4 REASONS WHY END OF FORBEARANCE WILL NOT LEAD TO A WAVE OF FORECLOSURES

4 Reasons Why the End of Forbearance Will Not Lead to a Wave of Foreclosures

With forbearance plans about to come to an end, many are concerned the housing market will experience a wave of foreclosures like what happened after the housing bubble 15 years ago. Here are four reasons why that won’t happen. 

1. There are fewer homeowners in trouble this time 

After the last housing crash, about 9.3 million households lost their home to a foreclosure, short sale, or because they simply gave it back to the bank. As stay-at-home orders were issued early last year, the overwhelming fear was the pandemic would decimate the housing industry in a similar way. Many experts projected 30% of all mortgage holders would enter the forbearance program. Only 8.5% actually did, and that number is now down to 3.5%. As of last Friday, the total number of mortgages still in forbearance stood at 1,863,000. That’s definitely a large number, but nowhere near 9.3 million.

2. Most of the 1.86M in forbearance have enough equity to sell their home 

Of the 1.86 million homeowners currently in forbearance, 87% have at least 10% equity in their homes. The 10% equity number is important because it enables homeowners to sell their houses and pay the related expenses instead of facing the hit on their credit that a foreclosure or short sale would create.

The remaining 13% might not all have the option to sell, so if the entire 13% of the 1.86M homes went into foreclosure, that would total 241,800 mortgages. 

To give that number context, here are the annual foreclosure numbers of the three years leading up to the pandemic: 

2017: 314,220 

2018: 279,040 

2019: 277,520 

The probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures coming out of the housing crash 15 years ago. The number does, however, draw a similar comparison to the three years prior to the pandemic. 

3. The current market can absorb any listings coming to the market 

When foreclosures hit the market in 2008, there was an excess supply of homes for sale. The situation is exactly the opposite today. In 2008, there was a 9-month supply of listings for sale. Today, that number stands at less than 3 months of inventory on the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains when addressing potential foreclosures emerging from the forbearance program:

“Any foreclosure increases will likely be quickly absorbed by the market. It will not lead to any price declines.”

4. Those in power will do whatever is necessary to prevent a wave of foreclosures Just last Friday, the White House released a fact sheet explaining how homeowners with government-backed mortgages will be given further options to enable them to keep their homes when exiting forbearance. Here are two examples mentioned in the release:

“For homeowners who can resume their pre-pandemic monthly mortgage payment and where agencies have the authority, agencies will continue requiring mortgage servicers to offer options that allow borrowers to move missed payments to the end of the mortgage at no additional cost to the borrower.”

“The new steps the Department of Housing and Urban Development (HUD), Department of Agriculture (USDA), and Department of Veterans Affairs (VA) are announcing will aim to provide homeowners with a roughly 25% reduction in borrowers’ monthly principal and interest (P&I) payments to ensure they can afford to remain in their homes and build equity long-term. This brings options for homeowners with mortgages backed by HUD, USDA, and VA closer in alignment with options for homeowners with mortgages backed by Fannie Mae and Freddie Mac.”

When evaluating the four reasons above, it’s clear there won’t be a flood of foreclosures coming to the market as the forbearance program winds down. 

Bottom Line As Ivy Zelman, founder of the major housing market analytical firm Zelman & Associates, notes:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

Are Rising Home Prices Impacting Your New Worth?

