by Jonathan Trout

original article: https://www.consumeraffairs.com/homeowners/home-remodel-value-increase.html

Whether you’re selling or staying, these home remodels will pay off

If you can get past the blood, sweat and tears often associated with taking on a home renovation, you’ll reap the benefits for years to come.

Whether you’re staying or selling, a home renovation not only increases your home’s value; it also makes living there that much sweeter. But which renovations pay off the most in the long run? And which ones are the most appealing to homebuyers?

Check out these renovation ideas that will net you some of the biggest returns.

Remodeling idea 1: Add a deck

Adding a wooden deck can get you a significant return on the installation costs when you’re ready to sell. Some homeowners can get as much as a 106 percent return on investment (ROI) after adding a deck, according to the National Association of Realtors.

Even if you’re not selling, a deck provides a great outdoor area to entertain friends and family. It gives you more usable space for grilling in the summer months or hosting backyard parties.

If you have space for one, multilevel decks are a popular way to maximize your backyard. They let you dedicate different deck levels to different functions: Picture a hot tub area, an outdoor kitchen and an entertaining seating area, for example.

Homeowners spend anywhere from $4,073–$9,941 on a deck for their home, with an average of $6,950, according to HomeAdvisor.

Remodeling idea 2: Paint the exterior

It might not be a major home renovation project, but painting your home’s exterior can increase its value by boosting its curb appeal. Curb appeal is important enough to buyers that 96 percent of realtors recommend that sellers update their home exteriors for curb appeal before they put their houses on the market. Adding a fresh coat of quality paint to your siding also protects it from the elements and gives it a clean look.

If you’re painting for resale, look for shades that will attract the broadest range of buyers. Something as simple as painting your front door a different color can make your house pop and attract a buyer. If you have a historic home, neutrals or deep blue-grays are strong choices for matching the classic look of the home.

HomeAdvisor lists the estimated cost of painting the exterior of your home based on square footage:

• The cost to paint a 500–1,500 square foot home is $1,000–$3,000.
• The cost to paint a 1,500–3,000 square foot home is $3,400–$4,500.
• The cost to paint a 3,000–6,000 square foot home is $4,500–$6,000+.

Remodeling idea 3: Install skylights

An indoor home renovation can improve your life while increasing your home’s value. For instance, natural light is a big selling point for homebuyers. Adding Energy Star-qualified, no-leak skylights can increase your home’s efficiency and appeal to potential buyers. As an added benefit, natural light does wonders for your mood and your energy bill.

If you’re looking to let in some fresh air, solar powered fresh-air skylights improve indoor air quality and air flow. They are battery operated, charged by solar power, to automatically open and close the skylights. They have a built-in rain sensor which shuts the skylights automatically when rain is detected. Add solar-powered blinds and you’ll see a 45 percent boost in your home’s energy performance rating.

Here’s another perk: Solar powered skylights, blinds and any installation costs are eligible for a 30 percent federal tax credit. Under the Emergency Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009, “solar electric property” expenditures are eligible for a tax credit through 2021.

If you get solar powered skylights installed, you should:

• Keep your receipts for total price paid (product and installation).
• Fill out IRS tax form 5695 and submit it with your taxes.
• Enter the tax credit on form 5695 on your 1040 form.

According to HomeAdvisor, the average homeowner pays around $1,500 to install solar skylights, with most people spending between $907 and $2,000.

Remodeling idea 4: Upgrade your kitchen

Kitchen renovation projects, such as upgrading appliances and countertops, increase your home’s value significantly and keep it modern. If you aren’t ready for a full remodel, little upgrades such as replacing old cabinet hardware or switching out the faucet and lighting fixtures are inexpensive and still add value.

Here’s what you should expect to spend on a renovation for the most-used areas of your kitchen, according to HomeAdvisor.

• Countertops: Stone countertops (quartz, granite) cost around $4,000–$7,000. Concrete countertops are a little less expensive at $2,600–$5,300.
• Cabinets: Refinished cabinets will set you back anywhere from $1,400–$3,500. Refaced cabinets will cost you $4,500–$9,100.
• Appliances: Energy Star appliances like dishwashers, refrigerators and freezers can cost as little as $200 and as much as $3,500.
• Flooring: Of course the total will depend on your kitchen’s square footage, but expect to pay around $1,300 for ceramic tile and $1,400 for stone.

Bottom line

A home renovation is a win-win situation. You’ll increase the value of your home and make it more appealing to homebuyers when you’re ready to sell. If you’re not ready to sell just yet, a home renovation can make your home more functional and comfortable for you and your family.

by: Valencia Higuera 

original article: https://themortgagereports.com/68062/8-things-to-do-now-to-prepare-to-buy-a-house

Preparation is key in today’s housing market

Buying a home is a huge accomplishment, and an opportunity to put down roots and build equity.

But with national inventory down almost 30%, the housing market has become more competitive.

That’s especially true when it comes to mid-priced, affordable houses.

So how do you get ahead in a hot market? The key is preparation.

The sooner you start preparing to buy a house, the easier it’ll be to beat the competition.

But even if you’re already house hunting, it’s not too late to take some of these steps and improve your homebuying prospects.

How to prepare to buy a house if you’re in the early stages

If you’re in the early stages of preparing to buy a house, you have a leg up.

You have extra time to get ahead of your credit, debt, and savings — which means you’ll have a bigger home buying budget and lower mortgage rate when you’re ready to buy.

Here are four steps to help you prepare if you’re a ways out from buying a house:

1. Check your credit

Once you decide to buy a home, the first thing you’ll need to do is check your credit. This involves getting your credit report from each of the three bureaus (Experian, TransUnion, and Equifax), and pulling your credit score.

