3 Ways to Boost Your Home’s Value Through Sustainability

If you want to increase your home’s value before listing it, there are three projects you can do that will improve its sustainability and make it more attractive to buyers.

If you are thinking of selling your home, think sustainability.

A new survey by the National Association of Realtors just came out, and it made some remarkable
points. For example, 61% of Realtors said clients are interested in sustainability. Also, a whopping 71%
of Realtors said energy efficiency is valuable in helping sell a home.

So, if you are interested in sustainability and you want to sell your home for a higher price, here are
three projects to consider:

1. Energy-efficient appliances. Energy Star-certified appliances such as fridges, washing machines,
and clothes dryers can be as much as 40% more water efficient and 25% more energy efficient than
standard models. Those numbers go way up if you compare new energy-efficient appliances with
models that are more than a few years old.

Other gadgets throughout your house might also warrant an update. For example, if you have an
old thermostat or an inefficient water heater, then smart new alternatives such as the Nest thermostat
or solar water heaters might also be worth a look.

2. Solar panels. Speaking of solar, homes with solar panels sell 20% faster, according to the National
Renewable Energy Laboratory. Even more impressive, they sell for a whopping 17% more than
comparable homes without solar. And with a range of state and federal incentives still in place, solar
can be a great way to make your home more green and attractive at the same time.

3. Windows, doors, and siding. Renovated windows, doors, and siding typically recoup about 80%
of their cost in terms of higher home value. However, a full suite of energy-efficient windows, doors,
and siding might be worth even more in the current sustainability-minded market. Plus, these projects
increase your home’s curb appeal, making it more likely your home will get more interest from
potential buyers.

Any of these projects can potentially add a lot of value to your home. If you want to discuss which
sustainability projects might make the most sense in your particular case or what kind of sale price
you could achieve, please feel free to give me a call.

If you have any other questions or real estate needs, feel free to call or email me anytime. I would be
happy to help you.

How to Get Pre-Approved for a Mortgage

If you’re buying a home with a mortgage, you absolutely need to get a pre-approval first. Here’s why.

There's no doubt about it. It's a very competitive market today if you are looking to buy a home. Inventory is near record lows, and more and more homebuyers are entering the market. This means you need every advantage to grab that perfect home when you do find it. One no-brainer is to get pre-approved for a mortgage. A pre-approval informs you of how much you can borrow and you will prepare you for future steps. A pre-approval can mean the difference between having your offer accepted or having to watch your dream home go to somebody else in a crazy market like this. In spite of all these good reasons, less than 10% of buyers who get a mortgage get pre-approved by the lender who originated the loan. In other words, you can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house.
 

A pre-approval definitely gives you a leg up on the competition.

Here are a few things that you will need: 1. Proof of income. At a minimum, lenders will want to see pay stubs from the past 30 days showing your year-to-date income, two years of federal tax returns, and two years of W2 forms from your employer. 2. Proof of assets. You will need to present statements from your checking, savings, or investment accounts to prove that you have funds for the down payment and closing costs. 3. Good credit. Most lenders reserve the best rates for homebuyers with a credit score of 740 or above. You can still qualify for a mortgage with a lower credit score, but a good lender will also recommend ways that you can improve your credit and qualify for a better loan. These are the biggest and most common things you will need to get pre-approved, though your lender might want to see some other documents as well. Once you are pre-approved, the buying process will be faster, more convenient, and less stressful. Most importantly, it will make it more likely that your offer for that perfect home gets accepted. If you have any questions for me or need any additional assistance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Tapping Into Your Home’s Equity

Many homeowners are tapping into their home’s equity. Here’s why.

Do you notice that pile of cash you're sitting on right now? 

I'm not joking. 42 million homeowners with mortgages have equity in their home right now.

When added up, tappable home equity recently reached $5.5 trillion. That's about $3 trillion more than when the housing market bottomed out in 2012. "Tappable equity" here is defined as the amount a homeowner could borrow before they hit 80% of debt to value.

Not surprisingly, many homeowners are looking to tap into these hidden reserves. As just one sign of this, mortgage applications are up 4.1% this January over last year. That's mostly been driven by mortgage refinances, as homeowners are looking to take advantage of low (but increasing) rates to take out some of that equity as cash.

Another option to a mortgage refinance is a home equity line of credit (HELOC), a kind of checking account on your home. While HELOCs have been growing in popularity, they've hit a slight snag recently because the new tax bill eliminates the deductions for interest paid on such lines of credit. 

Many homeowners are tapping into their equity now.

What are homeowners who tap into their equity actually doing with the extra cash? Most people are spending it on making their homes even more valuable. According to one survey, 80% of borrowers would consider using that cash to renovate their home. 

However, other homeowners are using their home equity to cover education expenses, to pay down other debt, or simply for investing, whether in stocks, real estate, or even cryptocurrencies.

So should you tap into your home equity?


I can't say either yes or no. It’s something you’ll have to decide on your own. However, if you have any questions or would like us to take a look at your specific situation to see what your best move is, we would be glad to help. Don’t hesitate to give me a call or send me an email any time. 

5 Ways to Invest in Real Estate

Real estate investing is on the rise. Here are five different ways you can get involved.

Investing in real estate is no longer restricted to the super wealthy. According to a recent survey, real estate investors now make up 15% of the population. That translates to almost 50 million individuals who invest in at least one property other than their primary residence. 

In fact, 89% of U.S. investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation that come with investing in multiple properties.

Real estate investing is on the rise. Here are five different ways you can get involved.

Are you curious about investing in real estate? If so, here are five different ways you can get started:

1. Buy and rent
This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this kind of investing because rental rates are on the rise (8% since last year) but the downside of this investing approach is the time and effort needed to manage and maintain your investment.

2. Buy and sell
Also known as home flipping, this involves buying a property and reselling it soon after for a profit. Home flipping has offered a record-breaking 49% return in 2016. 

3. Real estate investment groups
Real estate investment groups are organizations that buy a set of properties and then sell them to individual investors.The main benefit of this approach is that you typically do not need to act as the landlord because the investment group handles property management for you (for a fee of course).

4. Crowdfunding sites
Recently, there's been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees which can eat into your profits. 

5. REITs
Real estate investment trusts (REITs) are like mutual funds for real estate.They typically pay high dividends. However, they also do not offer all of the typical benefits of investing in real estate, such as increased leverage and tax benefits. 

Each of these investing approaches offers a tradeoff between possible profits, risks, and costs. The one constant is that you can minimize your risks with due diligence and by consulting with an experienced real estate professional.

If you have any questions for us or you’re interested in investing in real estate yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

3 Things Every First-Time Homebuyer Should Know

Today I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period.

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment. That’s why I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period:

1. Know what you can afford

Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees. 

Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt. 

2. Choose your lender wisely

Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you. 

But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust.

3. Don't overlook the details

There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret. 

An inspection will cost about $300, but it can save you thousands.

A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out.

The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home.

If you need more advice or you are ready to start looking for a home, get in touch with me. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.