The Right Home for Right Now

Finding a New Home for Your Next Stage of Life Imagine the first place you lived as a young adult. Now imagine trying to fit your life today into that space. Not pretty, right? For most of us, our housing needs are cyclical.1 A newly independent adult can find freedom and flexibility in even a tiny apartment. That same space, to a growing family, would feel stifling. For empty nesters, a large home with several unused bedrooms can become impractical to heat and clean. It’s no surprise that life transitions often trigger a home purchase. While your home-buying journey may not look like your neighbor’s or friend’s, broad trends can help you understand what to keep in mind as you house hunt. No one wants to regret their home purchase, and taking the time now to think about exactly what you need can save a lot of heartache later. The Newly Married or Partnered Couple The financial and legal commitment of marriage has provided a springboard to homeownership for centuries, though these days more couples are buying homes without exchanging rings. In the last few decades, changing demographics have shifted the median age of first marriage and buying a first home into the late 20s and early 30s, planting most newly married or partnered buyers firmly in the millennial generation.2,3 But no matter your age, there are some key factors that you should consider as you enter into your first home purchase together. Affordability is Key There’s no doubt about it—with high student loan debt and two recessions in the rearview mirror, many millennials feel that the deck is stacked against them when it comes to homeownership. And it’s not just millennials—Americans of all ages are facing both financial challenges and a tough housing market. But stepping onto the property ladder can be more doable than many realize, especially in today’s low mortgage rate environment. While many buyers are holding out for their dream home, embracing the concept of a starter home can open a lot of doors.4 In fact, that’s the route that most first-time homebuyers take—the average home purchase for a 20-something is about 1,600 square feet. While the average size increases to around 1,900 square feet for buyers in their 30s, it’s not until buyers reach their 40s that the average size passes 2,000 square feet.5 Chosen carefully, a starter home can be a great investment as well as a launchpad for your life together. If you focus on buying a home you can afford now with strong potential for appreciation, you can build equity alongside your savings, positioning you to trade up to a larger home in the future if your needs change.6 Taking Advantage of Low Mortgage Rates Mortgage rates are historically low, making now the perfect time to purchase your first home together. A lower interest rate can save you tens of thousands of dollars over the life of your loan, which can significantly increase the quality of home you can get for your money. But what if both halves of a couple don’t have good credit? You may still have options. First, boosting a credit score can be easier than you think—simply paying your credit cards down below 30% of your limit can go a long way. But if that’s not enough to boost your score, you might consider taking out the mortgage in only the better-scoring partner’s name. The downside is that applying for a mortgage with only one income will reduce your qualification amount. And if you take that route, make sure you understand the legal and financial implications for both parties should the relationship end. Commute and Lifestyle Considerations Whether you’ve lived in a rental together for years or are sharing a home for the first time, you know that living together involves some compromises. But there are certain home features that can make life easier in the future if you identify them now. The number of bathrooms, availability of closet space, and even things like kitchen layout can make a big difference in your day-to-day life and relationship. Your home’s location will also have a significant impact on your quality of life, so consider it carefully. What will commuting look like for each of you? And if you have different interests or hobbies—say, museums vs. hiking—you’ll need to find a community that meets both your needs. Need some help identifying the ideal location that fits within your budget? We can match you with some great neighborhoods that offer the perfect mix of amenities and affordability. The Growing Family Having kids changes things—fast. With a couple of rowdy preteens and maybe some pets in the mix, that 1,600 square foot home that felt palatial to two adults suddenly becomes a lot more cramped. Whether you’ve just had your first child or are getting to the point where your kids can’t comfortably share a bedroom any longer, there’s plenty to consider when you’re ready to size up to a home that will fit your growing family. The Importance of School Districts For many parents, the desire to give their kids the best education—especially once they are in middle and high school— surpasses even their desire for more breathing room. In fact, 53% of buyers with children under 18 say that school districts are a major factor in their home buying decisions.7 Of course, better funded (and often higher ranking) schools correspond to higher home prices. However, when push comes to shove, many buyers with kids prefer to sacrifice a bit of space to find a home in their desired location. But when you’re moving to a new community, it can be tough to figure out what the local schools are actually like—and online ratings leave a lot to be desired. That’s why talking to a local real estate agent can be a gamechanger. We don’t just work in this community; we know it inside and out. We’ll be happy to share our first-hand knowledge of the local schools and which neighborhoods are most welcoming to families. Lifestyle Considerations For many families, living space is a key priority. Once you have teenagers who want space to hang out with their friends, a finished basement or a rec room can be a huge bonus (and can help you protect some quieter living space for yourself). A good layout can also make family life a lot easier. For example, an open plan is invaluable if you want to cook dinner while keeping an eye on your young kids playing in the living room. And if you think that you might expand your family further in the future, be sure that the home you purchase has enough bedrooms and bathrooms to accommodate that comfortably. Functionality Try to think about how each room will fit into your day-to-day. Are you anticipating keeping the house stocked to feed hungry teenagers? A pantry might rise to the top of the list. Dreading the loads of laundry that come with both infants and older kids (especially if they play sports)? The task can be much more bearable in a well-designed laundry room. Imagine a typical day or week of chores in the house to identify which features will have the biggest impact. Chances are, you won’t find every nice-to-have in one home, which is why identifying the must-haves can be such a boon to the decision-making process. We can help you assess your options and give you a sense of what is realistic within your budget. The Empty Nesters When we talk about empty nesters, we usually think about downsizing. With kids out of the house, extra bedrooms and living space can quickly become more trouble than they’re worth. While the average buyer under 55 trades up to a larger home, buyers over 55 are more likely to purchase a smaller or similarly sized but less expensive home. Even in the highest age groups, the majority of home purchases fall in the single-family category. According to research by the National Association of Realtors, by the time buyers reach their 70s, the median home size drops to 1,750 square feet.5 But there’s plenty for empty nesters to think about besides square footage. Maintenance and Livability What factors are driving your decision to move? Identifying those early in the process can help you narrow down your search. For example, do you want to have space for a garden, or would you prefer to avoid dealing with lawn care altogether? What about home maintenance? In many cases, a newer home will require less maintenance than an older one and a smaller one will take less time to clean. You may also want to consider townhomes, condos, or other living situations that don’t require quite as much upkeep. Lifestyle Considerations Many empty nesters have retired or are nearing retirement age. This could be your chance to finally pursue hobbies and passions that were just too hard to squeeze into a 9-5. If you’re ready to move, consider how you’d like to spend your days and seek out a home that will help make that dream a reality. For some, that might mean living near a golf course or a beach. For others, being able to walk downtown for a nice dinner out is the priority. And with more time to spend as you wish, proximity to a supportive community of friends and family is priceless. Ability to Age in Place Let’s face it—we can’t escape aging. If you’re looking for a home to retire in, accessibility should be front-of-mind.8 This may mean a single-story home or simply having adequate spaces on the first floor to rearrange as needed. While buying a home that you plan to renovate from the start is a viable option, being forced into renovations (because of the realities of aging) a few years down the road could seriously dig into your nest egg. Location matters, too—if your family will be providing support, are they close by? Can you easily reach necessities like grocery stores and healthcare? While it’s tempting to put it out of our minds, a few careful considerations now can make staying in your home long-term much more feasible. Finding the Right Home for Right Now One thing is for sure—life never stands still. And your housing needs won’t, either. In the United States, the median duration of homeownership hovers around 13 years.9 That means many of us will cycle through a few very different homes as we move through different life stages. At each milestone, a careful assessment of your housing options will ensure that you are well-positioned to embrace all the changes to come. Whatever stage you’re embarking on next, we’re here to help. Our insight into local neighborhoods, prices, and housing stock will help you hone in on exactly where you want to live and what kind of home is right for you. We’ve worked with home buyers in every stage of life, so we know exactly what questions you need to ask. Buying a home—whether it’s your first or your fifth—is a big decision, but we’re here to support you every step of the way. Sources: 1. Freddie Mac - http://www.freddiemac.com/blog/homeownership/20190104_homebuying_lifecycle.page 2. PRB - https://www.prb.org/usdata/indicator/marriage-age-women/snapshot/ 3. Experian - https://www.experian.com/blogs/ask-experian/research/average-age-to-buy-a-house/#:~:text=Buying%20a%20first%20home%20will,by%20real%20estate%20marketplace%20Zillow 4. Nerdwallet - https://www.nerdwallet.com/article/mortgages/starter-home-forever-home 5. NAR 2020 Home Buyers and Sellers Generational Trends Report - https://cdn.nar.realtor/sites/default/files/documents/2020-generational-trends-report-03-05-2020.pdf 6. Investopedia - https://www.investopedia.com/personal-finance/what-look-starter-home/ 7. NAR 2019 Moving With Kids https://www.nar.realtor/research-and-statistics/research-reports/moving-with-kids 8. Kaiser Health News - https://khn.org/news/baby-boomers-aging-aging-in-place-retrofit-homes/ 9. National Association of Realtors - https://www.nar.realtor/blogs/economists-outlook/how-long-do-homeowners-stay-in-their-homes#:~:text=As%20of%202018%2C%20the%20median,varies%20from%20area%20to%20area

