Austin Real Estate BlogRecently posted or modified blog posts by tag - austinhomeshttps://www.residentrealtyaustin.com/blog/Copyright ResidentRealtyAustin.com2020-01-13T17:11:02-07:00tag:residentrealtyaustin.com,2012-09-20:66302020 Outlook: Real Estate Market Forecast2020 Outlook: Real Estate Market Forecast
We’re in the midst of the longest economic expansion in U.S. history, and economists think there’s still room to grow. A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020.1
Still, given that recessions are a natural (and necessary) part of a business <img src="https://assets.site-static.com/userfiles/1602/image/January_2020_-_MVP_-_Social_Media_Image_B.jpg" width="400" height="210" title="Real Estate Market Forecast" style="margin: 1px; float: right;" />cycle, we know this period of growth will inevitably end. So you may be wondering … how will an eventual recession impact the real estate market?
Many Americans assume a recession would lead to a decline in housing prices like we saw during the Great Recession of 2008. But the real estate market crash we experienced wasn’t typical. In fact, the last recession wasn’t typical at all. It was the worst economic downturn since the Great Depression of the 1930s.
ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that, in the majority of cases, home prices actually went up. Only twice (in 1990 and 2008) did prices decline, and in 1990 it was by less than one percent.2
So what can historical precedent—combined with today’s data—tell us about the future of real estate? Here’s where experts predict the housing market is headed in 2020 and beyond.
HOME PRICES WILL KEEP RISING
Economists predict U.S. housing prices will continue to rise, regardless of a recession. In fact, property data firm CoreLogic forecasts a faster rate of growth for home prices in 2020 than we saw in 2019, with the biggest gains at the lower end of the market.3
Arch MI Chief Economist Ralph DeFranco expects entry-level home prices to increase faster than incomes this year, making it even more difficult for many first-time buyers to afford to enter the market.4
“Low interest rates and a shortage of starter homes will continue to push up prices,” predicts DeFranco. “This is especially the case for lower price points, since builders have tended to focus on more expensive, higher-profit houses and less on replenishing low inventories of entry-level homes.”4
“Real estate is on firm ground with little chance of price declines,” said National Association of Realtors Chief Economist Lawrence Yun. "However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.”5
What does it mean for you? If you have the ability and desire to buy a home now, don’t let a fear of recession or falling prices hold you in limbo. Economists expect home values, as well as rent prices, to continue rising. So you’ll likely pay more the longer you wait.
INVENTORY CONSTRAINTS WILL CONTINUE
According to Redfin, Americans are staying in their homes longer. In 2019, the average homeowner had resided in their home for 13 years, up from just eight years in 2010. That means there are fewer homes available today for those who want to buy.6
It’s possible that an increase in new construction could offer some relief. The National Association of Realtors (NAR) expects single-family housing starts to total one million this year, the highest level since 2007. And NAR Chief Economist Lawrence Yun predicts the average price of new construction will decline slightly as builders shift to building smaller, more affordable homes.7
However, these efforts may not be enough to meet current demand. “Despite improvements to new construction and short waves of sellers, next year will once again fail to bring a solution to the inventory shortage,” predicts Realtor.com Senior Economist George Ratiu. “In 2020, we expect inventory to struggle to grow and could instead reach a historic low level.”8
What does it mean for you? If you’re looking to buy a starter home, be prepared to compete for the best listings. Start your search early, and if you’re up against a deadline (like a new baby), build in plenty of time to find the right home. We can help you assess your options, including new construction and up-and-coming developments.
MORTGAGE RATES WILL REMAIN LOW
Mortgage rates have declined more than a full percentage point since November 2018, when they hit a recent peak of 4.94%.9 The Mortgage Bankers Association predicts rates will remain low, at around 3.7%, through mid-2021.10
While it may not seem significant, on a $200,000 30-year fixed-rate mortgage, that lower rate means buyers could save around $145 on their monthly payment and more than $52,000 over the life of their mortgage. Lower mortgage rates make homeownership more accessible and affordable for buyers.