Your credit determines whether you’re eligible for a mortgage, and it influences your mortgage rate. The higher your score, the lower your rate.

Most mortgage programs require a minimum credit score between 580 and 620.

Ideally, you should check your credit at least six to 12 months before applying for a mortgage. This allows time to improve a low personal score, if necessary.

You should also check your report for accuracy and dispute any errors, especially negative errors that decrease your score.

To get your credit file, contact each of the three bureaus separately, or order all three copies from AnnualCreditReport.com. Each year you’re entitled to one free report from each of the bureaus.

2. Figure out your DTI

Your debt-to-income (DTI) ratio is the percent of your monthly gross income that goes toward debt repayment. Mortgage lenders use this percentage to gauge affordability.

Typically, lenders prefer a DTI ratio that’s no higher than 36% to 43%, depending on the mortgage program.

For example:

• If you have a gross monthly income of $4,000
• Your monthly debt payments (including a future mortgage payment) shouldn’t exceed $1,720
• Your DTI is 43% ($1,720 / $4,000 = 0.43)

Some mortgage lenders allow a higher DTI, but only when a borrower has “compensating factors” such as a high credit score or a large cash reserve.

To improve your DTI ratio, pay off as much debt as possible before applying for a mortgage. This includes credit cards, auto loans, student loans, and other loans.

You don’t have to be debt-free to purchase a home, but less debt can increase purchasing power.

3. Save money

Today, the majority of mortgage programs require a down payment. This amount ranges from a minimum 3% to 5% for a conventional loan, and a minimum 3.5% for an FHA home loan.

So if you pay $200,000 for a house, you’ll need at least $6,000 to $10,000 as a down payment.

A down payment isn’t required with a VA loan or a USDA loan.

Keep in mind, too, if you purchase with less than a 20% down payment, you’ll likely pay mortgage insurance. This insurance protects your lender in the event of default.

You’re also responsible for closing costs — which are roughly 2% to 5% of the loan amount (or $4,000-$10,000 on a $200K loan).

If you’re having trouble saving for a down payment, it’s possible to use gift funds or down payment assistance to help you qualify.

When applying for a mortgage loan, your lender will ask for copies of your bank statements to confirm you have enough in reserves for your down payment and closing costs.

If you don’t have enough cash, some mortgage programs allow borrowers to use gift funds to cover all or a percentage of their mortgage-related expenses.

There are also multiple down payment assistance programs (DPAs) in every state. These offer grants or loans — often, forgivable loans — to qualified homebuyers who need help with their down payments.

So if you need a little extra help with the out-of-pocket costs, DPA is definitely worth looking into.See if you qualify for a home loan. Start here (Aug 5th, 2020)

4. Determine your budget

Before meeting with a mortgage lender, use an online mortgage calculator to estimate affordability.

Once you know what you’re likely to afford, you can then estimate how much to save for your down payment and closing costs.

For example, if a calculator says you’re likely to afford a $250,000 home, aim to save a minimum $12,500 for your down payment, and perhaps another $5,000 to $7,500 for closing costs.

• Estimated purchase price: $250,000
• 5% down payment (typical for a conventional loan): $12,500
• Estimated closing costs (about 3% of loan amount): $7,500
• Minimum amount to save: $20,000

Mortgage calculators vary. Some estimate your monthly payment based on the home price, down payment amount, interest rate, loan term, and other monthly mortgage expenses like homeowner’s insurance and property taxes.

Other calculators, however, estimate affordability using information you provide about your income and current debt payments.

But remember that this is only an estimation. You’ll still need to contact a mortgage lender to learn how much you really qualify for.Get a custom loan estimate (Aug 5th, 2020)

How to prepare if you’re ready to buy a house now

These are steps everyone can and should take before buying a house.

But even if you found your dream home out of the blue, and you feel rushed to buy, a little preparation will position you to get the best financing available and make a competitive offer.

Here’s what to do.

1. Research loan programs

Even though your mortgage lender will discuss different home loan solutions, do your own research before meeting with the bank.

Once you’re ready to buy, the process is going to move fast. It can be difficult to digest everything your lender says — and you might not feel like you have time to explore financing options.

Once you’re ready to buy, things move fast. You might not feel you have time to explore all your financing options.

If you settle for the first loan you’re offered, you might miss out on lower rates or a more affordable loan program.

So take your time and educate yourself on different mortgage products. Think about what you really want in a mortgage. Is it:

• The lowest down payment?
• The lowest possible monthly payment?
• Avoiding mortgage insurance?
• Paying off your loan in the shortest time possible?

All these things are possible. But a loan officer can only help you find the right match if you know what your priorities are.

Knowledge is your best weapon to make an informed decision and choose the best loan for your situation.

2. Get pre-qualified/pre-approved

A mortgage pre-qualification and mortgage pre-approval can jump-start the buying process. But while both steps sound similar, they’re quite different.

A pre-qualification is a preliminary step where you provide the mortgage lender with basic information about your financial situation via an online form. The lender doesn’t verify this information, but uses it to determine whether you might qualify for financing.

A pre-approval, on the other hand, involves submitting a mortgage application and providing your lender with supporting documentation. This includes tax returns, paycheck stubs, W2s, financial statements, and a credit check.

A pre-approval is the most important step before house-hunting… Some Realtors and sellers will only work with pre-approved buyers.

The underwriter reviews this information and determines how much you can afford to spend on a property.

A pre-approval doesn’t guarantee financing, but it’s a lender’s way of saying they will likely approve you, provided you meet other loan conditions.

A pre-approval is the most important step before house-hunting.

You’ll know what you can afford before searching for a home — plus some Realtors and sellers will only work with pre-approved buyers.

