Do you want to sell your house, but hesitate because you’re worried you won’t be able to find your next home in today’s market? You’re not alone, but there’s some good news that may ease your worries. New home construction is up and is becoming an increasingly significant part of the housing inventory.
That means when you go to put your house on the market this summer, considering newly built homes is crucial for expanding the options you’ll have for your next move.
Near-Record Percentage of New Home Inventory
Newly built homes today make up a near-record percentage of the total number of homes available for sale (see graph below):
In fact, as the data shows, newly built homes now make up 31% of the total for-sale inventory. Over the past couple of decades, newly built homes made up an average of only around 13% of total housing inventory from 1983 to 2019.
That means the percentage of the total available homes that are newly built is over two times higher than the norm.
Why This Matters to You
Overall, the supply of homes for sale is still low. And when there’s limited supply, it’s crucial to explore all of your available choices. New-home construction has emerged as a game changer with increasing inventory. Not to mention, recent data shows it’s gaining even more momentum as more newly built homes are underway and will be coming to the market in the months ahead.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), highlights the importance of newly built homes for those looking to buy in today’s housing market. Dietz states:
“With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.”
Don’t overlook this growing market segment and risk missing out on great opportunities to find your ideal home. Since new home construction accounts for roughly 31% of total for sale inventory, you could be cutting nearly one in three options from your search if you don’t consider newly built homes.
If you’re looking to make a move, a local real estate agent can help you sell your current house and explore newly built options in your area. They have the expertise you need to handle both sides of the process so you can move out of your current house and into your brand-new dream home.
Bottom Line
Now’s the time to sell your house and take advantage of the momentum that’s building in new home construction. Reach out to a trusted real estate agent who can guide you throughout the selling and buying process so you can make your transition to a newly built home a reality.
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THIS IS NOT ORIGINAL MATERIAL SEE NOTE/LINK BELOW.
When I find an article I believe will be helpful to my friends and clients, I post it here on my blog. If you would like to read this article from the original source, you may find it here.
If you’re thinking about buying a home, you should know your credit score’s a critical piece of the puzzle when it comes to qualifying for a home loan. Lenders review your credit to assess your ability to make payments on time, to pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from Bankrateexplains:
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability, especially today. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 765. But, that doesn’t mean your credit score has to be perfect. An article from Business Insider explains generally how your FICO score range can make an impact:
“. . . you don’t need a perfect credit score to buy a house. . . . Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799).”
Working with a trusted lender’s the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO says:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy, don’t apply for other credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
When you’re ready to start the homebuying process, a lender will be able to assess which range your score falls in and tell you more about the specifics for each loan type.
Bottom Line
With affordability challenges today, prioritizing ways you can have a positive impact on your credit score could help you get a better mortgage rate. If you want to learn more, connect with a trusted lender.
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THIS IS NOT ORIGINAL MATERIAL SEE NOTE/LINK BELOW.
When I find an article I believe will be helpful to my friends and clients, I post it here on my blog. If you would like to read this article from the original source, you may find it here.
Whether you’re replacing an existing roof or researching options for a new home, deciding between roofing styles, materials and costs can be complicated. To help you determine the correct roofing materials for your home, here are the pros and cons of the six most popular roofing types.
#1 Asphalt Shingle The most common roofing material, asphalt shingles, are affordable and simple to install. Asphalt shingles are produced when a fiberglass shingle is mixed with asphalt and finished with a textured surface. Asphalt shingles come in two basic configurations: single-thickness and laminate. Pros: Asphalt shingles are available in an assortment of colors and are the most economical material available. Cons: Asphalt shingles have a shorter life span and don’t offer the same level of insulation as other roofing alternatives.
#2 Wood Shake For centuries wood was a common material used in residential roofing. But, due to its flammability, modern day use is less common. Pros: Wood offers a natural, rustic look. Cons: Wood shingles are flammable and can potentially suffer from mold or rot. The life span of wood roofing is also limited (similar to asphalt shingles).