Although economists expect mortgage rates to stay low, they caution against waiting to act. Economic factors, shifts in supply and demand, or unforeseen impacts of the November election could cause rates to rise unexpectedly. “We recommend borrowers with long-term plans of staying in their homes to lock in a low rate now because there’s no telling how long these low rates will last,” warns Preetam Purohit, a capital markets trader at Embrace Home Loans.11
What does it mean for you? If you’re looking to buy a home, act soon to lock in a historically low mortgage rate. It will minimize your monthly payment and could save you a bundle over the long term. And if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates.
MILLENNIALS WILL DRIVE THE MARKET
Millennials are expected to account for more than half of all mortgages this year, outnumbering Generation X and Baby Boomers combined. It’s not surprising, considering their age and stage of life. In 2020, the largest cohort of millennials will turn 30, and the oldest millennials will turn 39.8
"Family changes tend to drive home-buying decisions," explains Realtor.com Chief Economist Danielle Hale. "Millennials are going to be active in the housing market not just because they're just at the age when they're thinking about becoming first-time home buyers, but they're also in the age range when they're having kids."12
Younger millennials flocked to urban centers that offered easy access to work, shopping, and restaurants. But high prices, lack of square footage, and subpar schools are driving millennials out to the suburbs as they begin to marry and expand their families.
In response, a new model for suburban living has emerged. “Hipsturbias,” or mixed-use communities that bring the live/work/play concept to the suburbs, were recently named one of the top real estate trends for 2020 by the Urban Land Institute.4
What does it mean for you? If you’re a millennial who has been priced out of urban living or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs. And if you’re a homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this leading market segment!
WE’RE HERE TO GUIDE YOU
While national real estate numbers can provide a “big picture” outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.
If you’re considering buying or selling a home in 2020, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.
START PREPARING TODAY
<br /> If you plan to BUY this year:
Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly.
Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you.
Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!
If you plan to SELL this year:
Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property, and it will help us price your home correctly once you’re ready to list.
Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results.
Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage ... and get you one step closer to moving when the time comes!
Sources:
NBC News -<br /> <a href="https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511">https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511</a>
Curbed -<br /> <a href="https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates">https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates</a>
HousingWire -<br /> <a href="https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/">https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/</a>
Forbes -<br /> <a href="https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935">https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935</a>
National Association of Realtors -<br /> <a href="https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in">https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in</a>
Redfin -<br /> <a href="https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/">https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/</a>
HousingWire -<br /> <a href="https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/">https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/</a>
Realtor.com -<br /> <a href="https://www.realtor.com/research/2020-national-housing-forecast/">https://www.realtor.com/research/2020-national-housing-forecast/</a>
YCharts -<br /> <a href="https://ycharts.com/indicators/30_year_mortgage_rate">https://ycharts.com/indicators/30_year_mortgage_rate</a>
MBA Mortgage Market Forecast November 2019 -<br /> <a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary">https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary</a>
Dallas Morning News -<br /> <a href="https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/">https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/</a>
Realtor.com -<br /> <a href="https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/">https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/</a>
2020-01-01T15:04:00-07:002020-01-13T17:11:02-07:00Todd Shermantag:residentrealtyaustin.com,2012-09-20:6454Gifts and Gadgets for Every Room in the HouseAre you searching for new and innovative gift ideas this holiday season? If so, check out our list of the hottest home technology offerings. We’ve selected a few of our favorites for every room in the house.<img src="https://assets.site-static.com/userfiles/1602/image/december.jpg" width="400" height="210" alt="Gifts and Gadgets for the home" style="margin: 1px; float: right;" />
These smart systems and devices add comfort, convenience, and a “cool factor” that will delight your friends and family. So think about who you know that loves the latest gadgets … or add a few of these to your own wish list!
ENTRYWAY
Ensure the safety of your loved ones with these smart security upgrades.
Smart Lighting
Ring, a company best known for its video doorbells, has added smart lights to its series of integrated devices. The <a href="https://shop.ring.com/pages/smart-lighting" target="_blank">Ring Smart Light System</a> includes motion sensors, pathlights, spotlights, and even step lights, which can be turned on and off using voice commands when paired with an Amazon Alexa device. Users may opt to receive a notification when motion is detected on the premises, and—if integrated with Ring security cameras—access a live video stream for an added layer of security. Systems start at $69.99.