3. Find a real estate agent

Buying a home can be a complicated, intimidating process, so you’ll need a professional on your side to answer questions and look out for your best interests.

Don’t rely on the seller’s agent to provide advice and guidance. It’s their job to advise their client, not you.

To find a good real estate agent, get recommendations from friends and family. You should also read online reviews, and interview two or three agents before making a final decision.

4. Be ready to pay an earnest money deposit

Make sure you have liquid cash for your earnest money deposit. Once you find a property, you’ll need to submit an earnest money check with your offer. This is good faith money that says, “I’m a serious buyer.”

Earnest money deposits vary but typically range from 1% to 2% of the purchase price — usually a minimum of $500 to $1,000.

The seller doesn’t pocket the money, though. Funds are held in an escrow account, and either returned to you at closing or applied to your closing costs and/or down payment.

Home buying moves fast, so don’t rush your preparation

Buying a house is a huge decision, so it’s important that you don’t rush.

Some eager buyers act too quickly and end up skipping vital steps such as a home inspection and comparison shopping.

In a worst-case scenario, you could end up with a fixer-upper when you thought you were buying a turn-key home, or end up spending thousands extra in mortgage interest.

On the flip side, a little savvy can save you tens of thousands over your mortgage term and even boost your home buying budget.

By Heather Levin

original article: https://www.moneycrashers.com/plan-luxury-staycation-home-ideas/

Stop and think about the last family vacation you took. Chances are, it was more expensive than you planned, and you arrived home feeling spent in more ways than one.

According to research cited by Forbes, a single family vacation costs over $4,500 – and that’s just for an average vacation. According to TIME, if you decide to splurge and take your family of four on an iconic vacation to Walt Disney World for four days, then you can expect to spend around $6,300.

In other words, vacations can get expensive. Yes, they’re fun, and yes, you can make some great memories that your kids will cherish forever. However, you don’t have to break the bank to do it. What if you take a portion of what you would typically spend on a week-long vacation and plan a luxury staycation instead? Let’s take a look at how you can design a luxury vacation, at home, on a budget.

Benefits of a Staycation

You can save a lot of money staying home for vacation. According to a Forbes report, most Americans spend 10% of their annual income on vacations, and a quarter of respondents said they spend 15% or more.

Spending this much on vacations is fine – if you can afford it. The problem is that most Americans can’t. According to research cited by Reuters, 74% of Americans go into debt to pay for a vacation, putting an average of $1,100 on credit cards. This debt piles up mainly because most people don’t prepare in advance; CNBC reports that 55% of Americans admit they don’t set aside money in their monthly budget for vacation.

There are also plenty of people who don’t take a break all year. According to a poll conducted by The Associated Press-NORC Center for Public Affairs Research, almost half of Americans won’t take a vacation at all, merely because they can’t afford it. Staycations have grown in popularity in recent years because they’re the only type of vacation most Americans can afford. But that’s not the only reason for a staycation.

If you plan it right, a week at home can feel far more relaxing than a rushed, expensive trip in an unfamiliar place. If you’ve ever arrived home thinking, “I need a vacation from my vacation,” then you can understand.

Staycations can also give you quality time to reconnect with your family. Instead of being distracted by an endless array of “must-do” activities during a typical vacation, you can slow down and choose one quality activity per day. You can spend time with your kids in the comfort of your hometown, and you don’t have to stress over packing and unpacking.

Avoid the Staycation Trap

The problem that many families run into with a staycation is that the parents usually end up spending too much time doing chores and housework during the week. It can also be harder to disconnect from work.

It’s easy to be tempted to spend the entire vacation doing chores, catching up on home projects or lingering renovations, or running errands. But your kids will quickly get bored, and it won’t feel like a vacation at all. If you want to enjoy your staycation and spend quality time with your family, make sure you don’t fall into the “chore trap.”

How to Plan a Luxury Staycation

Spending a week vacationing at home can be a real treat if you do it right. Here are some ways you can make it work for your family.

1. Look at Your Budget

The most significant benefit of a staycation is the money you’ll save. But just because you’re not spending $4,000 on a family vacation doesn’t mean you shouldn’t spend anything. In fact, when you’re staycationing, some strategic spending can make a big difference.

Start by looking at what you spent, on average, for your last few vacations. Tally everything up: airfare or other travel costs, hotels, restaurants, dining out, souvenirs, and entertainment. If you’re unsure about costs, that means it’s time you set up a budget. We recommend using Personal Capital because they will give you a full 360-degree view of your finances.

Now, spend some time thinking about how much you can spend on your staycation. What percentage of what you usually spend on vacation are you comfortable spending on a staycation?

When you have a total that feels good for you, write it down. After you figure out your staycation allowance, your next step is to plan how you’re going to spend it.

2. Identify What “Luxury” Means to You

Stop and think about how you define “luxury” at home. Defining your ideas might take a few minutes because, unless you’re a celebrity millionaire, you don’t equate “luxury” with “home” at all. Home is home and luxury is somewhere else. Instead, ask yourself what small steps you could take to make your home and your life feel more relaxed and luxurious for a week.

For example, would you feel luxurious sleeping on heavenly sheets while wearing some decadent silk pajamas? Or would eating out at a new restaurant every night feel more luxurious to you? Everyone has a different definition of what luxury means, so it’s important to think about what it means to you.

3. Schedule Some Luxury Services

You can also think of luxury in terms of not having to do the household chores you dread. What do you loathe doing most? Which tasks or errands would be luxurious to give up or delegate for a week? Make a list of the chores you really can’t stand doing. Your goal now is to use some of your staycation allowance on luxury services you’d never splurge on otherwise. To get you thinking, consider some of the following ideas.