Let's get ready to look at homes!

When most people think about buying a home, they think about neighborhoods, paint colors, and wish lists, not paycheck stubs and closing costs. However, in reality you’ll probably find that mortgage application and approval is one of the more time and energy-consuming aspects of the purchase process. Do a little work upfront & save a lot of time & trouble later on. Check (and Repair) Your Credit When you first start thinking about buying a home, you’ll want to do a deep dive into your credit. Check with each of the big three reporting agencies (TransUnion, Experian, and Equifax) since each may have different information. If there are errors on your reports, reach out with corrections and required information. If your credit is just not great, there are ways to improve it. Here’s are a few suggestions: • If you don’t have much credit, look for ways to build your credit record. Seek out a starter credit card, make regular, small charges and pay them off immediately. Look for programs that report your current rent and utility payments to the credit bureaus so that you can use your on-time payment record to build your credit score. • If you have damaged credit, work on paying down existing debt and making on-time payments going forward. If you pay your rent and utilities on time, seek out reporting programs to allow you to use your positive payment history to rebuild your credit score. • As you pay off credit cards and loans, don’t close out the accounts. Leave them open and at a zero balance, or use them for occasional, small purchases that you then pay off immediately. Part of your credit score comes from the length of time that you have had your accounts, so closing out an older account can have a negative impact.

Organize Your Financial Records One of the biggest things you’ll have to do during the process of applying for your home loan is obtaining and providing a wide variety of financial records to submit to underwriting. Start gathering these now. When you apply, you’ll need the following: • Tax returns (generally two-year’s worth) • Pay stubs, 1099s, W-2s or other proof of income • Bank statements and other asset statements • Photo ID If you are using gift funds from a family member to finance your down payment, closing costs, or reserves, you will need to present a letter from that donor. The lender may request additional documentation, as well. Be sure to find out what donors and uses are acceptable for your particular situation. Find a Lender You will need to find a lender to work with on your mortgage application. I have some excellent mortgage lenders who will help you with every step of the way. If you prefer to go it aloe, you may find someone at your local bank or credit union, through an online lending platform, through a referral from a friend, or through your real estate professional. Make sure that you feel comfortable working with and communicating with your chosen lender so that you will feel confident throughout the process. Consider a Variety of Loan Options Don’t feel locked into a conventional, 30-year loan with a 20 percent down payment. While that scenario works for some buyers, it doesn’t work for everyone. Work with your lender to determine what types of financing options you qualify for and what types of financing will help you fulfill your goals. For example, if you are open to a larger monthly payment, you may find that a 15-year loan makes more sense than a 30-year loan. Just remember, there is no one-size-fits-all solution.

Get Pre-Approved It will be important for you to work with your lender to obtain pre-approval before you begin looking for your home. This will allow you to better determine your budget and timeline. In addition, pre-approval helps you to make a stronger offer once you find the right home for you. Determine Your Budget Once you know how much you’ll potentially be approved for and what your interest rate will be, you can create a budget based on your down payment and your desired monthly payment amount. Remember, just because you qualify for a large amount doesn’t mean that you will want to spend that much. Let your comfort level determine your budget. ** ASK ME FOR MY EXCLUSIVE BUYER ESTIMATE SHEET TO GET AN IDEA OF WHAT YOUR COSTS WILL BE** Don’t Forget the Extras Remember, you don’t just pay the monthly mortgage and required down payment. There is an earnest money deposit (EMD) that you will need to have available as well as reserve funds that you will need to show. You’ll have closing costs, insurance costs, and other expenses associated with moving and setting yourself up in your new home. Try to keep an eye on the big picture when making your decisions during this time. Avoid Major Purchases and Changes to Your Credit You may want a brand new car to park in your new driveway or a houseful of new furniture and decorative items. While it would be fun to have those things in place on moving day, you’ll probably need to hold off until after the closing. That’s because changes to your credit report or to the amount of debt you carry can have major negative consequences on your mortgage underwriting and approval process.

Expect the Unexpected A lot of things can happen on the journey to homeownership. You may find that your budget is different than you thought or that you have to make some compromises along the way. You may also find that some parts of the process you dreaded turn out to be easier than those things you thought were no-brainers. Stay open and let's chat. I'll help you make the Smart Decision.

