Upgrades Millennial Buyers Won’t Pay More For

Home sellers assume they must make some upgrades before putting their home on the market. While any deferred maintenance or extreme wear-and-tear issues should be addressed, major upgrades or updates may not net more money when you sell; especially with millennial buyers, who are looking for their first home in droves.

6 Common Upgrades Millennial Buyers Won’t Pay Extra For – and 1 They Will

1. Professional Landscaping–Although a nicely maintained yard is attractive to all buyers, over-the-top landscaping with special hardscapes or fountains will not appeal to millennials.

2. Upgraded Utilities–You may appreciate the new plumbing, but buyers will not pay more for copper or PEX pipes or the brand-new junction box.

3. HVAC–Again, new systems are appreciated, but buyers won’t offer more for the latest systems.

4. New Roof–A leaking roof will certainly lower the sales price but replacing one will not have the opposite effect.

5. Swimming Pool–Not only will millennial buyers not pay more for a pool, but they may shy away entirely, considering the cost of upkeep and safety for young children.

6. Trendy Home Decor–This may seem counter-intuitive but adding the latest design features that will quickly go out-of-style can be a turnoff.

And finally, the one they will pay extra for? Solar panels. Younger buyers are conscious of their carbon footprint and are looking for environmentally-friendly options in their homes and lives. The millennial buyers are here, and understanding what they want in a new home will help sellers capitalize on this fresh market of home buyers.

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5 Tips to Create a Home Bar

So many businesses have been affected by the events of 2020, causing permanent and temporary closures of many of our favorite spots—including the corner bar. The local watering hole has always been a great place to meet friends, watch sports, and unwind after work.

Many homeowners have used this time at home to work on home improvement projects. Why not consider adding or improving a home bar to the list? Making simple changes can have a large impact.

1. Moody Paint–Carve out an unused nook and paint it a dark,masculine color. Think of the old speakeasy with dark wood and soft lighting.
2. Sophisticated Seating–If your space allows, create a lounge-style
atmosphere with barstools or a bistro set. A black or wood finish will
emphasize the feel of a bar.
3. StockUp–The key to a great bar is having the right tool and ingredients.
Retailers offer a variety of styles for such items as shakers, muddlers,
corkscrews, among others. Don’t forget the alcohol and mixers.
4. OpenUp–Open glass shelving will showcase your style.Save money by
displaying the liquor bottles themselves instead of decanters.
5. Make It Mobile–If you don’t have extra space for your bar,there are a
multitude of bar carts to not only suit your style but allow you to go where the party is.

If you’ve exhausted your weekend honey-do list, consider spending a little time to create a home bar. With a little thought and attention, you can entertain in style, even if you’re alone.

Understanding The Back-up Offer

“When can I consider my home sold? This is one of the most common questions real estate agents are asked. While the laws vary in different states, generally the contract is binding once both parties sign the offer. At that time the closing process begins. This is also the time when sellers must stop considering other offers, but they can accept back-up offers.

What is a back-up offer? This is when the seller accepts an offer contingent upon the first one falling through. There are many reasons why the home purchase might not close—the buyer may fail to secure the loan, the home inspection may find issues the two parties can’t resolve, it could even be that the Homeowner’s Association has rules that the buyer is unprepared to accept. Whatever the reason, real estate agents know that the deal isn’t done until it closes.

A back-up offer should be carefully executed. Both buyer and seller must be able to pursue other options. Unless the buyer is willing to wait without seeking an alternative property, the back-up offer should be written to allow for the possibility that they find an alternative home in the meantime. The seller, on the other hand, must make clear they are currently obligated to another buyer and will consider the back-up offer only if the current one cancels.

Back-up offers can be a great tool in a fast-moving real estate market. Writing the offer virtually guarantees the listing agent will notify you if the home becomes available again. This gives the buyer an advantage in a seller’s market, increasing the opportunity to capitalize on a home that fell out of contract.

Fresh and Eclectic Design Trends for 2021

Recent interior design trends have focused on one primary era or design scheme. Mid-century modern furniture and accents have dominated the magazine covers and home shows as decorators have worked with their clients to bring this trend into their spaces.

Yet, what to do about the beautiful antique chest from your grandma or the dining room table you inherited from your mom? These pieces of history seem to have no place in modern design and have been relegated to storage units and garages over the past decade. Well, it’s time to pull them out again as design trends are moving away from stark modern schemes to a warm, eclectic look.