Hire a Chef

If you want to take a break from cooking, consider hiring a personal chef for a week. A personal chef will do all the meal planning, shopping, cooking, and cleaning up. According to Angie’s List, some chefs charge per plate (around $20 to $30), while others charge by the hour (typically $30 to $40). Most chefs can cook an entire week’s worth of meals in one or two days.

If your hands shake with excitement at the thought of handing over family meal planning and prep for a week, this can be a worthwhile splurge. To find a personal chef in your area, visit HireAChef.com, which is run by the United States Personal Chef Association. If you live near a culinary school, you might be able to hire a student chef for a fraction of the cost; you’ll still get great meals cooked by someone else, and they’ll get some much-needed experience and perhaps a testimonial from you.

You could also consider using meal planning and delivery services, such as Blue Apron or Freshly. These companies do the meal planning, shopping, and prep work for you and ship everything you need for each meal right to your door. Although you’re still responsible for cooking and cleanup, so it’s not quite as luxurious as a personal chef, it is much cheaper. Most meal delivery services cost around $4.99 per plate, but you can often find deals if you look for coupon codes online.

Hire Housecleaners

Doesn’t it feel great to start a vacation in a squeaky clean vacation home? In the same way, a staycation is much better in a clean house.

Finding a housecleaning service to deep clean your home at the start of your staycation is another luxury that can be well worth the splurge. Not only do you get a break from the tedium of everyday household chores, but starting your time off in a spotlessly clean house that you didn’t clean can relieve stress immensely.

Do your research before you decide to invest in a housecleaner for your staycation. Many housecleaning companies want you to sign a contract for a specific number of weeks or months, and it can be challenging to find a team willing to clean just once. Typically, a first-time deep clean runs $300 to $400, but prices will vary depending on the size of your home and your location. Check Handy.com or HomeAdvisor for reputable services near you.

Hire Out Yardwork

If you can’t stand weeding or cutting the grass, hiring someone else to do these tasks for you while you’re on your staycation can be worth the money. However, this is another service that typically requires a long-term contract, so you’ll have to do some planning to find someone who’s willing to do it once. HomeAdvisor and Handy.com are great places to start; however, you might also find someone on Craigslist who wants to make a few extra bucks for a one-time job.

Send the Kids to Camp

If you have kids, then you need to plan a staycation that’s fun for them too. Consider sending your kids to camp for the week, while you and your spouse or partner get some much-needed rest and alone time at home.

According to Care.com, the average cost for a week-long sleep-away summer camp is $768, plus any additional expenses like food or lodging. These camps can make lasting memories for your children and give them unique experiences such as campfires every night, daily art projects, hiking, camping, and group singalongs.

Sending kids to camp is nothing new; parents have been doing it for centuries. But sending them to camp while you take your vacation at home might be something you haven’t considered. If you, like many others, are experiencing parenting burnout, then sending your kids to a fantastic camp for the week might be the only luxurious splurge you need to feel like you’re on vacation. To find a camp near you, visit SummerCamps.com.

If you can’t afford camp, then plan fun activities for your kids at home to make the week more special.

4. Get Out of Your Comfort Zone

One of the most significant benefits of traveling for vacation is that it exposes you to new people, new sights, and new cultures. Researchers with the University of Vermont, profiled by the BBC, analyzed tweets from people on vacation and found that people’s happiness rose the farther they traveled from home.

You might not be able to take a jet to Thailand’s pristine beaches or eat at an elite sushi bar in Japan. But you can expose yourself to new sights, sounds, and cultures in your city and still feel like you’re taking a luxury vacation. Consider the following ideas:

• Visit a restaurant you’ve never tried before, or find a recipe featuring a different cuisine and make it at home.
• Research the nearest big city. Most large cities have ethnically focused neighborhoods that can make you feel as if you’re in another country. Find out where these neighborhoods are and take a day trip.
• Visit a museum you’ve never been to before. While there, sign up for a tour so that you can immerse yourself more fully in the exhibits.

5. Forget About Time

Many of us have lost track of time while on vacation. Time doesn’t matter as much when you’re walking through a new city, trying a new bistro, or indulging in a day at the spa.

Recreate this feeling at home by putting away all clocks and watches for a few days. Turn off or hide the clock on your phone. You might be surprised by how relaxing this can be.

Another way to forget about time is to stop watching the news while you’re on your staycation. Most of the press is stressful anyway, and it can be surprisingly liberating to go without it for a week. Do the same thing with social media; why not take a break from Facebook and Instagram for the week and see how you feel? You might find that you’re happier and more relaxed when you stop checking your feeds a dozen times a day.

Last, don’t forget about your email. When you leave for vacation, you likely set up an auto-reply to handle messages until you get back, so make sure you do the same for your staycation. Make it a goal not to check your email the entire time you’re “away.”

6. Plan Some Unique Activities

Chances are, there are tons of tourist attractions, parks, or recreation activities in your area that you’ve never tried before. Your staycation week is the perfect time to try something new.

Do some research on local activities and write them all down – yes, all of them. Next, let everyone in your family choose one that they would like to try that week. This is a great way to open everyone up to new experiences and give your kids the opportunity to take control for a day. Ideas might include:

• Going to a local amusement park
• Hiking at the nearest state or national park
• Camping
• Seeing a movie at a drive-in
• Going to the nearest fair
• Going to a local U-Pick farm
• Visiting your local planetarium
• Going kayaking or canoeing
• Visiting a local zoo or aquarium
• Going fishing
• Getting tickets to a Major League Baseball game or concert

7. Splurge at Home

If you splurge on some items for your home, your staycation will feel more luxurious, and the investment will make that feeling last long after the vacation ends. Again, take a look at your budget and decide how much you’d like to spend on home luxuries for your staycation. Here are a few ideas.