10 Tips for Navigating the New Home Construction Process

Before you jump into buying a newly constructed home, it’s important to understand the process and determine how to navigate it successfully. Here you will find the ten best tips for making sure that your new home purchase provides everything you’re hoping for while staying on time and on budget. 1. Determine your priorities at the start It’s important for you to decide why you’re looking for new construction. Are you simply trying to overcome low inventory in your chosen market? Are you more interested in the personalization opportunities available with new construction? Is your budget the most important consideration or are you flexible enough to incorporate additional features that you find appealing? Know what matters most to you and think twice before you depart from your plan.  Not sure on the best route to take -- let's chat -- I'll give you the pros & cons of all home types

2. Optimize the location and lot When you’re able to choose your location and the style of your new construction home, it pays to think through the placement and orientation of your home on the lot. How will the front elevation relate to the street and to the neighbors? What is the view from the owner’s suite? The kitchen window? Where will the outdoor spaces be and how will they relate to the property’s best features? Think through curb appeal and livability when determining how your home will be situated. 3. Do your homework All builders are not created equal, so it pays to check out the builder you’re thinking of using.  Talk to previous clients and look at online reviews. Try to determine what parts of the process have been most difficult for others, and think ahead to how you can avoid problems before they occur.

4. Explore builder-provided discounts and incentives In some cases, your builder may provide special offers if you use their in-house lender or if you close by a certain time. They may have spec homes that have fallen through during the contract period and which they would be willing to let go in exchange for a quick sale. Determine whether these specials are cost-effective in your case and whether they make sense for your wish list. Don’t jump in just because there’s a discount available—check out other options first, and crunch the numbers for each option before you decide. 5. Be careful when it comes to extras and upgrades The biggest budget-buster for most new construction projects is the list of optional features and upgrades along with adjustments and changes during the building process. While you will no doubt want to take advantage of the opportunity to add some upgrades during the process, be smart about which ones you choose. Here are a list of times when it makes sense to choose the builder upgrade option: -     When the upgrade involves a structural change that would be easier and cheaper to implement during the building process rather than after. -     When the upgrade is something that you’ll particularly care about and enjoy using every day, like those in a kitchen or owner’s suite. -     When the upgrade will have a significant long-term impact on the home’s resale value or energy efficiency. -     When the cost through the builder is close to that charged by a contractor. Once you’ve made a decision, try to stick to it if at all possible. Change orders can significantly raise the cost of construction and contribute to delays.

6. Don’t be afraid to negotiate Many people falsely believe that there is no room for negotiation when working with a builder, but in fact, there are many areas open for negotiation other than overall price. You may be able to negotiate a reduced interest rate or reduced closing costs through an affiliated lender or title company, as well as a selection of upgrades and optional features. I will help you choose the best options for your budget and timeline. 7. Ensure everything is in writing When you’re talking through your options with your builder or their representative, you may talk about options and prices in an informal way. Just remember that an assurance means nothing if it’s not in writing. Keep track of everything you discuss, and have an agent ensure that they are all properly noted in your contract.  And, sometimes there are clauses that allow deviation from the agreement. I will review the entire contract with you to be sure you know & understand all the details

8. Don’t forgo the home inspection Just because it’s new construction doesn’t mean that you don’t need an inspection. Accidents happen and errors occur.  And, do you when/if to have an inspection?  I have a great home inspector & will guide you through this process.   9. Keep track of guarantees and warranties There will be guarantees and warranties for the building itself as well as its systems, appliances, and other features. You’ll need to keep track of all of these, along with their specific terms and requirements, in order to make sure that you don’t accidentally void them or wait too long to take advantage of the repairs and benefits they provide.

10. Expect the unexpected New construction has many great benefits but it can also have its share of problems. Be prepared for delays, mistakes, and other issues to crop up, and have a plan in place to address them. If everything is smooth sailing, great! If not, you’ll feel better knowing that you and a real estate agent have already thought through a number of eventualities, helping to ensure that you’re ready for anything. WHY GO IT ALONE?  I have helped many happy folks with their new construction.  I've seen it all.  Let me help you make all the smart decisions.  PS -- My service, advice & knowledge is 100% FREE! Let's chat today.

 

2021 Housing Market Forecast and Predictions

2021 National Housing Market Forecast and Predictions: Back to Normal

To say 2020 was a year of surprises is an extreme understatement. What started off as a bright year for the housing market and the economy was soon derailed by a global pandemic and severe economic recession. As detailed by my colleague, George Ratiu, the economic rebound has been sharp, but is by no means complete and created distinct winners and losers among sectors in the economy. Read more detailed thoughts on the overall economic context and outlook, here.

One of the big winners has been the housing market, which saw home sales and prices hit decade-plus highs following decade lows in the span of just a few months. We expect housing’s winning streak to continue in 2021 as seasonal trends normalize and some of the frenzied momentum fades thanks to fresh affordability challenges. Below you’ll find our forecast and housing market predictions on key trends that will shape the year ahead.

Here is the link to the rest of the very detailed & interesting article on Realtor.com

To answer everyone's question, "When is the best time to buy or sell a home"?  My answer is always, "When you are ready".  I've been a professional Realtor for years and have seen all the ups and downs.  I know how to navigate any market and will help you make the smart decision.

ARE YOU READY?  Let's chat!

How Much Leverage do Today's Sellers Really Have?

How Much Leverage Do Today’s House Sellers Have? And, I have unique solutions for both buyers and sellers!  Check it out.

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

What does this mean for you -- home seller -- today?

It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party's leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

-  To buy a home
-  To buy now before prices continue to appreciate
-  To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Here’s an example:
Odeta Kushi, Deputy Chief Economist at First American, recently identified a situation in which many sellers are finding themselves today:

“As mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home…Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.”

She then offers a possible solution:

“While the fear of not being able to find something to buy will not disappear in a limited supply environment, new housing supply can incentivize existing homeowners to move.”

There’s no doubt many sellers would love to build a new home to perfectly fit their changing wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?

Going back to the concept of leverage:

As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party’s needs. But how?

The seller may decide to sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller’s new home is being built. A true win-win negotiation.

Not every buyer will agree to such a deal – but you only need one.

That’s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today’s market.