Video Doorbell
Video doorbells have become an increasingly popular security enhancement for homes, and for a good reason. Homeowners can detect activity at their front door while away, view visitors via video stream, and communicate without opening the door. Since Ring released its first smart doorbell in 2013, a number of competitors have entered the market. The <a href="https://store.google.com/product/nest_hello_doorbell" target="_blank">Nest Hello Video Doorbell</a> has some unique features—like facial recognition, package detection, and pre-recorded quick responses—that place it near the top of the pack. Retails for $229.
Smart Lock
Smart locks are a great way to ensure your friends and family are never left out in the cold, and the <a href="https://august.com/products/august-smart-lock-pro-connect" target="_blank">August Smart Lock Pro+ Connect</a> is among the most highly rated. It’s one of the easiest models to install because it pairs with an existing deadbolt. The Smart Lock Pro enables a user to lock and unlock their door remotely with an app on their phone. And with the auto-lock/unlock feature, it can be set to open automatically upon approach and relock after entry. Retails for $279.
LIVING ROOM
These fun and functional gifts are perfect for anyone who is big on style—but short on time.
Automated Planter
Caring for household plants is easier than ever with the latest advancements in technology. Perfect for frequent travelers or forgetful friends, the <a href="https://dewplanter.com/" target="_blank">Dewplanter </a>uses moisture in the air to water plants without manual intervention. Now nature lovers can enjoy the beauty and health benefits of houseplants without the hassle. Plus, for each unit sold, the company pledges to plant a tree somewhere it’s needed. Retails for $69.50.
Smart Art
Instead of buying your favorite art lover a single painting, why not give him or her 30,000? With the <a href="https://meural.netgear.com/" target="_blank">Meural Canvas,</a> you can access an extensive collection of artwork from around the world to display digitally in your own home. Meural utilizes proprietary technology to deliver an anti-glare matte display that automatically adjusts to the lighting in the room. Personal artwork and photographs can be showcased, as well. Retails for $445 with annual membership.
Motorized Shades
Motorized window coverings aren’t new, but a lower price point and enhanced features have helped to boost their popularity. The latest <a href="https://www.somfysystems.com/en-us/products/shades-blinds-curtains/motorized-shades" target="_blank">Motorized Shades from Somfy</a> can be preprogrammed to raise or lower at certain times of day or controlled on-demand via a remote, smartphone app, or voice command when paired with Amazon Alexa or Google Home. They can also be set to operate automatically in response to the amount of sunlight or temperature of the room. Contact a dealer for pricing.
KITCHEN
These kitchen gadgets make life a little easier and a lot more enjoyable. They’re perfect for your busiest friends and family members!
Pressure Cooker
Have you jumped on the multi-cooker bandwagon yet? If so, you know how fast and simple these multifunctional appliances make meal preparation. The <a href="https://www.amazon.com/Instant-Pot-Multi-Use-Programmable-Pressure/dp/B00FLYWNYQ" target="_blank">InstantPot Duo</a> is a pressure cooker, sauté pan, steamer, slow cooker, rice cooker, food warmer, and yogurt maker all-in-one. It reduces cooking time and lowers energy consumption. Who wouldn’t love one of these versatile tools? With numerous cookbooks and blogs devoted to InstantPot recipes, the meal options are virtually endless. Retails for $99.95.
Cocktail Machine
Cocktail connoisseurs will appreciate the ease and convenience of the <a href="https://bartesian.com/" target="_blank">Bartesian Premium Cocktail Machine.</a> Listed among “Oprah’s Favorite Things” for 2019, the Bartesian mixes drinks with the touch of a button. Simply fill the canisters with base spirits, choose a cocktail capsule, and the machine does the rest. Now you can mix a margarita, whiskey sour, cosmopolitan, and other favorites as easily as you brew a cup of coffee. Retails for $349.
Smart Refrigerator
Kitchens are often called the “heart of the home,” and a new refrigerator from Samsung aims to be the hub. The <a href="https://www.samsung.com/us/explore/family-hub-refrigerator/overview/" target="_blank">Samsung Family Hub Refrigerator</a> helps busy families stay organized. Grocery shopping becomes a breeze with built-in cameras that allow owners to peek inside their fridge from anywhere. The interactive touchscreen displays pictures, notes, and reminders for family members. And the integrated SmartThings app enables users to control smart devices and appliances from a central point. Base model starts at $3,099.
