Buying March 26, 2019

3 Questions Every Homebuyer Should Ask

Want to take the pain out of homebuying? Keep your lifestyle priorities top of mind.

If you’re planning to buy a new home, there’s great news: More houses have hit the market in recent months. This means you’ve got more options to choose from.

Choice is always good, but it can also be overwhelming.

The key? Careful, disciplined prioritization. 

Let’s go beyond square footage or the number of bedrooms and consider how the property fits your life. By focusing on what matters the most to you, we can refine your search to the closest matches. 

Here are the three questions every potential homebuyer should ask themselves: 

Where do you want to live?
Think beyond your commute. Do you want to be in a specific school district? How much street noise can you cope with? 

Are you looking for an established neighborhood or one that’s up and coming? That could affect future home values

What does the future hold?
Think about the next 10 years. Are you planning to have kids? Will your aging parents move in? 

If you plan to stay for the long haul, you might want a property to accommodate your family today, and in the future. If you know your career will have you on the move, will you want to sell the property or rent it out?

How much work are you willing to do?
When considering condition, be honest with yourself. How much work are you truly willing to take on? 

If the home needs cosmetic updates, will you want them completed before you move in? If you fall for a fixer-upper, do you have a budget for renovations?

Communication is a critical element of your home search. The more information you share, the better we’re able to match you with a home that fits your life.

Got your priorities in order? Let’s find your dream home. Reach out today.

Buying March 19, 2019

How To Help Your Adult Kid Buy: Advice For Mom And Dad

As a parent, it’s hard to watch your kids struggle with anything, but watching them struggle to buy a house can be especially tough. We all want the best for our offspring, and owning a home is one of the best ways to build wealth — so if kids are having trouble taking that step, it’s normal to worry about how they’ll manage when you’re gone.

The good news is this: There’s a lot you can do as a parent to help your kids get their feet on the property ladder. Follow this advice and you’ll be able to both assist your children and ensure that your own financial future is secure.

UNDERSTAND YOUR ‘WHY’

“Because I want to help my child” is a great reason to do just about anything — but a house is a huge financial investment and responsibility, so you need to dig a little bit deeper.

Ask yourself these questions about your child and their life circumstances, as well as your own financial circumstances:

  • How does my kid handle finances?
  • Is my kid in debt? If so, how much is that debt?
  • Does my kid know how to save money?
  • Is my kid living in a real estate market where prices are steadily increasing — and if they don’t get in the door now, they might be locked out for years?
  • Do I want to transfer my wealth to my kid now, when they arguably need it most, or would I rather wait? How would that decision affect my estate taxes and other financial considerations?
  • Is my kid attending a college where they’ll stay for several years? (And would it make sense to buy a house there instead of help them pay rent?)
  • Can my kid already qualify for a mortgage? If so, would it make sense to help them qualify for a bigger one?

After you’ve taken time to answer these questions, you should have a better idea of exactly why you want to help your child buy a house. Whether you want to encourage financial responsibility or help your kid buy a bigger house than they could on their own, knowing why will help guide your decision-making during the process.

MANAGE YOUR OWN CREDIT FIRST

It’s admirable to want to help your kids — but not at the expense of your own financial well-being. So before you make any tangible offers to help, make a full assessment of your income and expenditures, your savings and assets, and decide how much you can afford to give. Put a dollar amount on it, and don’t be tempted to exceed what you’ve decided you can spend.

There are a lot of options for helping your adult kids buy that will directly involve your credit, too. For that reason, all of the advice that applies to buyers also applies to parents who want to help their kids buy — whether you’re buying a home to rent to your kid, or co-signing or co-borrowing the loan, you’ll want to make sure your credit is in great condition. Don’t open a lot of new lines of credit or make any big purchases on credit, and follow all the standard best practices, too, like paying your own bills on time.

And maybe after all this assessment you’ve come to the conclusion that you don’t have a lot of financial help to give. That’s OK! You should know by now that parenting is about much more than spending money, so think about other ways you might be able to help, from offering advice, to connecting your kid with a mortgage broker or real estate agent, to cleaning and repairing the home when it’s time to move in.

GET YOUR KID’S CREDIT IN ORDER

A credit score is really important when it comes to a mortgage loan — it helps the lender figure out how reliable (or not) each borrower is, and it directly influences the interest rate on the loan, which adds up to tens of thousands of dollars over decades.

If your child doesn’t know what their credit score, then help them find it, and then work with them to improve it. Maybe your kid has trouble paying all their bills on time, so help them make a budget or set up automatic payments. Settling debts like student loans or car loans can have a significant positive impact on credit score, so if you’re in a financial position to clear a large debt for your kid, this might be a good time to do it.

Mortgage lenders are also going to look at your child’s bank account statements, seeking red flags like frequent overdrafts. If your kid frequently overdraws accounts, then think about how you might help them balance their finances.

SAVINGS NOW GO A LONG WAY LATER

There are essentially two reasons why you might want to encourage your child to save as much as possible right now. One is obvious: Down payments on houses are expensive, especially if you want to avoid mortgage insurance and put down 20% or more on the home purchase. That 20% of a home’s sales price adds up pretty quickly, and most kids probably don’t have tens of thousands of dollars handy in their bank account.

Another reason to facilitate savings for your kids is, again, the fact that mortgage lenders are going to want to see bank statements, and it will help your kid’s mortgage rate if the lender sees a decent savings account that grows over time instead of being wrung dry every month.