#3 Metal (various types) Aluminum, steel, copper, copper-asphalt and lead are the most popular metal roofing alternatives. Metal roofs are extremely durable but costly to install in both material and installation time. Pros: Metal is strong and offers high solar reflectance, allowing for efficient cooling and heating of homes. Cons: Metal is typically the most expensive roofing alternative.
#4 Ceramic and Cement Tile Rounded tile roofing products are common with Spanish Colonial and Mission-style homes. Homeowners considering tile for their roof should be aware of the cost — anywhere between $400 and $800 on average per tile. Pros: Tiles are durable and energy efficient. Cons: The weight of tile roofing is heavy and may require additional framing for support.
#5 Slate Roofing Slate is extremely durable and known for its many variations in origin, thickness and color. Pros: Slate is dependable and considered to be a sustainable, recyclable roofing material. Cons: Slate is expensive and requires additional roofing support to supplement its weight.
#6 Synthetic Roofing Synthetic roofing products (rubber, plastic and polymer roofing) have been developed to provide the color, look and texture of other roofing materials (without the high cost). Pros: Synthetic roofing is durable and affordable. Cons: Due to their recent development, some synthetic materials have been known to absorb moisture.
Conclusion When considering a roofing material for your home, consult with a local roofing specialist to ensure that you choose the appropriate material for your home’s aesthetic (and budget).
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THIS IS NOT ORIGINAL MATERIAL SEE NOTE/LINK BELOW.
When I find an article I believe will be helpful to my friends and clients, I post it here on my blog. If you would like to read this article from the Judge Fite Company blog, you may find it here.
It’s vital to understand the terms “earnest money” and “contingencies” when house hunting. Earnest money is paid up-front as a show of good faith when you make an offer on a home. It is held by an escrow company until the sale is finalized or falls through. A contingency is a condition added to a purchase offer. If that condition isn’t met, the buyer keeps their earnest money if they walk away.
Here are the five most common contingencies used by homebuyers.
Appraisal
This contingency means the offer depends on a satisfactory appraisal of the property. If the appraiser decides the value of the home is much lower than the sale price, the buyer can re-negotiate or walk away.
Financing
This contingency gives the buyer time to secure a home loan. It protects them in the event they cannot find a lender or do not qualify for the amount they need.
Home Sale
If a buyer needs to sell their current home, this contingency gives them time to do so. If they cannot sell their home, they get their earnest money back. This contingency is no longer very common, as sellers generally decline offers with it.
Inspection
If the home inspection reveals any problems, this contingency gives the buyer a chance to negotiate repairs with the seller. If an agreement cannot be reached, the buyer can walk away.
Title
This contingency protects the buyer if any problems arise during the title search. Common problems include contested ownership or another person’s debts needing to be paid.
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THIS IS NOT ORIGINAL MATERIAL SEE NOTE/LINK BELOW.
When I find an article I believe will be helpful to my friends and clients, I post it here on my blog. If you would like to read this article from the Judge Fite Company blog, you may find it here.
If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.
Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):
While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.
As a recent survey from Realtor.comexplains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.
While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.
If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties.”
Bottom Line
If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Partner with a real estate professional to get your house on the market.
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When I find an article I believe will be helpful to my friends and clients, I post it here on my blog. If you would like to read this article from the original source, you may find it here.
Buying a home is one of the most significant financial decisions many people will make in their lifetime, and for most people, a home mortgage is necessary to finance the purchase of a home. Mortgage payments, however, can be a significant financial burden, especially when you consider the interest you’ll be paying over the life of the loan. One way to reduce the interest you’ll pay is by buying discount points.
So, what are discount points, and how can they help you save money on your home mortgage?
Discount points are fees paid to your lender at closing that reduce the interest rate on your mortgage loan. Each point typically costs 1% of the total loan amount, and usually lowers the interest rate on your mortgage by 0.25%. For example, if you have a $200,000 mortgage loan, one discount point would cost you $2,000, and it could lower your interest rate by 0.25%.