BEDROOM
Almost nothing beats a good night’s sleep. Help your loved ones wake up refreshed with these smart devices for the bedroom.
Baby Sleep Soother
As any parent knows, when your baby isn’t getting sleep, neither are you. Help everyone in the family catch some z’s with a <a href="https://www.amazon.com/Bubzi-Co-Machine-Woodland-Portable/dp/B06Y5Q5XRB" target="_blank">Bubzi Co Soothing Owl</a>. This cuddly creature plays lullabies while projecting a starry scene on the bedroom wall to calm young children and help them drift off to sleep. And for every purchase, Bubzi Co makes a donation to Postpartum Support International. Retails for $30.95.
Sunrise Alarm Clock
Know someone who hates getting up in the morning? Alarm clocks that utilize light instead of a noisy alarm can provide a more peaceful transition in and out of sleep. The <a href="https://www.usa.philips.com/c-e/smartsleep/connected-sleep-and-wakeup-light.html" target="_blank">Philips SmartSleep Connected Sleep and Wake-Up Light </a>includes customizable sunrise and sunset simulation, guided breathing exercises, and sensors that track room conditions, like temperature, humidity, noise, and light. Retails for $199.95.
Smart Thermostat
Temperature fluctuations during the night can disrupt sleep. The <a href="https://store.google.com/us/product/nest_learning_thermostat_3rd_gen?hl=en-US" target="_blank">Nest Learning Thermostat</a> uses smart technology to track a user’s preferences and build a schedule around them. Homeowners can place one of its integrated sensors in their bedroom to maintain a consistent temperature throughout the night. And Nest thermostats cut energy consumption, so they’ll rest easier knowing they’re saving the planet and money on utility bills . Retails for $249.
BATHROOM
Bathrooms don’t have to be boring. Technology can add flair to the daily routine.
Waterproof Speaker
Music enthusiasts and podcast fans will enjoy streaming their favorites in the shower with a wireless waterproof speaker. The <a href="https://www.ultimateears.com/en-us/wireless-speakers/wonderboom-2.html" target="_blank">Ultimate Ears Wonderboom 2</a> is a mid-priced and versatile option that can go from the bath to the beach. It packs an impressive 13-hour battery life in a small, portable case that’s waterproof, dust-proof, and floatable. Retails for $99.99.
Digital Smart Scale
A scale isn’t an appropriate gift for everyone, but diet and fitness enthusiasts may appreciate the high-tech features available with the <a href="https://www.withings.com/us/en/body-plus" target="_blank">Withings Body+.</a> It tracks weight, body water, and fat, muscle, and bone mass for up to eight users. It can also be set to display local weather and the previous day’s step count. Customized pregnancy and baby modes make this a suitable choice for a growing family, as well. Retails for $99.95.
Vanity TV Mirror
For a truly luxe bathroom addition, consider an integrated vanity television mirror. The <a href="https://www.seura.com/products/tv-mirrors/vanity/" target="_blank">Seura TV Mirror</a> seamlessly incorporates video into a bathroom vanity. It’s vanishing glass technology makes it possible to view the television through a mirror. When turned off, the screen completely disappears. Add lighting or a custom frame to complete the look. Starts at $3,099 for a 19” display.
OUR GIFT TO YOU
Are you considering a permanent technology upgrade for your own home? Give us a call first! Buyer expectations and preferences vary depending on price point, architectural style, and neighborhood. We can help you determine how the enhancement will impact the value of your home before you make the investment.2019-12-02T12:29:00-07:002019-12-02T13:00:06-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:63955 Steps to Finding Your Next Home5 Steps to Finding Your Next Home
Whether you’re a first-time buyer or a seasoned homeowner, shopping for a new home can feel daunting. In fact, 56% of buyers said that “finding the right property” was the most difficult step in the home buying process.1<img src="https://assets.site-static.com/userfiles/1602/image/November_2019_-_MVP_-_LinkedIn_Image_blog.png" width="400" height="228" alt="5 Steps to Finding Your Next Home" style="float: right; margin: 11px;" />
Buying a home is a significant commitment of both time and money. And a home purchase has the power to improve both your current quality of life and your future financial security, so the stakes are high.
