Owning a Home Helps Protect Against InflationYou’re probably feeling the impact of high inflation every day as prices have gone up on groceries, gas, and more. If you’re a renter, you’re likely experiencing it a lot as your rent continues to rise. Between all of those elevated costs and uncertainty about a potential recession, you may be wondering if it still makes sense to buy a home today. The short answer is – it does. Here’s why. Homeownership actually shields you from the rising costs inflation brings.Freddie Mac explains how:  “Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.” Unlike rents, which tend ... 06/30/2023

Tips To Help You Buy a Home in Today’s MarketUse these tips to make your best offer in today’s sellers’ market. Let’s connect so I can help you buy that home you’ve been wanting.Watch Now 06/22/2023

A 4/2.5 Pool Home on Lake in Shenandoah SELLS for $805,000!A 4/2.5 pool home on lake in Shenandoah SELLS for $805,000!  The new owners of this beautiful home will get to experience day after day, breathtaking sunsets, tropical breezes from the wide lake that you can fish or canoe on, right from your own yard, a sparkling pool with a big patio and built in BBQ, and a side yard with plenty of room for a boat or garden.The top rated Broward County schools that children living in this home will attend are Flamingo Elementary School, Indian Ridge Middle School and Western High School.The Shenandoah community offers walking trails and a brand new park within walking distance for you to enjoy with your family and sidewalks to stroll in the morning or evening.  This home is also close to great ... 06/19/2023

Arboretum 4/2 Single Family Home in Davie SELLS for $595,000! An Arboretum 4/2 single family home in Davie SELLS for $595,000!  This upgraded and spacious 4 bedroom home with nicely updated bathrooms, BIG kitchen, large master bedroom and HUGE covered patio with private yard has a new family! Arboretum is lovely, friendly and established community in Davie that is conveniently located near great schools, shopping, dining and major highways that will get you to beautiful Florida beaches or Fort Lauderdale International Airport.  This community is also close to great parks to enjoy with the family including, Robbins Park, Tree Tops Park and Flamingo Gardens.  Children living in this Arboretum home will attend these Broward County schools: Flamingo Elementary School, Indian Ridge Middle Sc... 06/16/2023

There are four basic stages of residential construction including: The foundation stage begins with excavation, footings, foundation walls or slab, waterproofing, backfill, compaction and underground rough plumbing and electricity.  Municipal inspections are done prior to pouring the foundation while items are visible. The framing stage includes the wood or steel framing, exterior walls and roof sheathing, exterior trim and siding, windows, doors, and roofing.  Depending on the municipality, there could be inspections of the rough framing separate from the roofing. Next in this stage comes rough plumbing including water, waste, and vent piping, rough electrical, rough mechanical, ductwork, wiring, and electrical panel installation.  Municipalities will usually inspect plumbing and elect... 06/12/2023

An appraisal gap describes the difference between the sales price and the lower amount of the appraisal required by the mortgage being obtained by the buyer.  It becomes an issue if the seller is not willing to lower the price or the buyer is not willing to pay the difference in cash.Looking at the issue from the seller's perspective, "if the buyer wants my home and he can't get the loan he wants, he'll have to make up the difference in cash."  The buyer might have a different view like "If an independent appraiser can't justify the price, I'm not going to pay more than appraised value." Pay the difference in the appraised value and the purchase price in cash. Solution - Assuming the buyer has adequate cash reserves and is willing to pay above appraised value, this will satisfy the lend... 06/12/2023

Opening and closing a faucet increases and decreases the water flow, lowering interest rates increases home sales and raising interest rates decreases home sales.When home sales increase during periods of limited inventory, demand increases and prices go up.  Contrarily, when home sales decrease, demand could lessen and prices moderate. There is opportunity with higher rates because it affects sales and demand, which in turn keeps prices in check.  By waiting for rates to come down, and no one knows by how much but certainly not to the 3-4% range, buyers' pent-up demand will affect the already low supply and cause prices to increase.Let's look at a scenario where you could buy a home today for $400,000 with a 90% loan at 6.5% for 30-years with P&I payments of $2,275.44.  If interest rat... 06/12/2023