Turn Your Bedroom Into a Retreat

If you’ve ever stayed at a luxurious or boutique hotel, then you probably remember the sheets. Yes, those incredibly soft 1,500-thread-count sheets that made you feel like you were sleeping in the clouds. Well, why not buy a set for your bed?

High-thread-count sheets aren’t as expensive as you might think, and they can transform the way your bed feels. To get the best bargain, start shopping around on Amazon; Chateau Home Collection 800-thread-count sheets are $73 for a queen set and have great reviews. This 1,500-thread-count set on Wayfair is only $34 and also has excellent reviews.

When you’re looking at different brands, pay close attention to the details; Egyptian cotton will feel crisper and cooler than microfiber. However, it will be more expensive. Some brands advertise their sheets as “luxury high thread count” but use microfiber to cut costs. Aim for sheets that have a thread count of 600 or more; the higher the thread count, the softer the sheets will feel.

You can also make your bedroom feel more like a luxury hotel with aromatherapy. Before the start of your vacation, buy a good diffuser on Amazon like this one for only $16. Next, decide which essential oils you’d like to experience during the week; lavender will help you relax at night, and eucalyptus can make your home smell like a spa. Consider buying a starter set of oils to try like this set for $11.95.

Last, buy a beautiful bouquet of flowers to keep by your bed, and maybe even splurge on some luxury pajamas for yourself.

Indulge at the Grocery Store

If hiring a personal chef doesn’t interest you or isn’t in your budget, another way to splurge at home is to go a little wild at the grocery store. Find some decadent recipes you’d like to try during the week and invest in top-quality ingredients. Recipes could include anything from filet mignon with mushroom sauce to scallops with a white wine sauce. If you want to cook at home this week, then let yourself experience some luxury food. Some ideas to try include:

• Crown Roast of Lamb with Fresh Herbs
• Celery Root and Mushroom Lasagna 
• Salt Baked Leg of Lamb with Olive Oil Potatoes 

You can also splurge on drinks. Look up some new cocktail recipes and buy everything you need to make them at home. Or, buy a few bottles of wine you’ve been wanting to try. And don’t forget the fancy desserts. You can either buy these from a local bakery or make them at home. Act like you’re actually on vacation and let yourself eat dessert every night after dinner. Your kids will think you’re a hero.

Consider buying a new recipe book for your staycation. One of my favorites is “The Tuscan Sun Cookbook” by Frances and Edward Mayes. I’ve made many of the recipes in this book, and they’re fabulous, especially if you love hearty Italian cuisine. Guisi’s Ragu recipe is posted on the book’s Amazon page and is by far my favorite. Your house will smell heavenly for hours when you make this. Pair it with some crusty bread and a good bottle of wine, and you’ll feel like you’re in Tuscany for the night.

8. Create a Mini-Oasis in Your Backyard

Another option for splurging at home is to create a relaxing oasis in your backyard. Depending on how much of your staycation budget you want to invest, there are several options.

Simple splurges, such as a water fountain, can help your backyard or patio feel more like a getaway. For under $200, you can buy this tipping jugs fountain on Amazon, or for under $36, you can get this bamboo tabletop fountain. Add some outdoor bistro lights like these for $39, a bright patio rug like this one for $149, some inexpensive tea lights, and a colorful container of sunflowers or tropical plants from your local nursery, and you can transform your outdoor space for a few hundred dollars. Spending your cocktail hour in this new “getaway” can be surprisingly relaxing.

If you prefer to spend a more substantial portion of your staycation budget on an outdoor oasis, you might want to invest in new patio furniture. You could also set up an outdoor projector for you and your kids to watch movies under the stars.

Final Word

A staycation can be far more relaxing than taking a vacation somewhere new. After all, you won’t have to deal with the stress of travel, long TSA lines at the airport, finding your way around a new city, or even holiday break-ins.

However, planning is essential for making the most of your staycation. Without a plan, you’ll end up catching up on chores and binge-watching your favorite shows on Netflix. And you can do that anytime, right? Instead, take the time to think about what would make your week at home feel special and relaxing. Research some restaurants you want to try or talk to family and friends you haven’t seen for a while and set a date to get together. Small things like this can feel special when you plan them with intention.

Have you taken a staycation recently? Was it worth it? If not, what would you do differently next time?

by: Amy Dobson | Jul 17, 2020

original article: https://www.forbes.com/sites/amydobson/2020/07/17/mortgage-interest-rates-fall-to-their-lowest-rate-ever-recorded/#7ad418f86c07

The threshold many thought could never be crossed, has been crossed.

The average interest rate for a 30-year mortgage dropped below 3%, as Freddie Mac reported yesterday, settling in at 2.98% for the week that ended July 16th. For a 15 year loan the average rate was 2.58%. Once again interest rates have reached the lowest rates ever recorded in the fifty years that Freddie Mac has been tracking the data.

As expected, the continued decline has had the corresponding increases in demand. Even leading up to last week, when rates were hovering just above the 3% mark, refinance applications saw an increase of 12%, which is 107% higher than they were a year ago, according to a report from the Mortgage Bankers Association. Purchase applications did see a small decrease, of 6%, compared to the week before. But after seeing a 33% surge the week before, it is most likely due to a post-holiday slowdown. Compared to one year ago, purchase applications were 16% higher and it is the eighth consecutive week they have been higher than the same week a year previously.

The demand from buyers was already high before the Covid pandemic slowed down activity, but with such low interest rates even those who were thinking of waiting it out for another year are coming off the sidelines to try and lock in a low rate. Of those purchase applications, only 3% were for an adjustable rate mortgage.

However, Sam Khater, Freddie Mac’s Chief Economist, cautions against becoming overly optimistic saying in the statement, “…the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses.”