As a parent, there are tons of ways you can help your kids save money, including inviting them to come live at home with you again for a spell, which can decrease their rent payment significantly. If you go this route, then make sure that any agreements you make with your kids about rent and contribution to utilities or household chores are documented and signed.

But you don’t have to invite your kids to live at home again; you also have the option of taking over some of their bills (cell phone, car insurance, utilities or others), dropping off groceries or meals, handing down a gently used appliance or car and buying yourself a new one — there are tons of ways that parents can help subsidize a child’s savings account.

TIME TO BUY? CONSIDER ALL OPTIONS

Once your kid’s credit is in decent order and he or she has a down payment secured, you might not feel like your work is done. Some parents like to chip in with the actual purchase of the home — and if that’s you, fantastic! Just make sure you know what all your options are before you decide on any given path.

An incredibly common way to help your adult kid buy a house is to give them money for a down payment. This is a significant upfront expense for buyers, who may need tens of thousands of dollars to avoid mortgage insurance, and oftentimes parents make that possible.

But backing up your kid’s home purchase with a down payment is far from the only option open to parents. Some choose to buy the house themselves, either as an investment rental where the kid can stay for a few years before selling, or as a rent-to-own deal where the kid pays the parents back for the house over time. If you have the ability to pay cash for a house, this can be an especially good deal for both the child and the parent: You can set an interest rate that’s lower than what the market’s currently dictating (a win for your kid) and make all your money back plus a profit over time (a win for you).

Other parents might prefer co-borrowing or co-signing a mortgage loan. These can be good options for a kid who can already qualify for a mortgage — often, they can increase their price range with a co-borrower or co-signer. Think about both; a co-signer doesn’t accrue any equity in the home and is responsible for the balance of the loan of the borrower defaults, and a co-borrower does accrue equity in the home, but co-borrowing might have a bigger immediate impact on your credit.

COVER YOUR BASES

One thing never to forget about adult kids: They are adults, and adults are going to make their own decisions. And some of those decisions might have an impact on your real estate deal.

Decisions that impact your real estate deal go well beyond paint or landscaping preferences. If your child has a common-law relationship or decides to get married while they’re living in a house that they’re renting from you — or a house that lists you as a co-borrower — and things go sour, that partner could have a claim on your real estate, especially if the partner was paying rent or helping with the mortgage.

Make sure that whatever agreements you’re making with your kids are thought through in their entirety, and do your best to consider any changes or contingencies that might change the agreement. Document them and incorporate them into any legal verbiage for your own protection — and to protect your kids, too. 

Selling March 12, 2019

Make Buyers Feel at Home and Sell Faster

There’s never been a better time to sell a home.

Millennials are ready for homeownership and renters are seeing consistent rent increases. This means more buyers than ever are on the market for a home like yours. 

Home equity is also at all-time highs, which makes now the perfect time to sell and get more cash to put toward your next home.

Considering listing your home? Let’s start with the proven ways to maximize your returns: 

1. Clear the clutter. Crammed closets and overfilled garages can give buyers the impression your property is short on space. Declutter aggressively to accentuate the storage possibilities buyers get excited about. 

Pro Tip: Buyers love to open cabinets and drawers. Clear those spaces, too.

2. Maximize the possibilities. A potential home should be a blank slate — a space buyers can imagine making their own. Keep personal items to a minimum and aim for a neutral look. 

Pro Tip: Set the dinner table so buyers can visualize coming home after a long day.

3. Brighten it up. Expose as much natural light as possible. For darker or interior rooms, use high-wattage bulbs in light fixtures.

Pro Tip: A fresh coat of light paint makes a home feel cheerful and shows pride of ownership.

4. Rearrange the furniture. Can people move around without bumping into furniture? Does the layout invite guests to sit down and relax?

Pro Tip: To invite conversation, don’t make a TV the focal point of any room. 

5. Outside views matter. Exteriors make a critical first impression. Ace yours by repainting your entry door and polishing the door handle. Potted plants on patios or balconies also make the outside of your home feel welcoming.

Pro Tip: Colorful flowers on window sills look great indoors and add to the outside appeal.

Do you need help staging your home? Or maybe you have budget concerns about upgrades needed before you list. Reach out today. Let’s make sure we maximize the appeal of your home, simply and cost-effectively.

Home FeaturesHome Ownership March 5, 2019

33 Ways To Make Your Home Energy-Efficient

Not too long ago in our country’s history, talking about making your house “greener” might get you labeled a hippie tree-hugger. But times change, and as gas, electricity, and water prices creep up, more and more homeowners are seeing the (strong) advantages that come with considering the environment when you make decisions about your household.

Are you interested in making your home more energy-efficient — and saving money in the bargain? You have a lot of options, from cheap to expensive, so read on to discover whether there are some big (or small) energy-saving opportunities that you’re missing.

GET AN ENERGY AUDIT

Most utility companies offer an energy audit, oftentimes for free: They’ll send an expert out to your house to take a look at all your appliances, your lights, your windows, your doors, and more — then make recommendations for changes you can make that will save energy (and money) every month. If you want a personalized rundown of everything you could do to and for your house to make it more energy-efficient and environmentally friendly, an energy audit is a must.

SWAP OUT YOUR LIGHTBULBS

Compact fluorescent or even LED bulbs are more expensive than incandescent bulbs, but they also last at least 10 times longer than incandescents and use only about 25% of the energy of an incandescent bulb.