The main principle in merging design styles is to focus on one unifying element— like warm wood tones or the high sheen of gold accents—and then look for pieces that suit that theme. For example, a gold-gilded mirror with baroque detailing can complement a room filled with neutral furnishings with gold or silver-toned accent pieces. The unifying element is the color and sheen of the mirror. Mix and match your wood antiques with modern furniture of the same kind of wood or hue. Add oriental-style rugs, traditional paintings, and interesting vases against a backdrop of subtle sofas and industrial accents for a unique look.

As with all décor, the room and style should reflect the owner and their lifestyle. Start with a few pieces and look for ways to meld them into your living spaces. There is no reason to reject the past simply to have a stylish home.

Landlord Deductions from Security Deposits

A rental deposit against damage is a standard part of all housing rental agreements. The purpose of the security deposit is to protect the landlord from loss in the event the tenant does not take proper care of the property. Most renters don’t even think about it when they sign a new lease, assuming they will get their entire deposit back when they move out.

So, it often comes as a surprise when the refund amount is lower than they paid when they signed the agreement. Many renters are surprised to find out what the landlord can deduct from their deposit. Here are some common items that the landlord can charge to renters when they leave:

Non-Payment of Rent – This should seem obvious; if the tenant leaves before the lease is up or simply owes back rent, the landlord can deduct or keep the deposit to compensate.

Unpaid Utilities – Utility companies will hold the landlord responsible for unpaid bills, so if the water or electric bill has been unpaid, they will deduct this from the security deposit.

Unusual or Excessive Cleaning – While normal wear and tear are not deductible, excessive cleaning can be charged to the renter.

Damage – This also should be obvious. This was the main purpose of the deposit.

Trash and Other Items Left Behind – Renters should think twice about leaving that old patio furniture behind. Any cost to remove and dispose of anything left in the property can be charged against the deposit.

Finally, breaking the lease for any reason could put your deposit at risk. Renters need to educate themselves about the risks to their deposit and read the lease carefully for any specific terms included by the landlord. This can help renters avoid the shock of a smaller-than-expected refund check.

Are You Being Represented By A ‘Yes’ Agent

We all know the type. The person who just says “yes” to anything, never challenging or questioning an opinion or strategy. These people-pleasers agree with anything suggested; while they may be nice friends, in real estate a yes-man or yes-woman can actually cost you money. Often a lot of money.

No one likes to leave money on the table, but having an agent who doesn’t challenge unrealistic expectations is not serving the client. So, how can you spot these yes-agents?

These yes-agents can take many forms. On the seller side, they could be the agent that lists a home at an unrealistic price. Well-priced homes are selling quickly, but that does not mean that a seller can add 10% or more to recent sales and expect to sell the home. Over-pricing a home can cost precious time as potential buyers forgo viewing the property in favor of well-priced options.

As the home lingers on the market, the seller must eventually lower their price to market value. Buyers often assume the seller is desperate to sell and offer lower prices than they might have at the beginning of the listing.

Buyers represented by a yes-agent could find themselves writing unrealistic offers as well. There is danger in writing a low-ball offer just to “see if it sticks.” The yes- agent might be willing to send over the offer, but the seller is just as likely to assume the buyer isn’t serious and move to more realistic offers. The yes-agent just cost the buyer the home.

Spotting a yes-agent, and avoiding them, can save real estate clients time and money, and ensure they achieve their real estate goals.

Is Suburban Living Right For You?

The common assumption is that you live in the city when you’re young and then move to the suburbs when you’re ready to settle down. While no one can deny that raising children in an urban environment presents challenges, the truth is that not everyone is suited for the suburban lifestyle.