The real test will be a few months from now when we have a clearer picture of whether or not businesses and retail sales will return to normal. Could mortgage rates go below 2%?

by: Amy Dobson | July 9, 2020

original article: https://www.forbes.com/sites/amydobson/2020/07/09/mortgage-applications-surge-33-as-interest-rates-continue-record-lows/#2ed807343217

The pause in mortgage applications as the Covid epidemic took hold is looking like a mere blip in the distant past as buyer activity surges, according to the latest weekly data numbers. The Mortgage Bankers Association weekly report shows purchase applications rose 33% compared to this week last year, or 5% compared to the week before. The week included the Fourth of July holiday which shows how strong buyer demand since it increased, even during one of the slowest weeks of the season.

Refinance applications also saw an increase of 111% compared to the same week in 2019. It only saw a slight uptick compared to the week preceding this one, with a .4% increase in applications. However, they still made up 60% of the total applications. This number could continue to decrease since, as the report points out, the past few months have seen strong refinance activity already and it could be a sign the population eligible for refinancing is dwindling in numbers.

It is the record low interest rates driving all this activity. Last week average mortgage rate decreased to 3.26% from 3.39% for a non-jumbo 80% loan-to-value application. For jumbo loans over the $510,400 conforming loan limit interest rates decreased to 3.52% from 3.59%. Now they have decreased yet again, to 3.03%, according to a statement from Freddie Mac today.

Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement, “The average purchase loan size increased to $365,700 – also another high – as borrowers contend with limited supply and higher home prices.”

When I last wrote about the sudden surge in applications, I spoke with several lenders who have fully digital applications processes and were able to continue operating during shelter-in-place orders. They all saw drastic increases during the spring and that trend has continued now into summer. Better.com, for example, has seen a 124% growth in refinancing since Covid began and Guaranteed Rate set yet another company record in June for the most locked volume in a single month of $10.5 billion. This was after setting company records in February with $6.8 billion.

Both companies report there hasn’t been a change in credit worthiness of the buyers applying for a mortgage, but the age of applicants is showing signs of getting lower. According to Sarah Pierce, Head of Sales at Better.com, “Since COVID-19 began, we’ve seen the average homebuyer’s age drop by 3 years to 38 years old. Many homebuyers today and in the months following may be influenced by the stability of homeownership and the comfort of owning a safe space in the chaos.”

by: Bruce McNeilage 

original article: https://thinkrealty.com/going-vertical-dont-let-new-normal-slow-you-down/

Turn on any newscast and one of the phrases you are likely to hear is the “New Normal.” There is an expectation that the COVID-19 crisis has permanently altered just about everything we know to be true and that we should accept our fate. 

I take a slightly different view, especially when it comes to changes in the Single– Family Rental home business. 

The world is always changing. That was true before COVID-19 and it will be true long after we find a vaccine. What was commonplace when I got into the SFR business 15 years ago has evolved over time. For example, building an entire subdivision with just rental homes didn’t exist 15 years ago. Today, it is an emerging trend. 

There is a better way to view the pandemic’s impact. Instead of lazily assuming there is a “New Normal” take a look at how things have changed: 

• Some existing trends have accelerated. For example, video conferencing and working from home were already growing trends pre-virus. Post-virus, working from home and video conferencing growth has exploded.  
• Some things have been altered temporarily; I’m willing to bet that standing six feet apart at the grocery will fade out as soon as there is a vaccine. 
• Some things have barely changed at all. People still need a roof over their head.  

Now, apply that same line of thinking to SFR investing:  

• What’s accelerated? Renting will likely continue to grow, but at a faster rate.  
• What’s temporary? Lenders are pulling back on deals that would have been approved just two months ago.  
• What hasn’t changed? Residential properties seem to be holding their value. 

Economic Challenges Will Drive More People to Rent 

First, let’s take a look at how COVID-19 is likely accelerating the percentage of consumers who will rent. Pre-virus, Millennials were getting older and looking for a home with four walls and a yard. Unfortunately, many Millenials have amassed significant student loan debt. This was already hampering their ability to buy a home and pushing more of the largest generation into rentals. The financial fallout from COVID-19 will put even more stress on personal financial situations and likely will take homeownership out of reach for even more people. Ultimately, this will accelerate the number of people who want — or need — to rent.   

Lenders Always Get More Risk-Averse in Down Times 

Next, why is the pull-back by banks a temporary phenomenon? Most lender strategies swing back and forth like a pendulum. When economic conditions are positive, lenders begin to loosen the reigns and take on more risk. When the economy starts to contract, lenders naturally become more risk averse. With current economic conditions pointing toward a recession, lenders are steering clear of high-risk customers and asking for more money down from even those with pristine credit. We are seeing loans at 70 percent LTV/LTC today, where they were 80 percent LTV/LTC just two months ago. 

This does not constitute a “new normal.” It’s simply a normal reaction by lenders in the face of trying times. As the economy begins its trek back to prosperity, lenders will swing back toward more easily obtained financing.  

Homes Are Still a Good Investment  

Finally, home values have held up nicely in the wake of COVID-19 in many markets across the country. In Detroit, the average sale price was up 8.5 percent from April 2019 to April 2020. In Austin, Texas, the average sale price was up 3.2 percent and in Atlanta the average sale price was up 8.9 percent. 

That’s good news for SFR investors, as their home portfolios are most likely still holding their values. Rent collection fears still exist, but according to the National Association of Residential Property Managers, “Over 60 percent of property managers reported that 91 to 100 percent of their tenants had paid May’s rent in full and on-time.” This means overall rental cashflow is likely still positive for most investors. 