Follow these five steps to assess your priorities, streamline your search, and choose your next home with confidence.
STEP 1: Set Your Goals and Priorities
The first step to finding your ideal home is determining WHY you want to move. Do you need more space? Access to better schools? Less maintenance? Or are you tired of throwing money away on rent when you could be building equity? Pinpointing the reasons why you want to move can help you assess your priorities for your home search.
Don’t forget to think about how your circumstances might change over the next few years. Do you expect to switch jobs? Have more children? Get a pet? A good rule of thumb is to choose a house that will meet your family’s needs for at least the next five to seven years.2 Be sure to set your goals accordingly.
STEP 2: Determine Your Budget
Many financial professionals recommend following the “28/36 Rule” to determine how much you can afford to spend on a home. The rule states that you should spend no more than 28% of your gross monthly income on housing expenses (e.g., mortgage, taxes, insurance) and a maximum of 36% of your gross monthly income on your total debt obligations (i.e., housing expenses PLUS any other debt obligations, like car loans, student loans, credit card debt, etc.).3
Of course, the 28/36 rule only provides a rough guideline. Getting pre-qualified or pre-approved for a mortgage BEFORE you begin shopping for homes will give you a much more accurate idea of how much you can borrow. Add your pre-approved mortgage amount to your downpayment to find out your maximum purchasing potential.
STEP 3: Choose a Location
When it comes to real estate, WHERE you choose to buy is just as important as WHAT you choose to buy.
Do you prefer a rural, urban, or suburban setting? How long of a commute are you willing to make? Which neighborhoods feed into your favorite schools? These decisions will impact your day-to-day life while you live in the home.
Another important factor to consider is how the area is likely to appreciate over time. Choosing the right neighborhood can raise the profit potential of your home when it comes time to sell. Look for communities that are well maintained with high home-ownership rates, low crime rates, and access to good schools, desired retail establishments, and top employers.4
STEP 4: Decide Which Features You Need (and Want) in a Home
Start with the basics, like your ideal number of bedrooms, bathrooms, and square footage. Do you prefer a one-story or two-story layout? Do you want a swimming pool?
Keep in mind, you may not find a home with all of your “wants,” or even all of your “needs” … at least not at a price you can afford. The reality is, most of us have to make a few compromises when it comes to buying a home.
Some buyers will opt for a longer commute to get a larger, newer home in the suburbs. Others will sacrifice hardwood floors or an updated kitchen so that their kids can attend their desired school.
If you’re faced with a tough choice about how or what to compromise in your home search, return to STEP 1. What were your original goals and motivations for moving? Reminding yourself of your true priorities can often provide the clarity that you need.
STEP 5: Meet with a Real Estate Agent
A good real estate agent can remove much of the stress and uncertainty from the home search process. From setting goals to securing a loan to selecting the best neighborhood to meet your needs, we will be there to assist you every step of the way.
And no one has more access to home listings, past sales data, or market statistics than a professional agent. We can set up a customized search that alerts you as soon as a new listing you might like goes live. Better yet, we get notified about many of the hottest homes even BEFORE they hit the market.
You might guess that the VIP service we provide is very expensive. Well, the good news is, we can represent you throughout the entire home buying process at NO COST to you. It’s true; the home seller pays a buyer agent’s fee at closing. So you can benefit from our time, experience, and expertise without paying a dime. It’s no wonder 87% of buyers choose to purchase their home with the help of an agent.1
And although we’ve listed it here as STEP 5, the reality is, it’s never too early (or too late) to contact an agent about buying a home. Whether you plan to buy today, next month, or next year, there are steps you can (and should) be taking to prepare for your purchase.
