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Should You Renovate Or Move?

(Published on - 10/17/2021 6:45:33 PM)

How to Renovate Your House On a Budget | Student Loan Hero

The Last 18 months changed what many buyers are looking for in a home. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:

  • 70% of respondents want more outdoor living space
  • 69% of respondents want a home office (48% wanted multiple offices)
  • 46% of respondents want a multi-function room/flexible space
  • 42% of respondents want an au pair/in-law suite
  • 39% of respondents want an exercise room/yoga space

if you're a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:

  1. A possible desire to relocate
  2. The difference in the cost of a renovation versus a purchase
  3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

In either case, you’ll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.

Home Equity Is Skyrocketing

The record-setting increases in home prices over the last two years dramatically improved homeowners’ equity. The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:The Big Question: Should You Renovate or Move? | Keeping Current Matters

Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently: 

“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity. 

If you decide to renovate, you’ll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between the down payment and the cost of your next home.

Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you’ll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you’re one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

First Step: Determine the Amount of Equity in Your Home

If you’re ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you’ll need two things:

  1. The current mortgage balance on your home
  2. The current value of your home

You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.

Bottom Line

If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home.

Source: Keeping Current Matters

 Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


The Main Key To Understanding the Rise in Mortgage Rates

(Published on - 10/10/2021 6:36:14 PM)

 

With Mortgage Rates Rising, Buy a Home Now or Pay More Later? | realtor.com®

 

Every Thursday, Freddie Mac releases the results of their Primary Mortgage Market Survey which reveals the most recent movement in the 30-year fixed mortgage rate. Last week, the rate was announced as 3.01%. It was the first time in three months that the mortgage rate surpassed 3%. In a press release accompanying the survey, Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June.”

The reason Khater mentions the 10-year U.S. Treasury yield is because there has been a very strong relationship between the yield and the 30-year mortgage rate over the last five decades. Here’s a graph showing that relationship:

The Main Key To Understanding the Rise in Mortgage Rates | Keeping Current Matters

 

The relationship has also been consistent throughout 2021 as evidenced by this graph:

The Main Key To Understanding the Rise in Mortgage Rates | Keeping Current Matters

The graph also reveals the most recent jump in mortgage rates was preceded by a jump in the 10-year Treasury rate (called out by the red circles).

So, What Impacts the Yield Rate?

According to Investopedia:

“There are a number of economic factors that impact Treasury yields, such as interest rates, inflation, and economic growth.”

Since there are currently concerns about inflation and economic growth due to the pandemic, the Treasury yield spiked last week. That spike impacted mortgage rates.

What Does This Mean for You?

Khater, in the Freddie Mac release mentioned above, says:

“We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.”

Nadia Evangelou, Senior Economist and Director of Forecasting for the National Association of Realtors (NAR), also addresses the issue:

“Consumers shouldn’t panic. Keep in mind that even though rates will increase in the following months, these rates will still be historically low. The National Association of REALTORS forecasts the 30-year fixed mortgage rate to reach 3.5% by mid-2022.”

Bottom Line

Forecasting mortgage rates is very difficult. As Mark Fleming, Chief Economist at First American, once quipped:

“You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”

That being said, if you’re either a first-time homebuyer or a current homeowner thinking of moving into a home that better fits your current needs, keep abreast of what’s happening with mortgage rates. It may very well impact your decision.

source: Keeping Current Matters 

 Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


3 Remodeling Projects That Prospective Buyers Desire

(Published on - 10/3/2021 3:41:38 PM)

Remodeling is a great way to fix, update or upgrade your home while increasing its value, but costs can add up. It’s important to prioritize the projects that will not only benefit you and your family in your daily lives, but also will attract future buyers if and when the time comes to sell.