What This Means to the SFR World 

Analyzing each phase of any business against these criteria — What Is Accelerated, What Is Temporary and What Is Unchanged — gives people an objective method for evaluating change. We WILL go through change, pandemic or not.  

Even with all the recent upheaval, SFR investing still makes sense in the long run. The acceleration in the percentage of potential renters creates a ready-made market to help fill homes and build cashflow. Strong home values make SFR a sound long-term investment — even if homes have a slight dip in short-term values, a positive cashflow from rental income will help investors build equity. 

In the short-term, tighter lending strategies will likely keep some investors on the sideline. However, shopping for deals outside of traditional banks at credit unions or smaller community banks could give investors the terms they need to strike a deal. And, of course, some investors still will be willing to take a 70 percent LTC/LTV deal. 

Looking at SFR trends through this lense rather than throwing your hands in the air and accepting something is the “New Normal” shows there is still a tremendous upside. Yes, we are going through some crazy times. But, that doesn’t mean that investors should just roll over. Learn to analyze and manage change and there is still money to be made. 

original article: https://www.swaay.com/7-ways-to-add-value-to-your-home

You might have on several occasions, walked into someone’s place and been like “wow! I wish my house was as beautiful as this”. Well, it might as well be time you stopped wishing and do what you need to do… work on your space! As you continue living in a space, it’s not unusual for it to start looking less appealing as you get so used to it. This is especially the case considering the depreciation factor and how it affects all real properties. As this happens, many homeowners feel the urge to improve their home’s value, whether they need to sell it or not. Simple upgrades can also go a long way in adding comfort and improving one’s lifestyle. Before you think of that mega-dollar overhaul renovation or remodeling project, here are some ways to add value to your home.

1. Keep Up Regular Maintenance and Repairs

The common phrase “prevention is better than cure” not only applies in the healthcare world. It applies right here perfectly. Take a look at it this way: when you have a cracked window and you ignore it since it’s still serving the purpose, one day a heavy wind might change everything. When the window falls apart or breaks, it might cost a fortune to replace, not forgetting the possibility of injuring someone.

On the other hand, a simple leak or clog in your plumbing could easily turn into costly and potentially catastrophic damages if not addressed as soon as possible. This is why the pros at https://allserviceplumbers.com/santa-ana/ advise speaking to an expert about routine plumbing maintenance and repairs as soon as they’re needed. Whether it’s a plumbing emergency or a minor issue such as a clogged drain, it’s best to have an experienced plumber handle the job. Keeping your home’s plumbing, HVAC, roofing, surveillance, and other systems in good condition will always boost its value. Walk around your house regularly, note all the maintenance needed, and have the necessary repairs done to avoid further damage.

2. Paint and Repaint Your House

This is the simplest and affordable, yet underrated home improvement you can do to boost its value. What’s more, you don’t even have to hire a painter to do the job; you can just do it in your free time as long as you keep it neat and smart. It can give your home an attractive new look, so go get the paint, brush, apron and a ladder, kill the boredom and re-paint your house!

3. Convert Your Garage Into Living Space

Lately, this new trend has emerged, where people get some extra living space out of their garages. Especially for homes where security is not an issue, some prefer making use of their roofed garage space and parking their cars outside the house. Too much wisdom there – right? Well, you can convert it into a lobby room or the kind of space you’ve always wished you had in your house. How about a library, bar, or an extra chill spot?

4. Make Your Living Room an Open Plan

Often done during remodeling, this can be achieved in two ways: Demolishing the wall that separates the kitchen from the living room or extending your living room space. In most cases, you’ll have to work with professional remodelers on such a project. The best part is that you can take advantage of this and make a few changes that you may have desired for a while. The professionals will be there to share their pro tips on how your house should be reconstructed. All the same, it’s your space, and your ideas on how you wish the house to be should remain dominant.

5. Decorate Your House

The interior decor is one of the most obvious ways homeowners add value to their homes. Well, it can be a bit taxing, sometimes even costly but worth it eventually. You can choose to replace your doorknobs with the latest design, do floating shelves, install wallpapers, reglaze your cabinets, and add trim, or cover your tiled floor with the latest PVC mats that resemble tiles. You can even add new furniture pieces, change the lighting fixtures, or install new blinds/drapes/curtains… the list of décor ideas is literally endless. Anything that boosts functionality and enhances your home’s aesthetic appeal can add value.

6. Add an Extra Bedroom

When you go looking to buy or rent a house, apart from the kitchen space, you will want to know the number of bedrooms. It’s a major determinant factor when it comes to home value. You can seek a vacant space within your compound and have it established there. If co-joining will be tricky, you can set-up an SQ, which will even boost the value of your house by far.

7. Garden Makeover

There are those people who prefer to have their garden space as their chill spot. No problem! With all the ideas from the internet for free, find one that suits your taste and budget and make your space. Add trees, subdivide it to suit different functions, add structures, create an outdoor living space, and don’t forget to plant grass or get grass carpet.

We can go on and on about it, but the scope of this article only allows for so much. With the above ideas, start working on your space and add value to your home. Save where you can and create the best revamp for your house.

By Julia Falcon

original article: https://www.housingwire.com/articles/the-real-estate-market-heats-up-housing-demand-is-25-above-pre-pandemic-levels/#

Demand for houses continues to skyrocket, according to a report from Redfin CEO Glenn Kelman. Seasonally adjusted demand for houses during the week of June 1 through June 7 was 25% above pre-pandemic levels.

Kelman said that bidding wars have caused listings to move quickly, and sales prices are up 3.1% year over year. The percentage of newly listed homes to accept an offer within 14 days increased from 42% in May to 47% in June.

“Our abiding concern in May was about the number of homes for sale, but that’s improving too,” Kelman said. “After falling to 21% below last year’s level the week of May 25-31, new listings last week continued their recovery; last week’s new listings were 15% below last year’s level.”