Another solution:

My exclusive BUY BEFORE YOU SELL program.  This will enable you to sell your home BEFORE you buy your next home.  No hassles with showings on your current home, no contingencies when putting in an offer on a new home and you are like a cash buyer -- which will put you at the front of the buyer line.  Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. All taken care of with my program.  

What this Means for You:

If you’re considering selling your house now but worry a huge obstacle stands in your way, let's connect. You have options and I will help you make the smart decision.  

5 Inspiring Home Design & Remodeling Trends for 2021

 

5 Inspiring Home Design and Remodeling Trends for 2021

We’ve all spent a lot more time at home over the past year. And for many of us, our homes have become our office, our classroom, our gym—and most importantly, our safe haven during times of uncertainty. So it’s no surprise to see that design trends for 2021 revolve around soothing color palettes, cozy character, and quiet retreats. 

Even if you don’t have immediate plans to buy or sell your home, we advise our clients to be mindful of modern design preferences when planning a remodel or even redecorating. Over-personalized or unpopular renovations could lower your property’s value. And selecting out-of-style fixtures and finishes could cause your home to feel dated quickly. 

To help inspire your design projects this year, we’ve rounded up five of the hottest trends.  Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate your property, give me a call. I can help you realize your vision and maximize the impact of your investment. 

1. Uplifting Colors

Colors are gravitating toward warm and happy shades that convey a sense of coziness, comfort, and wellbeing. This year’s palettes draw from earthy hues, warm neutrals, and soothing blues and greens. <1> 

While white and gray are still safe options, expect to see alternative neutrals become increasingly popular choices for walls, cabinets, and furnishings in 2021. For a fresh and sophisticated look, try one of these 2021 paint colors of the year: 

●       Aegean Teal (coastal blue) by Benjamin Moore

●       Urbane Bronze (brownish-gray) by Sherwin-Williams

●       Soft Candlelight (muted yellow) by Valspar 

On the opposite end of the spectrum, indigo, ruby, sapphire and plum are showing up on everything from fireplace mantels and floating shelves to fabrics and home accessories. These classic, rich hues can help bring warmth, depth, and a touch of luxury to your living space. 

To incorporate these colors, designers recommend using the “60-30-10 Rule.” Basically, choose a dominant color to cover 60% of your room. For example, your walls, rugs, and sofa might all be varying shades of beige or gray. Then layer in a secondary color for 30% of the room. This might include draperies and accent furniture. Finally, select an accent color for 10% of your room, which can be showcased through artwork and accessories. <2>

 

2. Curated Collections

After a decade of minimalism, there’s been a shift towards highly-decorative and personalized interiors that incorporate more color, texture, and character. Clearly-defined styles (e.g., mid-century modern, industrial, modern farmhouse) are being replaced by a curated look, with furnishings, fixtures, and accessories that appear to have been collected over time. <3> 

This trend has extended to the kitchen, where atmosphere has become as important as functionality. The ubiquitous all-white kitchen is fading in popularity as homeowners opt for unique touches that help individualize their space. If you’re planning a kitchen remodel, consider mixing in other neutrals—like gray, black, and light wood—for a more custom, pieced-together look. And instead of a subway tile backsplash, check out zellige tile (i.e., handmade, square Moroccan tiles) for a modern alternative with old-world flair.<4>

 

3. Reimagined Living Spaces

The pandemic forced many of us to rethink our home design. From multipurpose rooms to converted closets to backyard cottages, we’ve had to find creative ways to manage virtual meetings and school. And designers expect these changes to impact the way we live and work for years to come. 

For example, some home builders are predicting the end of open-concept floor plans as we know them. <5> Instead, buyers are searching for cozier spaces with more separation and privacy. Cue the addition of alcoves, pocket doors, and sliding partitions that enable homeowners to section off rooms as needed. <4>

The necessity of a home office space is also here to stay. But what if you don’t have a dedicated room? Alternative workspaces have become increasingly popular. In fact, one of the biggest trends on Pinterest this year is the “cloffice”—essentially a spare closet turned home office. Searches for “home library design” and “bookshelf room divider” are on the rise, as well.<6>

 

 

 

4. Staycation-Worthy Retreats 

With travel options limited right now, more homeowners are turning their vacation budgets into staycation budgets. Essentially, recreate the resort experience at home—and enjoy it 365 days a year! 

Bedrooms should provide a soothing sanctuary for rest and relaxation. But this year, minimalist decor and muted colors are giving way to bolder statement pieces. To create a “boutique hotel” look in your own bedroom, start with a large, upholstered headboard in a rich color or pattern. Layer on organic linen bedding and a chunky wool throw, then complete the look with a pair of matching bedside wall lights. <7> 

Carry those vacation-vibes into your bathroom with some of the top luxury upgrades for 2021. Curbless showers and freestanding tubs continue to be popular choices that offer a modern and spacious feel, and large-format shower tiles with minimal grout lines make clean up a breeze. Add a floating vanity and aromatherapy shower head for the ultimate spa-like experience. <4>

 

 

5. Outdoor Upgrades 

From exercise to gardening to safer options for entertaining, the pandemic has led homeowners to utilize their outdoor spaces more than ever. In fact, backyard swimming pool sales skyrocketed in 2020, with many installers reporting unprecedented demand. <8>  But a new pool isn’t the only way homeowners can elevate their outdoor areas this year. 