Nobel Prize recipient, Richard Thaler, in his research into seemingly irrational economic behaviors, "found that consumers generally search too little, get confused while evaluating complex alternatives, and are slow to switch from past choices, even if it costs them." "Why are consumers leaving money on the table?"Based on this behavior, a borrower securing a mortgage might depend on their existing banking relationship or a single referral from a friend or agent rather than shopping multiple lenders.When shopping for a lower mortgage rate, consider that not all lenders share the same business practices.  Some may lure unsuspecting borrowers to a rate, knowing full well that they cannot deliver on it.  After making a loan application and supplying information necessary for approval, the... 06/12/2023

Doing nothing may be a lot more costly than doing something.  With rates twice what they were in 2021 and the first half of 2022, many buyers are sitting on the sideline.  For some, it has to do with not being able to afford the home they want at today's mortgage rates and for others, it is not willing to accept that the low rates that were available are not only gone, but may never be available again.In the late 70's, rates were around 10% and in the early 80's went up to 18%.  Interestingly, many buyers went ahead and purchased at those record level highs and refinanced a few years later when rates came down.  By the end of the decade, prices had continued to increase so that buyers had a significant equity in their home.Tenants who waited for the rates to go down didn't see savings b... 06/12/2023

There are fees and expenses associated with mortgages that must be paid by the closing date for closing costs, and pre-paid items, in addition to the down payment.  These amounts can vary according to the type of loan, mortgage company, customary practices of the area, and the terms of the contact.According to Freddie Mac, the amounts could vary between 2-5% which is considerable.  Most buyers want a more specific number and that can depend on the conditions mentioned previously.For buyers, the largest amounts are loan origination fees which is usually one percent of the amount borrower, points paid by buyer which are one percent or more of the mortgage amount, owner's title policy if paid by the buyer, and the pre-paid items mentioned above.Certain types of mortgages allow the seller t... 06/12/2023

Sales in February 2023 were up 14.5% month over month and still down 22.6% year over year according to the NAR Housing Snapshot.  The median sales price dipped 0.2% to $363,000 and there are 2.6 month's supply of homes on the market compared to 1.7 months a year ago."Inventory levels are still at historic lows, and consequently, multiple offers are returning on a good number of properties." According to Lawrence Yun, Chief Economist for the National Association of REALTORS�.It is still important to have a strategy for potentially competing with other buyers on the house you want to buy.  The plan should include several available provisions and options, so that at the time of drafting the sales offer, you can consider exactly what to include based on the situation.Unless a person is payi... 06/12/2023

The housing market in 2021 and part of 2022 was anything but normal.  Mortgage rates were at all time lows and may never reach those levels again.  Double-digit appreciation drove prices to new heights.  Low inventories fueled by high buyer demand made multiple offers a normal expectation.As we look at the market snapshots provided by MLS in the various markets across the U.S., it appears that things may be returning to normal, but not necessarily in all areas.  While there are more homes on the market now than a year ago, there are less sales due primarily to the doubling of mortgage rates in 2022.Time on the market is lengthening but that can be explained by the removal of approximately 15 million homebuyers who now have affordability issues.  When the market shifted, sellers expectat... 06/12/2023

If you've ever been in a Monopoly game after most of the properties have been purchased and developed, it can be a relief to land on Free Parking, knowing the dice must rotate to the next player giving you a respite from paying rent.  Like the game, in real life, it would be nice to avoid paying rent and even better to have people paying you rent for property you own.Winning in the game of Monopoly is all about investing.  If you travel around the board, trying to buy the ultimate property and pass Go to get another $200, you're missing the opportunity to purchase good properties along the way that could lead to upgrading into your dream home.Starting early to buy your first home gives a buyer a chance to acquire a property with a minimum down payment, and inevitably, have a lower payme... 06/12/2023

The biggest shock to homebuyers is the soaring mortgage rates of 2022 that doubled in one year resulting in approximately 15 million mortgage ready buyers displaced from the market due to affordability issues.As of February 23, 2023, the 30-year fixed rate mortgage was at 6.5%.  While that is twice as high as it was on January 6, 2022, it is still lower than the 7.75% average rate since April 2, 1971, according to the Freddie Mac Primary Mortgage Market Survey.When rates increase at a rapid pace like this, it takes time for the public to adjust and begin to accept it as the new normal.Prior to the housing bust that led to the Great Recession, the normal for mortgage rates was in the 6% range and existing home sales were over 6.5 million for three years.  From 2007 to 2014, home sales we... 06/10/2023

