Your “Starter Home” Might Last Longer than You Think

New homebuyers often tell their agents that they are looking for their “starter home.” Several factors go into this approach. These are typically younger buyers, often without children. They may be looking for a maintenance-free home, like a condo, or they might assume that starter homes are more budget-friendly. There are plenty of good reasons to buy a home with the assumption that it’s only for a few years, but it’s usually wise to consider the fact that it might be for much longer.

As 2020 demonstrated so clearly, things can change without warning. Homebuyers choosing a small condo with the intention of living in it for only a few years might later find themselves trying to carve out space for children due to employment challenges or market changes. The good news is that many times— once you add in association fees, taxes, and other costs—an older home that needs updating could be just as economical as a brand-new condo with all the latest design features.

When buying your first home, it’s important to consider how you would manage if you needed to stay longer than expected. An older home might offer a yard where you could expand, or extra rooms which can become bedrooms. These options can give you flexibility as your lifestyle changes over the years.

If you buy your first home with the future in mind, you can protect yourself from the unexpected income changes, real estate price booms, or any other outside influence. Don’t discount the older fixer-upper simply because you plan to move in a few years—plans change, and giving this some prior thought can help you adjust more painlessly in the future.

10 Home Inspection Issues Red Flags

Most home buyers realize that they can’t expect a perfect home inspection report when buying a resale home. Cosmetic flaws and minor repairs are easily managed and shouldn’t be deal breakers. That said, there are some issues that are more serious and should give the buyer pause if not addressed adequately.

10 Home Inspection Red Flags

1. Leaky and Rundown Roofing–watch for signs of current or past water damage.
2. Poor Drainage–drainage issues can cause serious damage to the home foundation, siding, and basements.
3. Foundation Issues–signs of foundation problems can include cracks around doors and windows or uneven floors. Foundation problems can cost thousands of dollars to correct.
4. Plumbing Problems–major plumbing issues should be considered carefully and further explored.
5. Pest Infestations–termites and other wood-eating pests can cause extensive damage that can be hard to find and costly to repair.
6. Mold–that “musty” smell could be due to hidden mold and further investigation should be taken as mold can be dangerous to the health of the family. Depending on the type of mold, it can be very difficult to remove entirely.
7. Faulty Heating System – a malfunctioning furnace can be a fire hazard.
8. Electrical Wiring–faulty wiring can cost thousands of dollars to repair.
9. Structural Damage–sagging joists, rafters, and door jambs can be evidence of larger issues.
10. 10. Deferred Maintenance – a home in poor condition could be hiding more serious issues due to chronic neglect.

Homebuyers should be alert to these issues and know the costs to repair before concluding the sale. Home sellers should address these issues before putting the home up for sale to ensure they get the best possible sales price.

Mid-Century Modern vs. Contemporary

There has been a great deal of excitement in the design field concerning the Mid- Century Modern style. This ’50s and ’60s home décor trend is evidenced in every furniture store as more brands are incorporating the vintage look with modern lines. Yet what differentiates a Mid-Century Modern style from one that is merely Contemporary?

Both styles tend toward the minimalist look, but Mid-Century often features more color. Colorful carpets, walls, and furnishings—as well as vibrant wall trims and wallpaper—are all signs of a Mid-Century room while Contemporary styles lean toward neutral tone-on-tone elements with limited design extras, such as pillows or rugs.

Another common design element is the clean lines of cabinets and furnishings. Sharp corners and minimal finishings link the two styles together. Mid-Century Modern, however, often includes natural elements such as wood; furniture often includes graceful curves. Contemporary pieces are often colder by comparison and emphasize a sleek design that can fade into the overall look of the space; no single element commands attention.

Finally, the flow of Mid-Century Modern homes differs from that of a Contemporary home. The trend toward open floorplans and great rooms is a new concept and Mid-Century homes include multiple spaces for specific purposes. For instance, it’s common to find an eat-in kitchen walled off from the living spaces, perhaps with a pass-through window or wet-bar area for serving.

Mid-Century Modern design introduces some beautiful options for homes. With thoughtful design concepts, it’s possible to introduce some of these elements to any home. Merging eras and styles is one way to create a unique home environment that is both functional and beautiful.

Tips for the First-Time Home Seller

There is a lot of attention paid to first-time homebuyers. Most real estate agents and lenders have some kind of guide to help first-time homebuyers navigate their first home purchase, but what about the first-time seller? 

Selling your home for the first time can be just as confusing as a home purchase, so here are a few things to remember as you navigate your home sale.

Before that first showing, it’s important to prepare. This involves not only cleaning, decluttering, and staging the home, but also learning about your local real estate market and finding the best agent for your needs. 

Interview more than one agent and ask lots of questions. Learn about the services they offer: do they include professional photography, video, or virtual tours? Ask for a comprehensive market analysis (CMA) and ask each agent their suggestion for the listing price and their method for arriving at that number. Use this information to determine the best agent to assist you.

Once you have an agent, stay involved. Discuss the plan for showings and open houses. Try and be flexible to allow for as many potential buyers as possible viewing your property. Review the listing online for accuracy and stay in touch with your agent for feedback from showings.

Once you start getting offers, respond as quickly as possible. It’s not just about the price; watch for terms, such as length of escrow and contingencies, when evaluating these offers. Be prepared to move so that you can take advantage of a good offer, such as all-cash.

The most important aspect of a successful home sale is the relationship you have with your agent. Be transparent about your needs, concerns, and goals; insist that your agent do the same, and working together you will navigate through your first home sale successfully. 

After Forbearance – Now What?

Covid-19 has impacted homeowners across the country. With job losses and income reductions, many have taken advantage of the ability to enter a forbearance program with their lenders. During the forbearance program, the agreements state that no late fees will be assessed, and the balance of missed payments will be deferred to the end of the loan.

As a result, many homeowners have been able to keep their homes during this time of economic upheaval.

Some of these affected may now have stabilized incomes and are ready to exit forbearance. They might be wondering if they will be penalized for this if they choose to refinance or buy a new home. Fortunately, there is good news for these homeowners. Part of the program is that the lender will not report these late payments to the credit bureaus so the borrower will not have that issue to contend with when they are ready to find a new loan. 

Lenders understand that this is a unique situation and that it is not representative of the way a borrower will remit payment in the long run. Additionally, some potential homebuyers may need to relocate to take advantage of new employment opportunities—requiring them to sell their homes and buy new ones. The good news is that homeowners who exit their forbearance plans can apply for a refinance or new loan after 3 consecutive, on-time mortgage payments. 

Covid-19 has impacted our lives in many ways. Fortunately, the lending community has taken unprecedented steps to ensure the long-term damage to individuals and housing is minimized as much as possible.