As your incandescent light bulbs flicker out, consider replacing them with a greener alternative. And if you decide to swap them all out at once, you’ll start seeing a difference pretty quickly in your utility bills!

PAY ATTENTION TO THE SUN

There’s a lot you can do to heat and cool your home without spending any money at all — but you’ll need to keep tabs on where the sun is in the sky. In the northern hemisphere, windows with southern exposure are going to get the most direct sunlight, so start with those. Make note of whether and when the sun shines into your home across every season, then adjust your habits (and your blinds) accordingly.

For example, if the sun is shining directly into your house during the winter season, then you might be able to save some money on your heating bill by opening up all your curtains and blinds in the morning to allow the sun in. But if you’re getting that direct sunlight in the dead heat of summer, then the opposite applies: Close your blinds and curtains in the morning to keep your house cool.

UNPLUG UNUSED ELECTRONICS (OR USE POWER STRIPS)

Did you know that plugged-in chargers, appliances, and other electrical devices still pull electricity from the wall even when they’re not in use or charging anything? It’s true!

To eliminate the constant drain on your electricity, you should unplug any unused devices, or you can also use power strips with an on-off switch. Keep everything plugged in; just flip the switch off when you’re finished using it.

WEATHER-STRIPPING YOUR WINDOWS

Especially in some older houses, sometimes windows might not be entirely airtight — meaning that you’ve got drafts from the outside sneaking hot or cold air into your home against your wishes.

A relatively cheap and easy fix is weatherstripping your windows to eliminate those drafts and ensure that what’s outside doesn’t creep inside and vice versa. It’s as simple as a trip to a hardware store and a few minutes to weatherstrip each window back at the house.

TURN DOWN YOUR WATER HEATER

Hot water feels amazing in the shower … but here’s the thing: Your water heater is constantly working to keep its water consistently hot, and if you’ve got the gauge set at a high temperature, then “consistently hot” takes a lot of energy to maintain.

Take a look at your water heater’s settings and ask yourself if the hot water really needs to be as hot as you have it. Turning down the temperature ten or even five degrees can result in some surprising savings — and you might not even notice when you’re mixing that hot water with cold for your ablutions!

REPLACE YOUR WATER HEATER

The older a water heater is, the more energy it’s going to take to maintain, so if your heater is looking a little spent, consider swapping it out for a newer model.

You can even get a tankless water heater, which heats your water up as you turn the tap on. Not only will your hot water seem inexhaustible, but you’ll also be saving a bunch of energy (and money) by divesting yourself of a 50-gallon tank that’s constantly being heated and re-heated.

COLLECT RAINWATER

Depending on where you live, the weather might be an asset that you haven’t tapped yet. You can’t use rainwater for everything, or even very many things — you can’t drink it, and you won’t want to use it to cook, wash dishes, or bathe with — but if you keep a cistern of rainwater in your yard, then you’ll always have a green way to water your grass and flowers in the spring and summer.

START A COMPOST PILE

You might already have a compost pile if you garden, but even if you don’t, it’s worth considering; you can use compost for any flowers or grass on your property, and some metro areas even have a compost exchange program where you can submit your food scraps and get fertilizer in return. There are also sometimes classes on how to get started composting, and it’ll significantly reduce the amount of trash you’re throwing away every week.

SWAP OUT YOUR SHOWERHEADS

If you like to take long showers, this fix can be especially helpful: Change your current shower head for a low-flow version that uses less water. These often have several settings for pressure and spray so that you can customize your shower experience — and you probably won’t even notice that you’re using significantly less water once you make the change.

BUY A SMARTER THERMOSTAT

You don’t necessarily need a “smart” thermostat for your home (although it’s always nice to change the temperature using a phone app from the couch — just saying!), but if you don’t have a thermostat that you can adjust to change the temperature at different times of the day, then you should definitely invest in one.

For example, you could set your thermostat to lower the temperature of the house by 10 to 15 degrees when you’re at work during the day, and instruct it to start bringing the temperature back up to “normal” an hour to 30 minutes before you arrive home. And many thermostats even let you designate temperature by days of the week, so if you know that you’re almost never home on Saturday night or Sunday morning, you can adjust your temperature accordingly.

AIR-SEAL (AND MAYBE INSULATE) YOUR ATTIC AND BASEMENT

You may know that heat rises, and that applies as much inside your house as it does in the world outside. That means a drafty attic could result in a lot of energy spent keeping the house warm in the wintertime, and it won’t do you any favors in the summer, either. An uninsulated basement can also let in cold air in the wintertime and out in the summertime.

Check to see if your basement and attic are air-sealed and insulated. If not, consider investing in an upgrade.

TURN OFF UNNECESSARY WATER

Even if your faucets aren’t leaking or toilets aren’t running, it can still save a little bit of water to eliminate water to any pipes that aren’t using it. If you have a guest bathroom that gets little use, or a kitchenette that only sees action once a year, then consider turning off the water to those sinks and other outlets.

USE CEILING FANS INSTEAD OF AIR CONDITIONING

Air conditioning is a wonderful invention, and it feels amazing in the heat of the day in the middle of summer — but it sure is an energy hog. Instead of turning on the air conditioning, try opening all your windows and turning on the ceiling fans. When it’s hot outside, sometimes just getting the air moving inside can make a big difference, especially at night after the sun is down.