Buying discount points can be an excellent option for those who plan to stay in their home for an extended period. The amount of interest you save each month can add up over time and save you a significant amount of money over the life of the loan.
However, before you decide to buy discount points, you should consider the following factors:
Your financial situation: Do you have the cash available to pay for discount points at closing? If not, it may not be worth it to buy discount points. (Pro Tip: A good Realtor can help you find a property/seller who might be willing to offer money at closing to help cover your closing cost…money which could be used to purchase discount points.)
How long you plan to stay in your home: If you plan to sell your home within a few years, buying discount points may not be worth it because you won’t have enough time to recoup the cost of the points.
The interest rate: Is the interest rate on your mortgage already low? If so, buying discount points may not save you as much money. (In our May 2023 market, buying discount points makes financial sense.)
Buying discount points can be an excellent way to save money on your home mortgage, but it’s not the only tool available, and that is why I partner with a reputable lender like Cardinal Financial. Cardinal offers an array of products and has the knowledge to put YOU in the best possible position to buy a home. The loan officers I work with truly put the needs of my clients above profits, finding the best products for them, and that’s why I have chosen to partner with Cardinal Financial.
If you are thinking about buying a home or dream of purchasing your first home, message me today and let’s schedule a time to talk discount points and more. I would LOVE to help you move into your dream home…maybe sooner than you thought possible!
You’ll probably experience some trial and error as you learn to properly care for your new place. Here’s a basic home-maintenance checklist to help you get started.
Check gutters regularly to make sure they’re properly attached and clear of sticks and leaves. Also, confirm the flow of water from your gutters is away from your home to avoid damage to your foundation.
Test your smoke and carbon monoxide detectors monthly. Experts also recommend changing the batteries in these items as part of your routine when you change the clocks in the fall and spring.
Change HVAC filters in your home at intervals recommended by the system manufacturer, especially if you have allergies or pets. A dirty filter means an inefficient system.
Inspect trees on your property. A tree-service company can give you advice on how to care for your trees and identify weak limbs that should be cut.
Look for running toilets and dripping faucets. These small nuisances can add up to a large waste of water. You can often fix a toilet or faucet yourself.
Check the supply hose to your washing machine, which can leak and cause expensive damage.
Clean your dryer vent regularly. Note the dryer vent is not the lint trap (which should be cleaned often, too). Dryer vents push air outside the property through a duct, but can get filled with lint and become a fire hazard.
Clean around your refrigerator. Keeping the vents and coils underneath and behind your refrigerator free of dust helps its efficiency.
Mind the gaps. Do you have gaps or cracks around doors, windows, or where pipes and wires enter the structure? Replace weather stripping that’s missing or in disrepair and add caulk where needed. This will help you keep the house insulated and keep bugs and small creatures out.
Have a pest-control expert inspect your home, even if you don’t suspect signs of infestation.
As you can see, a lot of effort goes into maintaining your home, and these tips just scratch the surface. Ask your REALTOR® about other resources that can help you keep your home safe, efficient, and well-maintained.
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When I find an article I believe will be helpful to my friends and clients, I post it here on my blog. If you would like to read the article from the original source, you may find it here.
When you are planning to buy a home, it’s important to have a clear idea of the costs involved, both upfront and ongoing. Here are a few things you should keep in mind:
Down payment: You will need to save up for a down payment, which is a percentage of the home’s purchase price that you pay upfront. Downpayment amounts can vary depending on what type of financing you will be using. A common first-time home buyer loan is an FHA loan with a down payment of 3.5%. (Down payment assistance programs can help cover some of this cost.)
Closing costs: These are the fees and expenses that you need to pay at the time of closing when you finalize the purchase of the home. These costs can include things like appraisal fees, lawyer fees, title insurance, and taxes. On average, closing costs can range from 2% to 5% of the home’s purchase price and your agent can help you estimate this cost based on your home price and other factors.
