your rec room? A buyer who has asked for certain concessions might not be as attractive as one who doesn’t have any concessions, even if their purchase price isn’t quite as high. Consider any timing demands competing bidders are making. Is one of them pushing for a quick closing when you need time to stay in the home? Does one want extra time before moving in because they need to sell their own home first? Any and every buyer demand is negotiable, and the home seller has the upper hand in a situation with multiple offers.  The housing shortage continued into April because inventory levels, a metric the National Association of Realtors (NAR) has been tracking since 1982, were near record lows. At the end of April, there were 1.16 million units available for sale, a 10.5% increase from a month ago but a 20.5% decrease from a year ago. At the current sales pace, unsold inventory would supply the market for only 2.4 months, up from the 2.1-month supply in March but down from the 4.0-month supply in April 2020.
There Is a Good Forecast Despite this, NAR economists predict relief in the coming months. “We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes,” according to Lawrence Yun, chief economist for NAR. “The falling number of homeowners in mortgage forbearance will also bring about more inventory.” In addition, buyer demand was still strong in April despite the lack of inventory. Existing-home sales climbed 20% year over year from January to April 2021. Prices Are Climbing, but Properties Are Selling Quickly An increase in housing inventory levels should help relieve the rapid pace of price appreciation. In April, the median existing-home price climbed to a record-high $341,600, up 19.1% from a year earlier. This capped off 110 consecutive months of year-over-year gains. What’s more, every sales region in the country reported price increases. Yet the high prices seemingly did little to deter buyers, as 88% of homes sold in April were available for less than a month. The average property sold in just 17 days, down from 18 days a month ago and 27 days a year ago. First-Time Buyers Had a Hard Time Finding Homes First-time buyers accounted for 31% of all transactions in April, down from 32% month over month and 36% year over year. According to the NAR “2020 Profile of Home Buyers and Sellers,” the annual share of first-time buyers was 31%. “First-time buyers in particular are having trouble securing that first home for a multitude of reasons, including not enough affordable properties, competition with cash buyers, and properties leaving the market at such a rapid pace,” says Yun. Those cash buyers are typically individual investors or second-home purchasers; these groups represented 17% of all buyers in April, up from 15% a month ago and 10% a year ago. Regional Sales Breakdown Though only the Midwest recorded higher month-over-month sales, each of the four major sales regions in the country saw year-over-year increases.
 Whether you are buying your first house or selling off your family home, there are excellent reasons to enlist the help of a skilled real estate agent. Here are just a few:
1. Pricing Guidance A real estate professional who is familiar with your local market is an invaluable asset when it comes to home pricing and valuation. If you're buying a property, the agent should be able to tell you if it is priced at or above market value. When selling, your agent will be able to tell you what price to list the property to ensure a quick sale and maximum profit. 2. Negotiation Skills An agent handles countless real estate transactions every year and is familiar with negotiation. Using this experience, a skilled real estate agent can get the best deal for their client. Of course, a good agent won't just negotiate on the selling price. They will negotiate concessions on terms such as inspection periods and earnest money. It's worth working with a professional who can ensure you're getting the best deal possible. 3. Insider Information Though some real estate data is available to the general public online, there is information that is only available to a market insider. When trying to buy a home, your agent may know about some houses that haven't even hit the market yet, giving you a head start over the other buyers in your area. When selling, your agent may know of a buyer who is interested in purchasing your property without ever having to list it publicly. 4. Paperwork Preparation Every real estate transaction involves a pile of paperwork; making a mistake on these documents can have huge and expensive consequences. Working with a professional real estate agent will ensure that everything is completed in a timely and accurate manner. All you'll need to do is sign on the dotted line.  A school district's rating is an important consideration when buying a home, at least according to many real estate investors. Homes in top-rated school districts tend to cost more. As a result, buyers sometimes find themselves choosing between nice homes in low-rated school districts and underwhelming properties in better districts. The decision is important for parents who don't homeschool their kids, but what about prospective homeowners without children? For the childless homeowner, the quality of education in a particular district may appear to be irrelevant, but is it?