In general, it’s best to move forward with projects that are cost-effective and useful to anyone who might occupy the property down the line. Here are three projects to consider:

1. Kitchen

When deciding which remodeling project to take on, think about the areas of your home where you spend the most time. For many of us, one of these rooms is the kitchen, a room that potential buyers are certain to notice. Remodeling an entire kitchen can become an overwhelming process, but there are a few areas you can focus on to make a dramatic difference.

Cabinets take up a large portion of your kitchen and can look run down or get damaged over time. Sanding down your cabinetry, giving them a fresh coat of paint and adding new hardware will take a little extra effort, but is a cost-effective update that will be worth it in the long run. If it’s within your budget, consider replacing the cabinets completely.

If your countertops are starting to show their age, think about upgrading to a material like granite or quartz that will resist heat, scratches and stains. Stone countertops will ultimately last longer than laminate countertops, which will save you money in the long run.

2. Bathroom

The bathroom is another area that’s often crying out for a remodel, and is definitely a selling point of a home. At the very least, consider redoing the caulking and updating fixtures like cabinet hardware, faucets and showerheads. These are inexpensive upgrades that will make an immediate visual impact. Redoing or replacing the vanity to add more counter space or storage space is always a good idea as well, if your budget will allow.

3. Floors

Some form of flooring will be in every room of your home and is one of the first things a potential buyer will notice upon viewing your property. While this isn’t typically a budget project, updated flooring will certainly add value to your home. Laminate, tile or wood flooring are more convenient and easier to clean than carpet, though some people do prefer to have carpet in certain rooms, like the master bedroom. Freshening up the materials on the floor can take your home to the next level.

Final Thoughts: Don’t Underestimate the Little Touches.

There are many easy, budget-friendly steps you can take to up the appeal of your home. It's true that a fresh coat of paint in a neutral color can make a world of difference in a room. If selling is something you’re considering down the road, other upgrades like extra storage space, central air and washer/dryer hookups are key attributes that appeal to buyers.

Upping your home's curb appeal is a great way to make a good first impression on potential buyers. Simple touches like painting or replacing the front door can have a major impact. If your home has a walkway, consider pouring new concrete or installing new pavers. Spruce up the front porch with a fresh coat of paint or new steps if the old ones are struggling or need a facelift.

Lastly, lighting is another easy way to upgrade your home. Consider upgrading to modern, energy-efficient light fixtures throughout your home, or tackle a bigger project and install larger windows to let in more natural light.

Any project you decide to tackle in your home should be for the benefit of you and your family, but it's a good idea to consider the return on your investment when putting any additional money into your home. If there’s any chance you might sell in the future, try to choose projects that will ultimately up the resale value of the entire home.

Talk with a local real estate professional today to determine what is the best way to spend your time and money before you sell.

 Article Source: Rismedia Housecall 

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


Essential Items Of A Man Cave

(Published on - 9/26/2021 5:43:55 PM)

Remodeling your home? Have an extra room in the basement you’re not sure what to do with? Maybe it’s time to create the ultimate man cave! Whether you want a place for Friday night poker or to watch your favorite team take on their rivals, a man cave is the perfect place to sit back and relax. Check out these six essentials for creating a dream room.

Beverage Bar

If you have been in a man cave or done any research online, you know that most will have a built-in beverage bar on one of the walls. This bar is essential for keeping you and your friends happy and hydrated throughout the game. Splurge a little and stock up on your favorite beer or liquor to either display or taste on a special occasion. Not much of a drinker? No problem. Having a beverage bar with a fridge allows you to have soda cans and water on hand so you don’t have to run back and forth to the kitchen all night long. Plus, the counter does double-duty as a snack bar.

Electronics

What’s the number one thing a man cave needs? A killer home theater, of course. Take this opportunity to perfect your viewing experience and make your house the spot to watch the Super Bowl, Olympics, or Masters. A nice entertainment system is not cheap, but watch for seasonal deals at local electronics stores or online avenues to save some cash.

When it comes to selecting a television and sound system, we recommend talking to a professional. He or she will be able to provide suggestions for television and audio systems that will work best in the size of your space. After all, you want all your fellow cave people to be able to see and hear all the entertainment.