A person's decision to sell their home comes with a lot of other decisions causing an owner to stress or procrastinate.  Early in the process, the owner will consider selling the home "As Is" to avoid the looming issues that accompany selling a home.From a seller's standpoint, "as is" means the buyer will purchase the home in its current condition without asking for any repairs.  While it is convenient for the seller to take this approach, the normal trade out is the property will not result in the highest possible sales price.Regardless of how the home is sold, the seller is required to disclose all defects which include repair history, condition of systems and appliances, water damage, pest infestation, radon, and other things that affect the value and livability of the home.From a bu... 06/10/2023

How to Choose the Best Houseplants   Just like picking paint and furniture, it’s important to spend time choosing the best plants for your interior space. Not only should you be considering the care your new plant friends will need, but also how they will impact on your space as they grow to their full forms. Below are several tips for picking the best houseplants. Understand sun exposure. The quickest way to shrivel a houseplant is by giving it the improper amount of sunshine. Take the time to get to know the sunniest and shadies areas of your interior, and pick plants that thrive in that environment. Consider maintenance. If you’re choosing houseplants that need a good amount of TLC—water, trimming, etc.—make sure you have the time in your schedule and bandwidth in your brain to take... 06/10/2023

Locking your interest rate protects you from increases due to market conditions.  Locking early safeguards your budgeted payment.  By locking the rate, if the market goes up, you get the lower rate; if it goes down after the lock, you may be able to pay a fee and lower the rate.Knowing when to take the lock is determined by which direction you think the market is going.  If you think rates are going up, lock in early.  If you think rates are going down, ride the rate to within a few days of closing.Some lenders may allow a borrower to lock a rate after pre-approval but is more common to not offer a lock until there is a signed contract on a home.  Even with a pre-approval, it could easily take 30 days or more to close a transaction and the rates can move a lot in that period.There may b... 06/10/2023

 Sellers, who last year were not willing to make any concessions, are much more likely to do so this year due to the softening of the market because of inflation and higher mortgage rates affecting affordability for buyers.Concessions can take place in different forms.  A seller could offer to pay the buyer's closing costs or pay points for the buyer to get an FHA or VA loan.  Another option would be to pay for a 2/1 buydown that would lower the buyer's payments in the first two years of the mortgage.Buydowns can be temporary or permanent and are achieved by pre-paying the interest at the time of closing.  Typically, the seller will do this as an inducement to the buyer.  While individual lenders set the price for permanent buydowns, a common rule-of-thumb would be two points, or two pe... 06/09/2023

 The TCJA of 2019 dramatically increased the standard deduction so that many homeowners benefit from taking that rather than itemizing their deductions.  Taking the standard deduction may result in a larger deduction even if you have no expenses that qualify for claiming itemized deductions.Another thing that reinforced that was interest rates for mortgages were low at the time and the interest paid plus the property taxes were less than the standard deduction.In 2022, mortgage rates more than doubled, so, anyone who purchased a home or refinanced at the higher rates might benefit from itemizing rather than taking the standard deduction.  The takeaway in this article is to compare both methods each year to see which way provides the larger deduction.For 2022, the standard deduction for ... 06/09/2023

Why Buying a Vacation Home Beats Renting One This SummerFor many of us, visiting the same vacation spot every year is a summer tradition that’s fun, relaxing, and restful. If that sounds like you, now’s the time to think about your plans and determine if buying a vacation home this year makes more sense than renting one again. According to Forbes:  “. . . if the idea of vacationing at the same place every year makes you feel instantaneously relaxed, buying a vacation home might be a wise move.”  To help you decide if making a move like this is right for you, let’s explore why you may want to consider purchasing a vacation home today. Benefits of Owning Your Vacation HomeYou don’t have to worry about finding a place to stay. It can be a challenge to find a rental where you want, when you... 06/09/2023