On paper, buying a home in a low-rated school district can get the buyer more home for less money. But many real estate experts will advise buyers to go for a more expensive home in a better school district for a couple of important reasons. 1. Holds Its Value. Homes in better school districts tend to keep their value, while homes located in average or low-rated school districts devalue the quickest. 2. Easier to Sell. A home in a top-rated school district is usually easier to sell, since it's more attractive to parents. 3. More Buyer Interest. Along with parents, investors often go after homes in good school districts. The result is that these homes get more views on real estate listing websites and sell faster. If buying in a top-rated school district is beyond your budget, there are financial reasons to buy in a less-than-perfect school district. School District Ratings Can Change When a buyer is already paying a premium to be in a top-rated school district, there isn't always a significant potential for gain. Prospective buyers should also keep in mind that homes in good school districts can be risky. The home may only retain its value if the school district continues to be highly rated. If school ratings slip, so will the district's home values. In comparison, a home in a low-rated school district can see its value go up if the district gets a better rating. Property Taxes Are Lower Another reason to buy in a low-rated school district is the taxes. Property taxes tend to be considerably higher in good school districts. While a school district's rating is certainly worth considering, there's much more to home value. For example, nearby amenities and local government can affect a home's resale price. For homebuyers with no plans to have children, those other factors may be more important than the school district.  If you’re contemplating putting your home on the market, it’s a good idea to evaluate what your home has to offer and how it might stack up against the competition. Many buyers prefer features involving comfort and convenience. Here are six common features homebuyers look for:
Open Floor Plans A spacious home is high on every buyer’s wish list. Open floor plans make even modest spaces seem larger simply because your eye can see farther before coming up against a wall. Adequate natural lighting also adds to the feeling of spaciousness. Uncluttered windows free from heavy draperies or blinds allow the maximum amount of light to enter a room. Hardwood Flooring This rich and expensive-looking flooring has grown in popularity in recent years, and it’s also easier to keep clean than carpet. Simply add an area rug to bring a splash of color to the neutral wood. Energy Efficiency Being energy efficient is high on everyone’s list of desirable characteristics. Double- or triple-pane windows help keep the home warm in the winter and cool in the summer and provide great savings on utility bills. If your furnace is decades old, it will never be as efficient as a newer model. Lots of Storage Having numerous places to store belongings is usually on the top of a buyer’s checklist. Adequate closets in bedrooms, storage in the basement or attic, and extra space in the garage will appeal to buyers. Unfortunately, you may not have a lot of control over the available space. Try to make the storage space you do have seem ample by reducing the amount of clutter stored there. Attractive Outdoor Space Decks, patios, fenced-in yards, and exterior lighting are very desirable to homebuyers. Show off the space you have to its best advantage with plants, outdoor furniture, and a grill. This will provide a comfortable atmosphere for entertaining and relaxing. Eat-In Kitchen The kitchen is called the heart of the home for a reason. It provides an informal area for breakfast on the run, children’s meals, and quiet moments to relax with a cup of coffee. Having a spacious, eat-in kitchen is high on the want list for most buyers. You can’t always match all the items on every homebuyer’s wish list. But if you know what most people are looking for, you can arrange your home to emphasize its best features.  Spring is the time to refresh your house and yard with a deep cleaning and an exterior makeover. If you can’t manage this job yourself, then it’s worth hiring a professional service to do it for you.
Make the Exterior Sparkle It’s essential for buyers to have a good first impression. Put in the effort to power-wash siding and walkways so that they are squeaky clean. Clean the Windows Give all windows a good washing, both inside and outside—and be sure to include skylights in the ceilings and sidelights in the doors. Look Up and Clean Up Part of the exterior tidying should include the gutters and eaves troughs. Clean out all debris and wash them thoroughly. Paint Anything That Needs It Make sure to include repainting or staining decks and porches. Paint the front door an attractive color—not gaudy, but not too bland either. Create More Curb Appeal A freshly mowed lawn and trimmed bushes make a property look finished and clean. Touch Up the Garden Planting colorful flowers in existing beds will brighten the garden. Pulling weeds and putting down fresh mulch also gives the property a finished look. Light Up the Night You can place solar lighting along pathways and keep outside lights on in the evening in case potential buyers drive past. Dress Up the Outside Use mats, potted plants, furniture, a hammock, or a swing to decorate entryways, porches, and patios. It gives the home a relaxed appearance and shows off its potential. Check All Locks and Doorbells Even though many buyers will change the locks, making sure everything works gives the impression that a home is well maintained.  f you are getting ready for spring-cleaning, instead of reaching for household cleaning products that contain environmentally harmful chemicals, first consider giving your home a green spring-cleaning with some eco-friendly, inexpensive products that can be found in your kitchen cupboards.