Recline & Relax

It’s no fun binge watching your shows, listening to music, or chilling out if the seating isn’t comfy. For this reason, finding a great couch and a great recliner is essential to your man cave setup. We recommend selecting a couch for guests that you invite to your cave but reserve the recliner as your spot to relax and unwind after a long day.

Although you can find plenty of furniture online, it can be hard to tell how comfortable the fabric and cushions are from a picture. Try scouting out your local furniture store to see which brands you like best. You can always look for better deals online, but keep in mind that many stores will price match!

Simple Decor

Some guys don’t pay too much attention to decor on the walls, but you should still try to make your space look put together and personalized. You can make your man cave look like a million bucks just by adding some cool photos to the walls or pieces to the tables. Old black and white photos of your team’s baseball stadium, framed concert tickets, or some photos of you and your buddies back in college are great ideas to help you get started. This space is supposed to be about you and your hobbies, so your decor should reflect that.

Game Time

You don’t have to be a sports fanatic to want a man cave, plus you won’t always have an event to watch, so a major consideration is game space. This could be a pool table, card table, video game console, arcade game, foosball, etc. Having an area dedicated to having some competitive fun with friends and family will allow you to have guests over throughout the seasons and give you a chance to bond and catch up with each other.

Jams

Last, it’s not a man cave without music. If you have musical interests, your cave is the perfect spot for guitars, drum kits, and band practice. If playing the part of musician isn’t in your wheelhouse, consider investing in speakers throughout the space. We suggest looking for Bluetooth speakers that can easily be moved throughout the room. This can even allow your guests to contribute to your playlist, depending on the app you use.

In the end, your man cave is all about YOU. It should be an extension of your favorite things to do and a private oasis for when you need to get away. Take the time for yourself and have some fun with it!

Article Source: Realty Executives International

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


5 Tips For Making Your Best Offer

(Published on - 9/19/2021 4:55:31 PM)

In today’s sellers’ market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyer demand. If you’re buying this fall, you’ll want every advantage, especially when you’ve found the home of your dreams.

Below are five things to keep in mind when it’s time to make an offer.

1. Know Your Budget

Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. As Freddie Mac puts it:

“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”

Showing sellers you’re serious can give you a competitive edge. It enables you to act quickly when you’ve found your perfect home.

2. Be Prepared To Move Fast

Speed and the pace of sales are contributing factors to today’s competitive housing market. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the average home is on the market for just 17 days. As the report notes:

“Eighty-nine percent of homes sold in July 2021 were on the market for less than a month.”

When homes are selling fast, staying on top of the market and moving quickly are key. After you’ve worked with your agent to find the home that suits your needs, they’ll help you put together and submit your best offer as soon as possible.

3. A Real Estate Professional Can Lead You to Victory

No matter what the housing market looks like, rely on a trusted real estate advisor. As Freddie Mac says:

“The success of your homebuying journey largely depends on the company you keep. . . . be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.”

Agents are experts in the local real estate market. They have insight into what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller may need can help your offer stand out.

4. Craft a Strong, Fair Offer

In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to the latest Realtors Confidence Index from NAR, 50% of offers are above the list price.

In such a competitive market, emotions and prices can run high. Having an agent to help craft a strong, fair offer is critical in these situations. Your agent can help you understand:

  • The market value of the home
  • Recent sales trends in the area
  • Current buyer demand

5. Understand the Seller’s Needs, but Resist Waiving Certain Contingencies

When crafting an offer, you’ll want to keep both your best interest and the interest of the seller in mind. Your trusted real estate advisor will help you consider which levers you could pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you don’t want to give up, like the home inspection.

Freddie Mac explains:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

In today’s competitive housing market, it’s more important than ever to make a strong offer on a home. Connect with a local real estate professional to make sure your offer rises to the top.

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


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Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.

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(630) 969-8880
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