Call us today to schedule a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
Sources:
NAR 2019 Home Buyers & Sellers Generational Trends Report -<br /> <a href="https://www.nar.realtor/sites/default/files/documents/2019-home-buyers-and-sellers-generational-trends-report-08-16-2019.pdf">https://www.nar.realtor/sites/default/files/documents/2019-home-buyers-and-sellers-generational-trends-report-08-16-2019.pdf</a>
Architectural Digest -<br /> <a href="https://www.architecturaldigest.com/story/this-is-how-long-you-should-live-in-your-house-before-selling-it">https://www.architecturaldigest.com/story/this-is-how-long-you-should-live-in-your-house-before-selling-it</a>
Investopedia -<br /> <a href="https://www.investopedia.com/terms/t/twenty-eight-thirty-six-rule.asp">https://www.investopedia.com/terms/t/twenty-eight-thirty-six-rule.asp</a>
Money Talks News -<br /> <a href="https://www.moneytalksnews.com/20-clues-youre-buying-home-the-right-neighborhood/">https://www.moneytalksnews.com/20-clues-youre-buying-home-the-right-neighborhood/</a>
2019-11-01T16:41:00-07:002019-11-06T06:26:37-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:62998 Real Estate Documents You Should Keep - and Why!Throughout the entirety of the home-buying process, you will encounter too many documents to count. And, while it may be tempting to keep all of them, it isn’t necessary. How do you know which documents to keep and which you can throw away? Here are eight real estate documents you should absolutely hold on to and why: <img src="https://assets.site-static.com/userfiles/1602/image/file.JPG" width="400" height="271" alt="8 Real Estate Documents You Should Keep - and Why!" title="8 Real Estate Documents You Should Keep - and Why!" style="float: right; margin: 11px;" />
Buyer’s agent agreement
When you start your home search, you choose a real estate agent and sign a buyer’s agent agreement – a contract between you and the brokerage. This contract outlines the details of your relationship – who pays the commission, the duration of the contract, terms for terminating, etc. Always hold on to this contract just in case you have an issue with your agent before the transaction closes.
Purchase agreement
When it comes time to buy a home, you'll sign a purchase agreement – a contract signed by both you and seller confirming the agreed upon purchase price, closing date, etc. Hold on to this document as it contains the legal ramifications in the case you or seller fails to fulfill the duties outlined in the agreement.
Addenda, amendments or riders
The documents above either alter or amend the terms of your purchase agreement. As they change the terms of the original document, they are worth holding onto – especially in the case the seller didn’t complete repairs that were outlined in an addendum.
Seller disclosures
Sellers are required to disclose certain problems with the home that could affect its value – lead-based paint, pest infestations, renovations completed without a permit, etc. Keep these documents on hand in the event major problems come up with your new home after you move in – they could be the basis for a future lawsuit.
Home inspection report
During the buying process, you will complete a home inspection. At the conclusion of this home inspection, the inspector will hand you a detailed report outlining the condition of the home and any potential problems. File this documents away just in case you need to make repairs to the property in the future.
Closing disclosure
The closing disclosure is a document given to a borrower (at least three business days before settlement) from their mortgage lender outlining the details of their loan: loan term, loan type, interest rate, closing costs, etc. Keep this document on hand for future reference when filing your taxes.
Title insurance policy
Title insurance protects you against any competing claims to the home: liens against the property or fraudulent signatures. You should keep this document just in case another party (a previous owner) tries to claim the property.
Property deed
When the house officially becomes yours, you will receive the deed – a document that confirms ownership of the home to you. Typically mailed to you after the title transfer documents are recorded at your county’s public records office, this document is the only way to show someone you are the legal owner of the home.
Do you have any questions about any of these documents? Are you interested in buying a home in the Austin area? Give our team a call. We are always available to help you.
2019-10-28T18:05:00-07:002019-11-03T07:58:54-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6313How Your Kitchen Can Attract Buyers<img src="https://assets.site-static.com/userfiles/1602/image/Resident_Realty_How_Your_Kitchen_Can_Attract_Buyers_Austin_Real_Estate_Tips.jpg" width="400" height="267" alt="How Your Kitchen Can Attract Buyers" title="How Your Kitchen Can Attract Buyers" style="float: right; margin: 11px;" />Just as the kitchen is the hub for many families, it’s also one area of the home that prospective buyers are the most excited to see. If they can’t see themselves in the kitchen, preparing dinners, making coffee, and getting holiday dishes together for large feasts, you may have difficulty selling your home. So, what can you do to make your kitchen seem less like a diamond in the rough and more like a one of a kind gem?