The home design website Houzz recently named 2021 “the year of the pergola.” They’re a relatively quick and affordable option to add shade and ambiance to your backyard.4 Another hot trend? Decked-out, custom playgrounds for exercising (and occupying) the youngest family members who may be missing out on school and extracurricular activities. <9> 

But don’t limit your budget to the backyard. Landscapers are reporting an increase in front yard enhancements, including porch additions and expanded seating options. These “social front yards” enable neighbors to stay connected while observing social-distancing guidelines. <10>

 

 

DESIGNED TO SELL 

Are you contemplating a remodel? Want to find out how upgrades could impact the value of your home? Buyer preferences vary greatly by neighborhood and price range. We can share our insights and offer tips on how to maximize the return on your investment. And if you’re in the market to sell, we can run a Comparative Market Analysis on your home to find out how it compares to others in the area. Contact us to schedule a free consultation!

 

Sources:

1.      Good Housekeeping  -
https://www.goodhousekeeping.com/home/decorating-ideas/g34762178/home-decor-trends-2021/

2.      The Spruce –

https://www.thespruce.com/timeless-color-rule-797859

3.      Homes & Gardens –

https://www.homesandgardens.com/news/interior-design-trends-2021

4.      Houzz –

https://www.houzz.com/magazine/36-home-design-trends-ready-for-takeoff-in-2021-stsetivw-vs~142229851

5.      Zillow -
https://www.prnewswire.com/news-releases/the-end-of-open-floor-plans-how-homes-will-look-different-after-coronavirus-301080662.html

6.      Pinterest -
https://business.pinterest.com/content/pinterest-predicts/more-door/

7.      Homes & Gardens –
https://www.homesandgardens.com/spaces/decorating/bedroom-trends-224944

8.      Reuters -
https://www.reuters.com/article/us-health-coronavirus-pools/pool-sales-skyrocket-as-consumers-splash-out-on-coronavirus-cocoons-idUSKCN2520HW

9.      Realtor.com -
https://www.realtor.com/advice/home-improvement/2021-design-trends/

10.   Realtor Magazine -
https://magazine.realtor/daily-news/2020/12/09/4-outdoor-home-trends-that-may-gain-steam-in-2021

Everyone Needs a Place to Call Home

All creatures need a nice warm home. Here's a sumptuous groundhog home layout. I make real estate easy -- how may I help you?

 

Buying? Selling? Staying Put? Here are 10 Resolutions + FREE Reports

 

New Year, New Home? Set Homeownership Goals Whether You’re Buying, Selling, or Staying Put.  Read on for free reports!

The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021. 

Home buyers, is this the year you work to improve your credit score, pay down some debt, or save for a down payment? 

Home sellers, we’ve laid out plans for you to get top dollar for your property, including timing your home sale, making your property stand out from the crowd, and investing in your extra living space. 

And even if you’re staying put for awhile, homeowners, you can resolve to improve your status quo by evaluating your home budget, finalizing your home maintenance schedule, or maybe investing in a second property. 

So no matter your homeownership status, we’ve got some ideas and advice for you to make this year your best one yet. Read on to learn more. 

HOME BUYERS 

⇒  Resolution #1:  Qualify for a better mortgage with a higher credit score.

Your credit report highlights your current debt, bill-paying history, and other key financial information. Importantly for your home-buying journey, it is also used by lenders and companies to calculate your credit score, which partly determines if you are qualified to obtain a mortgage. Therefore, before you start house-hunting, make sure your finances are in the best possible shape by checking your credit report from Equifax, Experian, and TransUnion (via AnnualCreditReport.com). You can also obtain your credit score for free from some banks and credit card companies. 

Your credit score will be a number ranging from 300-850. <1>  Generally speaking, a credit score of 740 or higher is considered very good to excellent. <2> If your FICO score drops below 740, you might need to work at boosting your score for a few months before you begin house-hunting. Ways to do this are to pay your bills on time every month, keep your credit card balances low, and avoid applying for new credit. 

⇒  Resolution #2: Improve your credit health by paying down debt.

 Do you have student loans, credit card debt, or car payments tying up your income each month? That debt is hurting your “buying power,” or the amount of home you can afford. Not only is it money that you can't spend on your new home, but your debt-to-income ratio also affects your credit score, which we discussed above. The less debt you have, the higher your FICO score and the better mortgage you can obtain.  

If you can, pay off some debt in its entirety—like a low balance on a credit card. Then apply that "extra" money you previously paid on that credit card to pay off bigger debt, like a car loan. Even if you can’t pay off all (or any) of your debt in full, reducing the balances of each account will help you qualify for the best possible mortgage terms. 

⇒  Resolution #3:  Create a financial safety net before applying for a mortgage.

Don’t forget that buying a home requires some cash as well. A down payment is typically 7% of a home’s purchase price, and closing costs currently average $3,700. <3,4> You’ll also need money for moving expenses and any initial maintenance tasks that might pop up. And as the pandemic taught us, you never know when an unforeseen event might cause a job loss, drop in income, or health scare, so having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs. 

Dedicate some effort to building up your reserves. Cut down on unnecessary expenses, and consider having a portion of each paycheck automatically deposited into your savings account to avoid the temptation to spend it. 

HOME SELLERS

⇒ Resolution #4:  Decide on the right time to sell your home.

If you’re looking to maximize profit on the sale of your home, selling earlier in the year makes sense. Listing prices historically increase early in the year, peak in May, plateau through June, and decrease for the remainder of the year.5 And, according to the National Association of Realtors, “[w]ith both mortgage rates and the number of homes available for sale expected to remain relatively low, home prices are likely to continue to increase. [In] mid-January, home prices typically begin a quick ramp-up in a normal year.” <5>

But sales price isn’t the only thing to consider. You might not be ready to sell your home yet because you don't want to uproot your kids during the school year or because you need to tackle some minor upgrades before placing your home on the market.

This means that there is no one month or season that is the perfect time to sell your home. Instead, the right timeline for you takes into account factors such as when you’ll earn the highest profit, personal convenience, and whether your home is even ready to put on the market. A trusted real estate professional can talk you through your specific needs to clarify when to sell your home. 