RECONSIDER SPACE HEATERS, AND USE FANS JUDICIOUSLY

That said, plugging in devices to help keep you cool (or warm) in general are big users of energy, so if you’re serious about cleaning up your carbon footprint, think about whether you can do without that space heater or fan in the window. If not, we understand, but if so, then you’ll see a big difference in your energy usage.

USE COLD OR WARM WATER TO WASH CLOTHES

Some stains just won’t budge without bringing the heat, but for the most part, you clothes will get just as clean in cold or warm water as in hot water. And washing with cold water is also a little easier on the fabrics, making your clothes last a big longer. Most washers have a cold-water setting, so try it the next time you’re washing up a load and see what you think.

ONLY RUN FULL DISH/LAUNDRY LOADS

When the time does come to wash, it will save a lot of energy, water, and money if you make sure you’re only washing full loads of both dishes and clothes. This might mean you have to invest in a bigger laundry basket or buy a few more plates so you won’t run out, so think about the best way you can make sure your loads are as big as possible and then commit to only running the appliances when they’re at full capacity.

ADD SOLAR SCREENS TO WINDOWS

The sun can be used to heat your home without using much energy, and that can be a really nice thing in the wintertime … and not so nice in the summer when you’d really prefer not to heat your home at all. Solar screens can keep the sun out of any windows where it shines in directly, maintaining the cool cavern you’ve carefully cultivated. In the northern hemisphere, they’ll be most effective on south-facing windows.

INSTALL SOLAR PANELS (OR SOLAR SHINGLES)

Solar panels can offset your energy usage (and your bill) by quite a lot, and now there are even more options for making your roof an energy-catching addition to your house. Solar shingles are smaller and less obvious than full panels but still bring the same amount of generation goodness to your roof, so the next time you have to re-shingle the top of your house, look into adding some into the mix.

CHOOSE A ROOF WITH A LIGHT COLOR

The sun beats down on your roof all day, and if you’ve chosen a dark-colored roof, then the roof is absorbing all of that sunlight (and associated heat) every day, which isn’t always ideal. To keep your attic relatively cool, pick light-colored roofing materials; they reflect the sun’s rays more than absorb them, allowing you to maintain climate control down below without using as much energy.

USE RECLAIMED WOOD OR BAMBOO FOR FLOORS

Not all wood flooring is created equal when it comes to environmental friendliness, so if you’re refinishing your floors or building new, consider a renewable wood source that looks good and doesn’t require cutting down more trees. Reclaimed wood is one good option, as are bamboo floors — the plant grows quickly and is replenished by pruning, making it a great choice if you want new floors without the guilt.

ADD SOME STORM DOORS

Every time you open your doors to the outside, it’s letting the outside in. One way to combat this leakage of warm or cool air into the great outdoors is to install storm doors, especially on the most-used entrance to the house. A storm door helps provide an additional layer of protection to the doorway (already a spot where a lot of your air-conditioned or heated air escapes), giving it an extra seal and allowing less to escape when you enter or exit through the door.

UPGRADE YOUR APPLIANCES

If it’s been a while since you looked for a new washer, dryer, dishwasher, or refrigerator, then you might be surprised by how far they’ve come in terms of energy and water usage. Many appliances are now Energy Star certified, meaning they’re more energy-efficient and “green” than their traditional counterparts. When the time comes to upgrade, take yourself online or to a showroom floor and look at how the replacement appliance measures up in terms of energy usage and cost, which can help you make an informed decision about whether spending a little more money now is going to lower your other bills for years to come.

TUNE UP YOUR HEAT AND AIR CONDITIONING ONCE A YEAR

This might be as simple as replacing the filters and as complicated as getting a full service from a professional, but if you just can’t live without that heat or central air in the house, then this is a smart way to ensure your systems are performing at top efficiency (and save money, too). Look at your heating every fall and your air conditioning every spring to make sure you’re getting it all tuned up before you really need it.

REPLACE YOUR DESKTOP WITH A LAPTOP

These days, laptop computers are just as powerful and often a lot more convenient than a desktop. You can get a laptop stand for your desk and use a wireless mouse and keyboard to get the full desktop experience, but running a laptop takes less energy even with similar accessories. Plus, you have the luxury of packing up your entire computer in a single bag.

REPLACE YOUR WINDOWS

Windows are wonderful for letting in light and breezes, but when it comes to the warm or cold temperatures you’ve cultivated inside your house, windows are literal holes to the outside that will render useless your efforts to be comfortable. Your windows should be well-sealed and draft-free, and sometimes there’s nothing you can do to ensure that but replace them. It’s expensive, but you might be surprised how much your windows were contributing to the heating or cooling bill once you’ve taken the plunge and replaced them.

PLANT TREES

A tree on the south side of your house can be a godsend in the summertime, creating a reservoir of cool air that spills over onto your house. It’s an investment that can take a while to mature, but if you know you’re going to be in the house for a while, then planting and caring for some trees around your house will increase your curb appeal while simultaneously making it a more pleasant place to live.

ADD A ROOF RIDGE VENT

For attics that collect and trap a lot of heat, a roof ridge vent can be the perfect way to encourage that heat to escape and never return. They’re vents that keep the attic protected from the elements but allow warm air to exit the attic, and if you’re already getting your roof redone, they could be the perfect solution to a too-hot upstairs floor.

BUY A WIND TURBINE

Like solar panels, wind turbines can offset some of your own energy costs, and they’re usually lower-profile than solar panels. Popping a wind turbine on your roof can generate energy all day, every day, but the return on the investment is going to be highest in homes that usually get a lot of wind, so talk to neighbors (and maybe that energy auditor) to see if they make sense for you.