Monthly mortgage payments: Once you have bought your home, you will have to make monthly mortgage payments, which will include both principal (the amount you borrowed) and interest (the cost of borrowing) as well as property taxes and homeowners insurance. You can use online mortgage calculators to estimate your monthly payments based on the purchase price, down payment, and interest rate. Again, your agent can help you estimate this cost.
Buying a home is a big financial commitment, and it’s important to plan carefully and budget accordingly. You should also consider talking to a financial advisor or a mortgage lender to get more information and guidance on the costs of homeownership.
As a first-time home buyer, it’s also important to understand that your credit score plays a critical role in determining your eligibility for a mortgage and the interest rate you may qualify for. Here are some steps you can take to prepare your credit for buying a home:
Check your credit report: Start by checking your credit report from the three major credit bureaus (Equifax, Experian, and TransUnion). Your real estate agent can show you where to get these reports and help you know what to look for/work on. Your agents should also be able to direct you to a reputable credit repair service as well if you need more serious work on your credit.
Pay down debt: High levels of debt can lower your credit score and make it harder to qualify for a mortgage. Try to pay down your credit card balances and other debts to improve your credit utilization ratio, which is the amount of credit you’re using compared to your total credit limit.
Avoid applying for new credit: Every time you apply for credit, it can have a temporary negative impact on your credit score. Avoid applying for new credit cards or loans while you’re preparing to buy a home.
Pay bills on time:Late payments can also lower your credit score, so make sure to pay all of your bills on time. Consider setting up automatic payments or reminders to help you stay on track.
Build up your credit history: If you’re new to credit or have a limited credit history, consider applying for a secured credit card or becoming an authorized user on someone else’s credit card to help build your credit history. Also get/keep a record of your on-time rental payment history.
Overall, it’s important to start preparing your credit well in advance of buying a home. By taking steps to improve your credit score and financial standing, you may be able to qualify for a better interest rate and save money over the life of your mortgage. Your real estate agent can be a great resource for more information on these topics.
FHA loans are a type of mortgage that is backed by the Federal Housing Administration (FHA). This means that if a borrower defaults on their loan, the FHA will cover the lender’s losses, which makes it less risky for lenders to offer these loans to borrowers.
FHA loans are popular among first-time homebuyers because they require a lower down payment than most conventional loans. In fact, borrowers can put down as little as 3.5% of the purchase price of the home. This makes it easier for people to become homeowners, even if they don’t have a lot of savings.
Another advantage of FHA loans is that they are more forgiving of credit issues than some other types of loans. Borrowers with lower credit scores may still be able to qualify for an FHA loan, whereas they might not be approved for a conventional loan.
However, there are some limitations to FHA loans. There are maximum loan limits based on the area where the property is located, and borrowers may have to pay mortgage insurance premiums for the life of the loan. Additionally, the property being purchased must meet certain minimum property standards to be eligible for an FHA loan. (Click here to see FHA home appraisal checklist).
Overall, FHA loans can be a great option for homebuyers who need a more flexible mortgage option, but it’s important to work with a knowledgeable real estate agent and lender to determine if an FHA loan is the right choice for your specific situation. Let’s talk about your situation and find the best solution for you. #ICanHelp
Be very careful…what you don’t know could damage your property!
The law of unintended consequences, which applies to life in general, applies to landscaping in particular. In other words, planting over here could mean trouble over there.
We’ve delivered over 1 million home inspections over the last 30+ years – here are some simple landscaping do’s and don’ts that we’ve compiled from our inspection data.
Do: Plan ahead.
Planting is like life – planning for anything is always the preferable approach. If your landscaping dreams include planting new trees or shrubs near to your house, planning ahead is especially important.
Plants, shrubs, and trees are lovely additions to your property, but be aware that every plant and tree is different and has different needs in order to thrive. Most importantly, every plant has unique requirements for space, including room to grow.
Don’t: Plant shrubs too close to the house.