⇒ Resolution #5:  Boost your home’s resale value by making your property shine.

Housing inventory is at historic lows across the country, and that means the market is fiercely competitive.<6> Selling your home in 2021 has the potential to net you a huge return right now, and you can maximize that amount with some simple fixes to make sure your property outshines your neighbors' for sale down the street. 

In your home, you might need to tackle a minor remodeling project, such as upgrading the flooring or adding a fresh coat of paint. According to the National Association of Realtors’ 2019 Remodeling Impact Report, simply refinishing existing hardwood floors recoups 100% of the cost at resale, and completely replacing it with new wood flooring recovers 106% of costs.<7>

Outside, you might consider improving your curb appeal by removing a dead bush, trimming a tree that blocks the front window, or power-washing your moldy driveway and sidewalks. In fact, real estate agents say cleaning the exterior of your house can add $10,000 to $15,000 to a home’s sale price.<8> And according to a Virginia Tech study, improving a home’s landscaping may increase its value by 10 to 12%.<9>

I will provide you with all the services you need to seel quickly at best price.  Don't want to be bothered with all of this?  Ask me about my BUY BEFORE YOU SELL program.  You can buy your new home & move in while we take care of all repairs, inspections, staging & showings.  The easiest and most relaxing way to sell your home.  

⇒  Resolution #6:  Invest in your “extra” living space to meet current buyers’ needs.

Due to COVID-19, more people are staying at home to work, go to school, exercise, and stay entertained. And these lifestyle changes are showing up in home buyer preferences. For example, according to one study, buyers are looking more and more for homes with formal, outfitted home offices, private outdoor spaces, and updated kitchen appliances.<1>0

So if you’ve got an underutilized room, consider turning it into an office, home gym, schoolroom, or multi-purpose room to meet current home buyer needs and attract better offers on your home. Got some underwhelming space outside? You could turn it into an outdoor entertainment area by adding a firepit, upgrading the patio furniture, or installing a grilling area. Be sure to consult with a local real estate professional before investing in a renovation, however, as each market’s buyers have different tastes.

HOMEOWNERS

⇒  Resolution #7:  Evaluate your household budget to reflect financial changes.

After this past year, in particular, your financial picture may have changed. Maybe you were furloughed, had your hours reduced, or got a new job further from home. Perhaps you’ve kept the same job, but you’re now working remotely. A work-from-home arrangement could mean less money spent on gas, tolls, a professional wardrobe, and dining out for lunch.

But this could also mean new (or increased) expenses now that you’re working at home, such as new tech-related purchases, faster Wi-Fi, and higher energy bills. January marks the perfect opportunity to update your income and expenses and review last year’s spending habits, tweaking as needed for 2021.

For more specific ideas, contact us for our free report "20 Ways to Save Money and Stretch Your Household Budget."

⇒  Resolution #8:  Save money now (and earn more later) with a home maintenance plan.

Having a schedule of regular home maintenance projects to tackle will save you money now and in the long-term. You’ll avoid some surprise “emergency fixes,” and when you’re ready to eventually sell your home, you’ll get higher offers from buyers who aren’t put off by overdue repairs.

Even if nothing necessarily needs fixing right now, you can lower your energy costs by maintaining and upgrading your home.  According to the U.S. Department of Energy, simple fixes add up: replace five most frequently used bulbs with ENERGY STAR ones to save $75/year; repair leaky faucets to save $35/year; replace older toilets with low-flow models to save $100/year; and seal air leaks to save $83-$166/year.<11>

 For a breakdown of home maintenance projects to tackle throughout the year, contact us for our free report “House Care Calendar: A Seasonal Guide to Maintaining Your Home.”

⇒  Resolution #9:  Invest in real estate for a better standard of living.

Even if you don’t plan on leaving your current residence, real estate is a great way to improve your quality of life in 2021. 

Have cabin fever from the long quarantine? A vacation home in a getaway location you love lets you safely spread your wings. And if you have been looking for a second stream of income, an investment property might be your answer. Just be sure to consult with a real estate professional to get a realistic sense of a property’s true income potential.  

Want more information on how a second property fits into your 2021 plans? Request our free report, "Move Up vs Second Home: Which One Is Right For You?"  With 1400 experienced agents worldwide, we can help you!

LET US HELP YOU WITH YOUR 2021 GOALS

Without a plan and a support system, 55% of Americans will break their new year’s resolutions.<12> Whether you’re looking to buy, sell, or stay put in your home, it helps to connect with a trusted real estate agent to keep you motivated and on track.

As local market experts, we have the knowledge, experience, and networks to help you achieve your homeownership goals, whatever they may be. Reach out to us today for a free consultation and commit to a happy and prosperous new year.

 

 Sources:

1.      USA.gov -
https://www.usa.gov/credit-report

2.      Equifax -
https://www.equifax.com/personal/education/credit/score/what-is-a-good-credit-score/

3.      NerdWallet -
https://www.nerdwallet.com/article/mortgages/the-20-mortgage-down-payment-is-dead

4.      Zillow -
https://www.zillow.com/mortgage-learning/closing-costs/

5.      Realtor.com -
https://www.realtor.com/research/we-should-be-in-a-buyers-market-right-now-but-covid-turned-everything-upside-down-best-time-to-buy-a-home

6.      Business Insider -
https://www.businessinsider.com/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9

7.      National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2019-remodeling-impact-10-03-2019.pdf

8.      House Logic -
https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/

9.      Virginia Cooperative Extension -
https://www.pubs.ext.vt.edu/content/dam/pubs_ext_vt_edu/426/426-087/426-087.pdf

10.   HomeLight -
https://www.homelight.com/blog/top-agent-insights-for-q2-2020/

11.   U.S. Department of Energy -
https://www.energy.gov/energysaver/articles/how-much-can-you-really-save-energy-efficient-improvements

12.   Ipsos -
https://www.ipsos.com/en-us/urban-plates-ipsos-NY-Resolutions

 

Lovely Home Ready for You

Check out this lovely home in the sweet town of Hillsborough. Thinking of selling -- contact me to learn all about my FREE seller services and BUY BEFORE YOU SELL program.