USE CONCRETE FOR COUNTERS OR FLOORS

If you’re a fan of the industrial look and it’s time to remodel or build, then you could do a lot worse than consider concrete floors and countertops. It’s relatively cheap and easy, requires no mining or tree-felling, and is one of the greenest options available on the market (plus, just think of how good those floors will feel on a hot summer day).

REPLACE TOILETS WITH LOW-FLOW VERSIONS

Every time you flush a toilet, the older versions use gallons of water to clear the bowl. There are a lot of newer models on the market that are low-flow or even have different flush options for water usage on the same toilet. Like showerheads, low-flow toilets are one of those changes that don’t feel like a sacrifice but yield savings on your water bill nonetheless.

XERISCAPE

Green lawns look nice — but in a lot of climates, they use a ton of water and weed-killer to maintain that green, lush look. Many homeowners are turning to xeriscaping as a way to retool their outside space so that it still looks nice — and natural — but doesn’t require a sprinkler to keep up.

Talk to a landscaper about your lawn options and see whether it makes sense to revamp your lawn with some plants and gravel to replace the grass. It looks just as nice (sometimes nicer) and requires a lot less manual labor to maintain.

USE A MANUAL PUSH MOWER

If you live in a region where grass grows like weeds and you don’t need to water, then maybe it makes perfect sense to keep your lawn … but you’ll still need to mow it regularly. One greener alternative to a riding mower or a motorized push version is an old-fashioned manual push mower. They do work, but you’ll be using your own elbow grease instead of gasoline to power the blades, so you’ll get a workout while you mow.

Deciding to make your home more energy-efficient can involve a simple move like turning off water to rarely used sinks and toilets, or as complicated and involved as replacing appliances and installing solar panels. Figure out your ideal level of investment and take things one step at a time — before you know it, you’ll have a green home that saves money without sacrificing comfort.

BuyingHome Financing February 26, 2019

5 Ways to Use Your Refund Toward a Home

Who doesn’t love getting a tax refund? 

It’s exciting to know that your bank balance will get a boost. But remember, a refund isn’t a bonus — it’s your hard-earned money, which is why you should make the most of it.

If you’re thinking of buying a new home this year — whether it’s your first home or the one you plan to retire in — financial planning is critical. 

Expecting a refund? Make a bigger impact on your home purchase with these tips:

1. Lower Your Mortgage Rate: Did you know you can pay “points” up front to lower the interest rate of your mortgage? If you plan to stay in your home for a long time, this could result in significant savings over the life of your loan.

2. Pay Closing Costs: Closing costs average about 2 to 5 percent of the purchase price. Many buyers roll it into their mortgage and pay it off over the life of the loan. But you could use your refund to pay it up front and avoid paying interest.

3. Save for a Down Payment: In some cases, your refund could cover your entire down payment. Some loans only require 3 percent down, so this is more realistic than you might think.

4. Boost Your Credit Score: Paying down your debts can have a significant impact on your credit score and the mortgage rate you’ll qualify for. 

5. Renovate or Update Appliances: Many buyers are tempted to open a line of credit to pay for these purchases, but that could negatively impact your mortgage loan. Using your refund is the smarter move.

Remember, a tax refund is only one factor to consider in your homebuying budget. Get in touch today for a referral to a financial planner or mortgage lender if you need help preparing your budget. Let’s work together to plan your path to homeownership. 

BuyingMoving & Relocation February 19, 2019

11 Steps To Downsizing Your Home

Nothing lasts forever — including a home where you raised a family or lived most of your working life. And it’s a fact of life that suddenly, a place that was perfect for you a decade or two ago might start to feel cavernous and empty (or just contain more square footage than you really want to clean regularly).

If you’re starting to dream about trading in your rambling old house for a smaller cottage or new condo, then it’s probably time to seriously consider downsizing from your current home. Before you start shopping and put your home on the market, though, there are a few things you need to think about and discuss with any family members who’ll be making the journey with you.

CONSIDER YOUR FINANCES

It’s tempting to look up your home on a website like Zillow or Redfin and revel in how much money it’s worth today. So finances might not be top-of-mind when you’re thinking about downsizing — you may believe that you’re guaranteed to save money, but that’s not always the case.

Mortgage rates have been rising steadily, and if you bought or refinanced your home during the years of historic low rates, then you might get a bit of sticker-shock at how much you’ll pay in mortgage interest over the life of the loan. And even as your home’s value has increased, others have, too — so unless you’re also perusing the type of home where you’d ideally move after your downsizing, you might not be prepared to spend what’s necessary on a new place. Also, hopefully your credit score has been maintained or improved since you moved in, but if not, that’s something else you’ll have to consider.

Depending on where you want to move, there might also be homeowners’ association (HOA) restrictions and dues, new taxes to consider if you’re changing counties or moving to a new state, and a number of other fees and expenses that haven’t yet factored into your accounting. If you have a financial advisor, now would be a good time to talk to that person about downsizing and get some background on what it would mean for you financially.

THINK ABOUT SPACE

A lot of people really love the idea of living in a tiny home, but in practice, it’s not always as fun as it sounds. You might be well aware that the amount of house you have is in excess of what you really need, but if you don’t think hard about the right amount of space for you at this time in your life, then wherever you land might also be too big … or too small, on the other end of the spectrum.