One thing to come out of pandemic purchases is 3D tours and video-chat tours, as states placed restrictions on real estate practices while shelter-in-place order are in effect. According to the report, 15% of home tours are happening via video chat, which is 30 times higher than pre-pandemic.

Views of 3D scans skyrocketed on Redfin’s website, up 42% from April to May. According to the report, 25% of new listings in markets like Seattle and Orange County, California include a scan.

by Candyd Mendoza

original article: https://www.mpamag.com/news/home-buyers-unfazed-by-coronavirus-fuel-demand-225299.aspx

With housing supply slowly recovering from the coronavirus outbreak, bidding wars are brewing across the US, driven by high home buying demand.

Bidding wars have become common nationwide as the already tight supply of for-sale homes struggles to meet strong demand. Data from Redfin’s latest report showed that the annual adjusted homebuying demand for the first week of June is 25% higher than it was pre-pandemic in January and February. The spike marked the eighth consecutive week of rising demand.

But what makes bidding wars hot this season is the continuous rise in home price growth – undeterred by COVID-19. Year-over-year growth in asking prices was up 9.9% in the first week of June, compared to 7.9% the prior week and 3.9% in January and February. Annual sales prices also rose from 1.3% in May, when the offers from late March and April were still closing, to 3.1% in June. The share of newly listed homes accepting an offer within 14 days of the debut grew from 42% in May to 47% in June.

Sellers worried about health risks are also responding to increased demand. New listings rebounded from plunging 21% below last year’s level the last week May to 15% below last year’s level the first week of June. If this trend continues, Redfin forecasts sales to strengthen.

“A lot of what I’m listing are not new clients, but people I’ve met with over the past few weeks and months,” said Seattle Redfin Agent David Palmer. “I’ll be bringing on double-digit listings in the month of June and expect the same for July. Those people who were looking to get top dollar and wanted to wait to list until they could get the most buyer attention, they can definitely get that now.”

By Lauren Sieben

original article: https://www.realtor.com/advice/home-improvement/how-to-keep-yourself-and-contractors-safe-during-coronoavirus-pandemic/

What’s a homeowner to do during a pandemic? Whether you started a renovation project before social distancing went into effect or you urgently need a plumber today, you may need to bring contractors into your home at some point.

Fortunately, many contractors and home renovation professionals are continuing to work, including Docia Boylen’s team at Handyman Connection of Golden.

“Don’t panic,” she says. “Our craftsmen want to work, and they want to be safe.”

That said, if you decide to move forward with a renovation or repair, you’ll want to be extra careful—for the safety of both your contractors and yourself.

So what does this mean, exactly? We talked to experts about what you should know before welcoming contractors into your home.

Move it online when you can

Many homeowners halted renovations when the pandemic hit, says Cristina Miguelez, remodeling specialist at Fixr, a marketplace for contractors and homeowners. But “for many, consultations, walk-throughs, and initial meetings are happening online,” she says.

Talk to your contractors and ask if they’ve been using any virtual workarounds for providing estimates, quotes, and design work. A video call could help avoid at least one unnecessary trip inside the house.

Communicate with your contractors

Before you move forward, ask your contractors what precautions they’re taking in light of the pandemic.

Doug King, president of the National Association of the Remodeling Industry and president of King Contracting in St. Petersburg, FL, recommends asking the following questions:

• How do you plan to keep my family safe while you’re working here?
• Does your company have a written policy or procedure for performing work at private residences?
• Who will enforce those policies?

Boylen says her company has also taken extra steps to keep contractors and homeowners safe.

“We got creative with our customers,” she says. “We stopped exchanging paperwork and moved to online quotes and credit card payments. We stopped shaking our customers’ hand to thank them for their business. We implemented processes to check every craftsman before work to ensure they were not feeling poorly or had a fever.”

Your contractors may also want some assurance from you to make sure they’re entering a safe work environment. Be prepared to talk about your own protocol for cleanliness.

“It’s a conversation; you both need to speak to one another and don’t assume,” Miguelez says. “Respect this person coming into your home and try to keep them safe.”

Cover the cleanliness and safety basics

Both you and your contractors should be following CDC guidelines. That includes wearing a mask and washing your hands frequently. Regularly disinfect high-contact surfaces like countertops and doorknobs and make hand sanitizer available at entry points to the house.

And remember: You wouldn’t want a sick worker coming into your home, so don’t let a contractor work in your home if you or someone else in the house is sick.

“Under no circumstances should a contractor or their subcontractors enter a house if there are sick persons in the house or if any of the workers are showing symptoms,” King says.

Leave the house, if possible

“Remodeling is very intrusive and disruptive even without the pandemic,” King says. “If there’s any way at all possible, leave your house while the work is being done.”

If you don’t have anywhere else to go, avoid the work area while contractors are present, and keep any immunocompromised members of the household as far as possible from the worksite.

“Be sure to wash your hands after visiting the work area, even after the workers have left for the day,” King says. “Designate one point of entry to limit contact areas.”

Be patient

Remember that your contractors are doing their best to navigate an unprecedented situation. Be understanding if plans change.

“The craftsman scheduled at your home could have come in contact with someone last week that has let us know they have COVID-19,” Boylen says. “It means we will not send that craftsman to your home, but we may not have another craftsman [available] in order to keep your original appointment.”

You may also find that contractors are booked weeks or months in advance. When shelter-in-place orders started taking effect in March, many homeowners delayed projects, King says, which has created a bottleneck now that projects are ramping back up.

“Contractors have seen the lead times for products like cabinetry, windows, and doors double and triple in some cases, which in turn leads to project delays,” he says.