Recycling Christmas Trees and GOATS!!

 

I'm not rushing you, but when you’re ready to say goodbye to the 2020 Christmas season, here’s some information about what to do with your Christmas tree.

Well... Dried out Christmas trees become increasingly flammable as days go by, so maybe I am rushing you just a little bit.

Most towns and cities recycle Christmas trees for mulch, so recycling your tree is a way of “paying it forward.”

Here are some great links & info for information on how to recycle Christmas trees in various towns and cities around the Triangle. There are options for curbside pickup and drop-off at recycling centers. There's even a farm that would love Christmas tree donations for their goats to eat!

Cary
Remove artificial decorations, including wire, tinsel, lights, etc. Place the item at your curb y 7 a.m. on your scheduled yard waste collection day. MORE INFO

Raleigh
The City of Raleigh has offered some recycling tips for the holiday season.  MORE INFO

Apex
The Town of Apex is collecting real Christmas trees as part of regular yard waste collection services. Remove all decorations from trees, including any nails from the stand, and place at the curb for pickup on your scheduled day. MORE INFO

Wake County
You can drop off your tree at several Wake County convenience centers and parks.

All facilities are closed January 1st, but starting January 2nd, here’s the schedule:

Wake County Convenience Centers
Hours: 7 days a week, 7 a.m. until 7 p.m.

Site 1: 10505 Old Stage Road, Garner
Site 2: 6120 Old Smithfield Road, Apex
Site 4: 3600 Yates Mill Pond Road, Raleigh
Site 11: 5051 Wendell Blvd., Wendell

MORE INFO

WHAT ABOUT GOATS??

Awww....  Goats love eating Christmas trees! Some farms happily collect old Christmas trees for their very appreciative goats.

Hux Family Farm, at 1923 Shaw Road, Durham, has put out a call for Christmas trees! They’re looking for pine trees with as few chemicals as possible on them. Text 9196667258 or email huxfamilyfarm@gmail.com about drop-off. They promise lots of pictures and videos of their goats chomping on the trees!

A second area farm that has expressed an interest in Christmas trees for their goats is The Dean Farm, 2690 Wendell Blvd, Wendell. They say to just pull into the driveway and throw them out! But you might want to contact them to make sure that they’re still looking for trees. 919-624-0685 or thedeansfarm@gmail.com.

Hill Ridge Farms, 703 Tarboro Road, Youngsville, has also said they’d love some Christmas trees for their goats. Check their Facebook page before you go to see if they have any updates. 

Consult your municipality’s solid waste services website for information.

A Note of Caution
When you put curbside might give potential burglars an idea of what new items are in your house, like televisions and game consoles. So, you might want to consider dropping those boxes off at drop-off centers instead.

Need a new home for your Christmas tree in 2021?  Contact me & let's get started!

It's Property Tax Time! Here's All the Info You Need

 

Like all inevitable things in life, taxes are unavoidable.  So let’s get this convo going as the deadline for paying property taxes is coming up on January 5!

**NOTE:  for the purpose of this conversation, I will be talking about HOME property taxes only.

What is NC property tax as it pertains to homes? 

Property tax rates are applied using a calendar approach. This means that your current tax bill utilizes the time you owned the home from Jan-Dec of the current year. So, they are paid in arrears.  

**I will be happy to explain how this works if you buy or sell property during the year.  CONTACT ME NOW

Residents of Wake County have an average effective property tax rate of 0.88% and the median annual property tax payment is $2,327.  This means if you have a home that is tax valued (not the same as a real estate appraisal) at $400K, you will pay 0.88% tax on it or $3520. 

Here are some tax values for counties near Wake:

Source:  NC County Tax Rates

Tax bills are typically mailed in July and are due September 1st.  There is an extended deadline of January 5 of the next year, so you can pay at either time.  Keep in mind that this may affect your taxes for the year.  If you pay in the next year, you cannot claim them for the current year.  Check with your tax advisor.  

**Tax bills are not mailed to mortgage companies. The majority of lenders electronically access and retrieve tax data directly from our system, eliminating the need for a paper copy of the bill.  If you pay through your mortgage company, the final responsibility is still yours.  Check with them to make sure they are being paid and that you are not double paying. 

North Carolina’s property tax is “ad valorem,” (translation, “to value) which means that it is based on the value of property. A county assessor determines the value of a property and is required to revalue a property at least once every eight years. In Wake County, it is every four years.  The goal of the reappraisal is to determine the current market value of the property.  The last county home tax assessment was done in January, 2020.  The next one will be in January, 2024.

NOTE:  A tax appraisal from a county assessor is not the same as a real estate appraisal.    

** CONTACT ME FOR YOUR HOME'S VALUE and learn your accurate, personal, home value.   It's FREE!

Definition of Terms:

A Tax appraisal provides an estimate based on general algorithms from several public sources. 

A Real Estate Appraisal is typically conducted by a licensed, accredited NC Appraiser.  It is an  appraisal is an unbiased professional opinion of the value of a home and is used whenever a mortgage is involved in the buying, refinancing, or selling of that property.  It determines the value the bank is willing to mortgage.

A Home Value Report is provided by an experienced, knowledgeable Realtor and will give you an accurate price point of your specific home based on extensive research, personal evaluation & recent, nearby comparable homes.  This is the most accurate current value of your home.

Did you find this article helpful?  Questions?  Let me know!