Talk to any family members coming with you, if applicable, about what your needs are right now. If you aren’t sure what might feel “right,” then visit some open houses for smaller homes (warning: you might be tempted to buy one — resist!) or, if there’s an IKEA handy, head there for an afternoon and walk through some of the showroom examples. Wherever you go, bring a notebook or use an app on your phone to record the square footage of the home and a few sentences or words to help you remember whether you felt like it was too big, too small — or just right.

In addition to interior space, you’ll want to think about lot size. Do you really want an acre of lawn to maintain, or on the flip side, will you miss having a bit of grass to mow? See if you and any moving partners can come to some kind of resolution about the ideal space guidelines for this new leg of your life.

ASK YOURSELF: CAN YOU CHANGE ENOUGH TO STAY?

Another option to consider while you’re examining your finances is the opposite of downsizing: remodeling and staying put. It’s an increasingly popular solution to the too-much-house problem, and it’s possible that it could be right for you.

Maybe you can convert one floor of your home into a small unit and rent it out, for example. Maybe you need wider stairs, or maybe the bathroom needs an update and some adjustments. If it’s not really the space that’s the issue, but instead it’s the features of the home, then it’s very possible you might be able to get away with updating and revamping some things and then staying where you are.

Talk to a contractor or possibly even an architect (depending on the scope of changes) about what to do and get a ballpark figure for what it might cost, realizing that it’s likely to go over-budget. Then decide whether a big change might be enough to keep you where you are.

DECIDE WHERE TO GO

If you’re bent on moving out of your current place, then the obvious next question that everyone is going to ask — from your relatives to your real estate agent — is “where are you going?”

Maybe you know you want to stay in the same general area, but you want to be a bit closer to amenities like the park or the grocery store. Or perhaps you have it in your head to shift gears entirely and move to a different city or state, or even a different country.

It’s not enough to just want a change — you need to have a goal, a reason for the change, because moving is never fun, and downsizing can be especially taxing. Think about where you’ve always wanted to live and why, and then decide where you’re going to plant your roots for the next set of life adventures.

FACTOR IN COST-OF-LIVING CHANGES

While you’re thinking about your finances, it’s a good idea to also consider whether you’ll be accruing any additional cost-of-living changes. This is best done after you know where you’ll be moving — cost of living might not fluctuate all that much within a city or a county, but if you’re moving to a different state, or from the suburbs to the city or the city to the suburbs, then there might be some additional costs that you’re not used to and therefore aren’t considering.

It might not be a bad idea to talk to a real estate agent or people you know who live where you want to move. Ask them how much groceries and gas cost, what they pay for utilities and parking, and whether they can share any tips or insight into other costs of living. You might discover that it costs an arm and a leg to call up a ride-share car on your phone like you’re used to doing, but that there’s a reasonably priced train that’s very accessible — so increased cost of living items might not be dealbreakers, but they’re still something to understand and consider.

FIND A PLACE TO LAND

Now that you’ve got an idea of where you’re going and how much it will cost, it’s a good idea to start looking more specifically at your housing options. Even if you don’t buy a house or condo immediately, you’ll want to familiarize yourself with how big the homes are in the area where you want to move, and to get a ballpark feel for how much space you’ll have to work with in the new place. If it’s possible, you may also want to get specific measurements for a typical room (including floor-to-ceiling height).

This way you’ll have what you need to evaluate all your stuff — your furniture, your kitchenware, even your clothes — and to start making the tough decisions about what’s going to stay and what has to go.

REPLACING AND SHEDDING FURNITURE

You probably already know that you’re going to be getting rid of some furniture — they don’t call it “downsizing” because you’re adding new items. But knowing exactly what to bring and what to purge can be difficult, especially if you love a particular item of furniture but can’t see its future in your new home.

There are companies that can help you with this exercise (such as everythingbutthehouse.com), and if you decide to go solo, there are also lots of tips on how to furnish a smaller space. First, prioritize your own current furniture by considering its size, its function, and its daily usage. Eliminate any duplicate items — for example, the ten-person dining room set is probably unnecessary if you have a four-person dinette that’s tucked in the breakfast nook.

It might also be worth considering replacing some of your furniture — a bed with drawers underneath the mattress platform could be a better investment than the luxurious but space-hogging four-poster. Make sure you’re taking measurements of anything you buy and comparing it against what you know about your new place so that you don’t wind up cramming way too much furniture into a smaller space.

GETTING RID OF EXCESS BAGGAGE

Apart from furniture, you’ll need to think about all your stuff, the books and decorations and clothes and kitchenware and appliances. The kitchen is another good place to demand multitasking from your gadgets, especially if you’ll be losing cabinet space in the move. There are new appliances that might be a worthwhile investment because they’ll help you get rid of two or three existing appliances, so do a little bit of research before you start making serious decisions there.

This is probably the hardest step, all in all, because there’s a lot that you might want to keep but just doesn’t make sense with your new lifestyle. Instead of considering it a loss, try to think of the baggage-shedding as an opportunity to free yourself from these possessions and find them a new home where they’ll be more appreciated and loved. 

UNDERSTAND YOUR STORAGE OPTIONS

Some condos have a storage closet where you can stash overflow, and if you’re moving into a new house, there might even be a garage, basement, or attic where your boxes can lurk. Whatever the case, think about all your options — including renting a storage unit — and make sure you factor in anything that you currently have in storage and aren’t willing to let go of just yet.