Avoid planting shrubs too close to your home, not just because plants will come into contact with and damage the siding, but because shrubs retain moisture.
Moisture deteriorates exterior cladding – The single biggest issue with regards to shrubbery growing near or on the structure is moisture, which will accelerate deterioration of practically any type of exterior cladding.
Moisture attracts termites – Moisture is the #1 “conducive condition” for termite infestations. Plants are organic “cellulose-based” organisms. Guess what termites eat? Cellulose-based organisms. While termites are mostly interested in dead wood (building materials), termites can also attack roots of live shrubs and trees. Therefore, whenever you plant anything close to the structure, you must consider the possibility that you may be planting termite food right next to your house. Termites are migratory – if they attack trees or shrubs near your house, guess where they’re headed next?
Baby shrubs grow into monster shrubs. What claims to be a dwarf shrub or mini crepe myrtle today could be a shade tree in the blink of an eye.
You’ve seen them – houses covered with what once were baby shrubs. You need to account for adult sizes when choosing a location on your property. And don’t believe the plastic tags. If a vendor claims that a shrub will be 24″ tall, expect it to grow to be twice that size.
If shrubs grow more than you initially anticipated, trim the shrubs regularly – there should be at least 1′ of space between shrubs and the exterior of the structure.
Do: Check your slope.
“Grading” describes surface elevation changes when compared to other areas around or near the house. Proper grading is when the grade or slope of the elevation slopes downward and away from the home at a rate of 1″ per foot for the first 6′ and then a continued slope for at least 10′ from the foundation.
If the elevation looks flat or worse, slopes back towards the house, you have work to do before planting new anythings.
Grading should also ensure that water flows away from the house; if the grading near the house is OK but there’s a flood in the yard every time it rains, even the best near-home grading won’t prevent water intrusion.
Don’t: Plant trees too close to the house.
As bad as it is to plant shrubs too close to the house, you’re risking disaster if you plant trees too close to the house.
Structural damage – Tree roots can cause structural damage to your home depending on the proximity and type of tree. Ficus trees, for example, have very aggressive root systems and even a small ficus tree planted close to a structure could cause foundation damage. Oaks and maples have massive root systems, but actually may cause less damage because their roots generally go around obstructions rather than through them.
Plumbing damage – Tree roots can also sometimes cause plumbing problems. Aggressive root systems bore through older, brittle plumbing components like cast iron and clay that are under the structure; large roots can actually crush plumbing components. Our Sewer Scope Inspection often reveals infiltration of root systems blocking drainage in municipal systems as well as septic systems, repairs of which can be very costly.
Roofing damage – Tree limbs which stretch over your house are accidents waiting to happen. But even if that old walnut tree stays upright for 100 years, contact with branches and debris from the leaves and small sticks will gradually and prematurely wear away your roof covering.
Heaving damage – Tree roots can damage walkways and driveways. Root systems that heave walkways and driveways not only cause concrete and asphalt damage, but also create a “trip hazard” due to uneven surfaces.
Give trees 15′ to 20′ space from the structure.
Talk to your local nursery professional if you want to learn more about the various root systems. Or check out The Right Tree in the Right Place at the Arbor Day Foundation.
Do: Ensure proper drainage.
The best way to avoid structural deterioration from water is to keep the dwelling dry. Landscaping is an important component to help achieve a dry house. Planting according to area-specific types and species will help to ensure that excess water will be soaked up by plants, shrubs, trees, and lawn. Properties with poorly maintained landscaping are more susceptible to water penetration issues.
Installing barriers (retaining walls, landscaping timbers, vertical plastic edging, stones) can exacerbate the problem because barriers don’t just hold flowers and mulch – barriers block drainage. If you prefer to use landscape timbers and edging, make sure downspouts extend beyond the barriers. If your home is in cold climes, don’t direct downspouts onto the driveway and/or sidewalks; snow and freezing rain can make the walking areas unsafe and help to accelerate cracks in the driveway and/or sidewalk.