1. Get rid of trash and dirty dishes
This may seem like an obvious one, but it’s smart to take out the kitchen trash before heading out of your home and before a showing happens in order to make sure no unpleasant smells linger. Give your guests a clear sink to inspect if they can imagine doing the dishes there.
2. No signs of pets
As much as you love your dogs, cats, birds, and all the other animals in the world, potential buyers may not share that same enthusiasm for them. It can be a major turn off to walk into a kitchen to see bird cages, dog bowls, or a litterbox. Don’t give your guests any reason to draw their attention away from the overall inviting atmosphere of your kitchen.
3. Create as much space as you can
Buyers will be seriously considering the amount of counter space, cabinet space, and pantries, so be sure to have those areas as clear as possible. Keep the necessities out, but get rid of the extra clutter.
4. Clean appliances
Having a clean kitchen equates to having a clean home that has been well taken care of throughout the years in a buyer’s mind. Expect people to open up your stove, microwave, refrigerator, etc. With that said, you can’t just do a surface cleaning. You’ll want to take it a step further to make sure everything sparkles and that your refrigerator and freezer are organized and don’t contain anything that will gross out buyers.
5. Get rid of sign of pests
Bugs or rodents in the kitchen can be signs of major issues throughout the home and signal to potential buyers that they will face a lot of costs and time spent ridding the property of pests. Simply having rodent traps under the sink and bug spray laying around can make buyers turn away.
Simply taking a few extra steps to make your kitchen stand out can have a huge impact on the impression your home makes to buyers. You want to have guests craving to make breakfast for the family on Christmas morning in your kitchen. If you need any other tips on how to get your home sold, give our team a call! We’re always happy to give you some advice. 2019-10-22T18:41:00-07:002019-11-03T05:50:35-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6288Reasons Fall is the Best Time to Buy a HomeWhat time of the year is the best for real estate? We're sure many of you said, "Spring." However, that might not be 100 percent accurate. While the spring market is the ideal time to sell your home…it turns out; it may not be the best time to buy a house. Why do we say this? Well, with less competition and lower home prices, fall might just be the season frontrunner for home buyers. What reasons attribute to fall being the best time to buy a home? Let's take a look at the top seven:<img src="https://assets.site-static.com/userfiles/1602/image/fall.JPG" width="400" height="267" alt="Reasons Fall is the Best Time to Buy a Home" title="Reasons Fall is the Best Time to Buy a Home" style="float: right; margin: 11px;" />
Lower home prices
Did you know October is the best time to snag a great deal on a new home? According to RealtyTrac's analysis of more than 32 million home sales in more than 15 years, October buyers paid 2.6 percent BELOW the estimated market value at the time for their homes. While 2.6 percent doesn't seem like much, it is more than you think! For example, if you're looking for a home worth $350,000 – 2.6 percent is a $9,100 discount. That discount can help you pay for any number of new homeowner expenses: closing costs, homeowner’s insurance, monthly mortgage payments, moving expenses and more. If you can help it, wait until fall to begin shopping for a bargain deal!
Less competition
If they can help it, most home sellers will wait until spring to list their home. Why? Simple. It is the best time to get the highest market value for your home. With an increased number of homes on the market, there is also an increased number of buyers perusing. To avoid high competition for homes, avoid searching during this time. Instead, be patient and wait until the fall to buy a home. Less competition means more time to consider a home before putting in an offer and a lower likelihood of competing offers.
Worn-out home sellers
If a seller has their home on the market in the fall, it's usually because they don't have any other option. How does this benefit you as a homebuyer? As they have their home on the market out of necessity, they are probably in a position where they NEED to sell their home and are open to negotiating, resulting in a potentially better deal for you.
Did you know that sellers price their home higher in the spring? It’s true. While some do sell, others remain on the market for one reason: they are priced above fair market value. As these homes often receive little attention in the spring, they will sometimes remain on the market until the fall. If they do, chances are the sellers are getting impatient and looking to sell their home fast – resulting in a better deal for you!
Holidays are around the corner
The holiday season is right around the corner. As a home seller, there is nothing worse than being in the middle of selling your home during Thanksgiving and Christmas. Why? Because instead of enjoying the holiday with friends and family, you have to accommodate home showings whenever a potential buyer would like to view your home. These home showings have the possibility of ruining holiday plans. If a home seller wants to get into a new home before the holiday season, they will likely be extremely motivated to get out of their current home FAST – possibly resulting in a great deal for you! Use this pre-holiday window (October) as an opportunity to find a new home for a great deal.