Speaking of renting a storage unit, you should know this: It’s a popular option when downsizing, but if you find yourself with a giant stash of things that you’re going to store, ask yourself how likely it is that you’ll ever go to visit that stuff, pull it out, look at it, or enjoy it in any way. The idea of just putting everything away but still possessing it can be very seductive, but realistically, most of the time you’re just creating another headache for yourself and potentially for the executors of your estate. If you like it, but not enough to keep it in the house with you, then maybe it’s time to say goodbye.

ORGANIZE, ORGANIZE, ORGANIZE

Chaos is part of any move, and downsizing can be especially fraught because there are more moving parts to the process. The more organized you can be at every level, the better this move will go.

Make sure your finances are well-organized to start with, then start applying that focus and detail-orientation to everything else. If you can, sometimes it’s easiest to move yourself out first with anything you know you’re taking with you, then ask your family and friends to help themselves to whatever they might want. After that, you can sell the rest — either in bulk to a company or service like everythingbutthehouse.com or piecemeal, depending on your preferences — or donate it; there are many donation services that will come pick things up from your house so you don’t have to cart them into a donation center.

“A place for everything and everything in its place” is an aspirational goal for many of us, but when you’re downsizing, try to make it your (at least temporary) mantra. It will guide you through the downsizing process and help keep you organized to boot.

MAKE THE MOVE

When it’s finally time to execute, it’s very common for downsizers to be seized with second thoughts. Will you like your new home as much as your old one? Will you miss your things too much to fathom? What if you’re making a huge mistake? What if you change your mind?

The good news is that humans, despite hating the idea of change, are highly adaptable creatures. Make a list of all the things that you don’t like about your about-to-be-downsized house and lifestyle, and refer to it often throughout the process. You can even pull it back up in the new place to remind yourself why you moved if something is frustrating or annoying you. But within a few weeks or months, it’ll be hard to imagine how you ever managed before downsizing, so in the meantime, trust the process and find a solid team that can help you get from your oversized starting line to the just-right finishing line.

BuyingHousing Trends & Market UpdatesSelling February 12, 2019

Preparing for the Spring Housing Market

We’re approaching spring, which means the housing market is getting ramped up. 

Experts agree that the market is softening for buyers, but will it be a full-on buyer’s market? Definitely not — at least, not by springtime. 

This spring, buyers will likely see fewer bidding wars, slower price growth and less competition. But sellers will still have some leverage.

Are you thinking of buying or selling a home this spring? Keep these things in mind:

1. Prices won’t skyrocket.
The last few years have seen massive jumps in home prices, especially during the busy spring buying season. This year price growth is likely to slow down a bit in most markets. We may see higher prices at the height of the buying season, but they’re unlikely to be drastically higher than those seen at the end of 2018.

2. Year-over-year inventory will likely remain stagnant.
Because mortgage rates are rising, many homeowners are staying put. New home construction continues to grow, but it still lags behind buyer demand. This means we are unlikely to see an increase in listings from previous years. 

3. Bidding wars will lessen.
The days of sight-unseen offers and heated bidding wars are mostly over. Except for a few hotter markets, most buyers will enjoy a slower-paced market and a little more leverage than in years past. 

4. Sellers might have to make some concessions.
As mortgage rates rise, fewer buyers are looking to get in on the market, and that means sellers will need to do more to get their attention. This could mean more concessions and more room for negotiations.

Having a knowledgeable agent on your side is crucial to effectively navigating 2019’s changing housing market. If you’re considering buying or selling this year, get in touch today for personalized advice and guidance.

Home FinancingHome Ownership February 5, 2019

Take Advantage Of These Common Homeowner Tax Breaks

Being a homeowner definitely has its advantages, and saving money on your taxes each year just might be at the top of the list. Make sure you’re taking advantage of these common tax perks as a homeowner:


1) Mortgage interest
One of the most common tax perks, you can deduct mortgage interest for your primary residence, and for a second home as long as you mean certain conditions. 

2) Equity loan interest
If you have a line of credit or home equity loan, you may be able to deduct some of the interest within IRS limits. 

3) Property taxes or real estate taxes
State or city property taxes are fully deductible from your income. Your mortgage lender may have required you to set up an escrow account, and in this case, you can only deduct escrow money held for property taxes when the funds are used to pay the property taxes. Keep in mind that if you receive a refund on city or state property taxes, this will reduce your federal deduction.

4) Points
On your fee schedule from your lender, you’ll probably notice some different charges. One charge is called, “points” and one point equals 1% of your loan principal. It’s common for home loans to have 1-3 points and you can deduct all points associated with a home purchase mortgage. If you have refinanced loan points, you can also deduct these, but only over the life of the loan, and not all at one time. If you refinance, you can deduct the balance of the old points and begin to amortize the new right away. 

5) Costs associated with moving for work
If you moved to a new home for a new job, you might be able to deduct some of your moving expenses. There are some stipulations to qualification, like your new job has to be at least 50 miles away farther from your old home than your previous job was. Some of the moving expenses you might be able to deduct include costs for storage, transportation, and lodging.


6) Home improvement loan interest
If you’ve completed some home improvements that are considered a “capital improvement” and took out a loan to cover the upgrades, you can deduct the interest on it, with no upper dollar limit. The home improvements can’t be for ordinary repairs like drywall repair, painting, fixing gutters or patching a roof–they need to be renovations that contribute to increasing the property value of your home. Items such as a new roof, pool, a garage, addition, landscaping, or insulation would all likely qualify.