5 Reasons You Might Wish You Never Moved to the Suburbs

1. Chain Restaurants–Cities offer a wide variety of dining options—from steak houses to a world of ethnic restaurants, tapas bars, and micro- breweries—all of which are open past 9 pm. In the suburbs, the choices are limited to chain restaurants. Limited suburban nightlife also translates to earlier closing times.
2. Chasing Contractors is a Way of Life–A big house with a yard brings never- ending maintenance projects. Homeowners choose between the weekend honey-do list or writing the check for professionals.
3. Not Necessarily a Melting Pot–Suburbs tend to lack diversity. Even in 2021, most suburban dwellers gather with their own community. Cities tend to draw a wider variety of cultures and personalities.
4. You Need a Car–Living in the city means you can get places via public transportation, or walking. Suburbs rarely have public transportation options, and you’ll need your own vehicle to get to all the places sprawled across the suburbs.
5. School Choice Isn’t Automatic–One of the big draws to the suburbs is great schools, but this isn’t always the case. It can be overwhelming to choose a school in the suburbs if the assigned district is subpar, and the ‘right’ one is often miles away, making for a lot of chauffeuring kids and/or lengthy bus rides. Kids in the suburbs can’t always conveniently walk to school, either.

Choosing whether to live in the city or the suburbs is a personal choice, but it’s worth considering all the aspects of the differing lifestyles on offer. Even with children, a low-maintenance urban lifestyle with variety could still be the right place for you and your family.

ABC’s of Construction Loans

Building a home might sound like something reserved for the rich and famous, but the truth is, it might be easier than you think to get a construction loan.

What is a construction loan?

Construction loans are short-term, higher-interest-rate mortgages that cover the cost of building or renovating a home. The buyer qualifies for the final mortgage and the lender pays the contractor for cost on a pre-approved schedule. Once the construction is complete, the loan is converted into a traditional home loan.

Type of Construction Loans

Construction to Permanent – Converts to a permanent loan with the interest rate locked in at closing.

Construction Only – Must be paid off when construction is complete, so the borrower will then need to get new financing.

Renovation Construction Loan – Cost of renovations are included in the original mortgage based on the value of the home after the repairs or upgrades. Best used for buying a fixer-upper property.

What’s included in the loan? The construction loan generally pays for:

Land

Labor and materials

Plans, permits, and fees

Contingency reserves to allow for changes and delays

Can I qualify? All mortgages have minimum qualifications for approval. Construction loans are riskier for the lender because there is no existing collateral in the form of the home. Along with typical requirements for debt-to-income limits and FICO score minimums, the lender will often ask for a higher down payment (30% is typical) and a plan to pay off the loan at the end of the project (proof of cash or loan).

Things to Consider before Buying a Home Together

It used to be that couples first got married, and then bought a home together. No more! Modern couples no longer consider marriage a prerequisite for buying a home together. Buying a property together can complicate either a breakup or a divorce if not considered upfront.

No one likes to think about the end of a relationship, but buying a home is a huge investment – not only in the relationship but financially. The partners may have differences in income, down payment, and contributions to the home. In the event of a separation, how will these issues be addressed? In other words, what happens if you break up?

The easiest way to ensure that everyone is protected is the title. Most married couples opt for Joint Tenancy that provides each homeowner an equal interest in the value of the property. The assumption is that marriage involves a merging of income and assets.

For couples who plan to keep their finances separate, a better option could be a Tenancy in Common. This form of title provides each owner with a separate, transferrable interest in the property. The interest does not need to be equal to the other; this could give one a larger interest if they contribute more financially. The interest can also be sold or inherited separately.

Don’t let the excitement of a home purchase keep you from considering the future. Before closing on that dream home together, consider the exit strategy – just in case.

Can You Sell An Outdated House?

It seems that everywhere you turn there are companies who advertise buying ugly houses. These messages offer to quickly buy any house, regardless of the condition. The problem is that their offers are often significantly below market value.

If you’re a seller whose home needs some attention, you might think these companies are your only option. Some of the offers sound attractive; quick sale, all cash, no commissions, and no fees. But before you do anything, it’s worth your time to call a local real estate agent for a second opinion.

3 Reasons to Call a Real Estate Agent Now

1. Free Advice–The real estate agent will not charge you anything to simply come look at your home.

2. Your House Might Not Be that Ugly–You may be surprised to find that your home is quite marketable. A few years ago, a 1950s mid-century modern home would have been considered a tear-down. Now, these ranch homes command top dollar and are in very short supply.

3. A Path Forward–If your home does have some issues, the agent can offer some ideas about moving forward. They can suggest local contractors to provide repair/upgrade services or market to investors that might still offer significantly higher prices than the quick-sale guys.

Even outdated houses sell. We are in a seller’s market in almost every part of the country. Selling your home has a large financial impact on you and your family. Don’t make assumptions about value, reach out to a real estate agent, and make sure you understand all your options so you can get the best offer possible.