Clean Kitchens and Bathrooms with Vinegar Vinegar is an effective cleaning solution for the kitchen and bathroom. Using a mixture of equal parts water and white vinegar to clean bathroom sinks, bathtubs, floors, and taps will remove hard water stains and make your home sparkle. Vinegar is also an eco-friendly toilet bowl cleaner: Pour undiluted vinegar into the toilet bowl, scrub with a toilet brush, and then flush to rinse. The same solution of vinegar and water can be used to wipe kitchen surfaces and mop floors, but never use vinegar to clean granite or marble. Whenever cleaning with vinegar, always try it on a small area first to make sure it does not damage the surface. Use Lemon to Clean and Deodorize Lemons get rid of unpleasant odors in the kitchen easily and naturally. Scrub your old chopping boards with half a lemon and then put the other half in the fridge to remove odors. Deodorize the drains by pouring a mix of hot water and a little lemon juice down the drain. Bring a refreshing lemon scent into the house by using lemon essential oil for cleaning floors. Lemon oil is a natural but powerful disinfectant, and most people like its fresh fragrance. Add six drops of lemon oil into a 1/2 gallon of lukewarm water, stir well, and use the water to mop the floors or to clean the bathroom. Warning: Do not use lemon essential oil for cleaning wood floors or marble counters as it can cause damage. Scrub Stains with Baking Soda Baking soda (sodium bicarbonate) is an eco-friendly deodorizer and household cleaner that is especially useful in the kitchen. Mix four tablespoons of baking soda with one cup of water and use the mixture to clean your fridge, oven, and microwave, or to get rid of grime on kitchen counters and other surfaces. Let difficult stains soak for a while before wiping them down with a damp cloth. Sprinkle baking soda on pots and pans and scrub to remove the stains.  A typical step in nearly every home-buying process is a home inspection. This is when a certified home inspector examines the house's structure and systems looking for issues such as a cracked foundation, significant termite damage, or improper wiring. The inspection usually occurs after a purchase offer has been accepted and can be a point of renegotiation should problems turn up.
When you're in a seller's market, competition among buyers can lead to bidding wars, causing some buyers to waive contract contingencies such as the home inspection. Redfin, a nationwide real estate listings website, revealed that by midyear 2020, 1 in 5 of the accepted offers handled by their agents included a waiver of the home inspection. But is it a good idea to skip a home inspection? Waiving a Home Inspection Contingency Is Risky It's one thing to have to fix a faulty furnace or replace a dishwasher, but it's another thing entirely if a home has major structural damage. Any structural repairs are costly and sometimes even impossible to fix. Your mortgage provider might even insist on a home inspection before approving your loan depending on when the home was built and where it's located. There are Other Ways to Boost Your Bid When you fall in love with a house and would do anything to get it, you might be tempted to forgo the safeguard a home inspection provides. Consider these alternative options for making your bid stand out: You could remove the appraisal contingency, meaning you'd have to bring more cash to the table if the home doesn't appraise for an amount that suits your mortgage lender. You could be flexible with the closing date, allowing the seller to set the timeline for moving. You could also offer to pay the seller's closings costs. These solutions all mean coming up with more cash, but eliminating the inspection could also wind up being costly. Protect Yourself as Best You Can If you're in an extremely competitive market with multiple-bid situations that might require waiving your contingencies, you could have a contractor or inspector tour homes with you. They might notice problems you don't, and if the problems are big enough, you'll know to avoid the home entirely. Home warranties can also be purchased for around $400 for one year and can be extended for years with additional premiums. To protect yourself further, search public records to see if any permits have been issued for major work on the property, as any large jobs require permits. In hot markets, bidding wars among home buyers are common. It might be tempting to waive your home inspection contingency to make your bid stand out. Consider carefully, though, before taking such a risk and try to protect yourself against any possible ramifications. |