7) Home office deduction
If you work from home and have a dedicated home office that you use exclusively for your work, you may be able to deduct a portion of your home costs such as a percentage of depreciation and insurance. 

8) Selling costs
If you sell your home, you might be able to reduce your taxable capital gain by the amount of your associated selling costs. Some of the selling costs that you can deduct from your profit include legal fees, inspection costs, title insurance, broker’s commissions, and title insurance.

9) Capital gains exclusion
If you’re married, file taxes jointly, and sell your home, you can keep up to $500,000 in profit on the sale of a home as long as it was your principal residence for at least 2 of the past 5 years. Married couples filing separately, as well as singles, can keep up to $250,000 each, tax-free. 

10) Buying a home for the first time
If you’re a first-time homeowner, you might be able to withdraw up to $10,000 from a traditional IRA without a penalty to help cover the costs of purchasing a home. 

 

Work with a tax professional to help maximize all the tax breaks for your unique situation. Need a recommendation for a tax professional or have questions? Get in touch!

Home Features January 29, 2019

Smarter Technology for a Smarter Home

Smart tech has come a long way for homeowners. With the right tools, you no longer have to get up to turn on lights or change the thermostat. Have a habit of forgetting to lock the front door or turn on your porch light at night? Smart home tech can help with that, too. 

Are you thinking of installing a few smart devices in your home? Here are some of the most popular and practical options to consider:  

Security Products
This includes motion-activated doorbell cameras, door locks with timers and garage doors controlled by smartphone apps. These technologies can offer peace of mind for homeowners who live alone and added independence to anyone with limited mobility.

Lighting
Motion detecting exterior lights are the most publicized in this category. However, there are also indoor sensors that control lights as you enter and exit a room or open and close pantry doors. And Wi-Fi-enabled lightbulbs allow you to customize mood lighting throughout the house. These options offer convenience while at home and added security when you’re away.

Appliances 
Virtually all appliances come in smart versions today — from kitchen scales with built-in recipes to Bluetooth-enabled slow cookers to washers and dryers that let you schedule your laundry loads. These can make housework more manageable for those on a busy schedule.

Assistants 
These smart home tools do more than give you traffic updates. Using IFTTT (If This, Then That) customization, they can create a truly connected home. For example, they can turn on specific lights when your TV comes on or open the garage door when you get within a certain distance of the property. And they allow you to voice-activate many of your smart tech commands.

Smart home devices are also one of the most in-demand features with today’s homebuyers. Installing them could increase your property’s long-term value and marketability. 

If you’re considering a new home, or have questions about your home’s value, get in touch today.

Home Maintenance Tips January 22, 2019

Make The Most Of Your Hamilton County Kitchen Space! 7 Time-Tested Organizing Tips

Out of all the rooms in your home, your kitchen gets the most traffic. Whether you’re getting ready to stage and sell your Indianapolis home, or you’re unpacking kitchen items into your new home, you’ll want to have it perfectly organized to suite your life.

Here are some smart and simple tips to get the most out of your kitchen organization:

  1. Declutter. If the contents of your kitchen are overflowing, the first thing to do is get rid of what you don’t need. The best way to figure out what stays and what goes? Empty the contents of your kitchen drawers into a storage bin. If you use an item from the bin, it goes back in the drawer. After about a month, donate what’s left in the box to charity.
  2. The perfect pantry. Organize your pantry based on how frequently you use each item. Things like your slow cooker or roasting pan can stay on the top or bottom shelf, while you’ll want to have easy access to everyday items. Purchase a single brand of airtight clear containers to hold dry goods like pasta, grains, and cereal, so you can easily see what you have on hand. If you have children, place snacks at a kid-friendly height. Also, store canned goods with the labels facing outwards, with the nearest expiration dates at the front.
  3. Kitchen counters. Counters are your workspace, and when you’re showing your home, they need to be completely clear-yes, this means nothing should be stored on your countertops. If you’re not selling your home anytime soon, your counters should still be kept clean. Keep small appliances out and ready that you use daily like the coffee maker or toaster but stow away items you use less frequently such as a food processor or stand mixer.
  4. Dishes and cutlery. Think of your kitchen in terms of workstations. If you usually plate your food straight from the stove or oven, storing plates, bowls, and utensils nearby will save you time. Serveware and dishes that you only use a few times a year, can be stored out of the way in cabinets or in your pantry.
  5. Pots and pans. You can save money instead of purchasing that pot rack that displays your pots and pans for all your company. This is generally a no-no. Potential buyers don’t need to see your used pots and pans. For easy cooking, store pots and pans in lower cabinets near the stove, and use the cabinet door space, or a magazine holder to keep lids in order.
  6. Spices. Similar to your pantry, store spices according to the ones you use most often. The best place for spices is a drawer near the stove (but not right next to it, because heat can spoil them). Keep the spices you use frequently near the front of the drawer and label the tops with their contents for quick cooking.
  7. Refrigerator. There are ideal spots for each kind of food. Store meat at the bottom, where it’s coldest, so leaks can stay contained. Keep dairy products on the upper shelves where the temperature is most constant, and stow bottles in the doors where it’s not as cold. Keep items that need to be eaten first near the front of the fridge, so you can enjoy these before they spoil.

Not sure where to start? For more storage or organization questions, get in touch with your local realty expert!