Year-end tax credits
While you don’t buy a home for the tax benefits, it is a nice incentive. If you close a home at the end of the fiscal year, you might reap the benefits of some nice tax deductions: closing costs, property tax and mortgage interest.
Real estate agent has more time
Fewer buyers and sellers on the market allow your REALTOR® to dedicate more time to help you locate a home. More time with your REALTOR® gives you the opportunity to ask questions and view more homes.
Home improvement bargains
According to <a href="https://www.consumerreports.org/cro/money/best-time-to-buy-things/index.htm">Consumer Reports</a>, December is the best month to get a bargain on your home’s major appliances: refrigerators, stoves, washers, dryers and more. If you are thinking you want to buy a home with the intention of fixing it up, waiting until the fall to buy and the winter to upgrade can save you a bundle of money! Bonus, the end of the year is also the best time to buy cookware and TVs.
Less competition, deals on home goods and lower home prices make fall the PERFECT time to buy a home. A little patience can go a long way.
Do you want to buy a home in the Austin area? Now is the ideal time to buy. Give us a call today to get more for your move.2019-10-15T17:30:00-07:002019-11-03T06:10:50-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:63115 Step Strategy for Downsizing Your HomeIn our “bigger is better” culture, there’s an expectation that each home should be larger and grander than the last. But life changes like divorce, kids leaving for college, or even the simple act of growing older can prompt us to find a smaller home that better suits our shifting needs and lifestyle.<img src="https://assets.site-static.com/userfiles/1602/image/August-2019-MVP-Social-Media-Image.png" width="400" height="210" alt="5 Step Strategy for Downsizing Your Home" title="5 Step Strategy for Downsizing Your Home" style="float: right; margin: 11px;" />
In fact, the advantages of downsizing are being increasingly recognized. A “tiny house movement” has gained passionate advocates who appreciate the benefits of living simply at any age and stage of life. Not only does a smaller home typically cost less, it also takes less time and effort to maintain.1
Whatever your reasons are for downsizing, the process can seem overwhelming. That’s why we’ve outlined five steps to guide you on your journey. And in the end, we hope you’ll find that less is more … more comfort, more security, and more time and energy to spend on the activities and the people that you love.
5 STEPS TO DOWNSIZING SUCCESS
Determine Your Goals and Limitations
The first step is to figure out your goals for your new living environment. Do you want to live closer to family? Are you hoping to cut down on home maintenance? Are you looking for a community with certain amenities?
You should also consider any limitations that will impact the home you choose. For example, are stairs an issue? Do you need access to medical care? In the case of divorce, are there child-custody issues you need to take into account?
Estimate how long you plan to stay in your new home. Do you expect your needs to change during that time?
Make a “wish list” of features and prioritize them from most to least important. If you’d like any assistance with this process, give us a call! We’d be happy to sit down with you for a free consultation. We can also help you assess the value of your current home so you can set a realistic budget for your new one.
Find the Perfect New Home
Once you’ve established your “wish list,” we can begin the search for your new home. As local market experts, we know the ins and outs of all the top communities in our area. We can help you determine the neighborhood and type of home that will best fit your wants and needs.
From family neighborhoods to retirement communities, we serve clients in all stages of life. If you or a loved one are in need of extended support, we can also share our knowledge of the assisted living facilities in town and help you identify those that offer the optimal level of care.
Are you planning to relocate out of town? We can refer you to a trusted real estate professional in your target area who can help you with your search.
Sell Your Current Home
If you’re ready to sell your current home, we’ll begin the process of preparing to list it as we search for your new one.
We have a special interest in helping homeowners who are facing major life transitions, and we offer a full-service real estate experience that aims to remove as much of the stress and hassle of selling your home as possible. We also understand that many of our clients choose to downsize for financial reasons, so we employ tactics and strategies to maximize the potential sales revenue of your home.
We do this by employing our proven three-part approach, which focuses on optimum preparation, pricing, and promotion. As part of that plan, we invest in an aggressive marketing strategy that utilizes online and social media platforms to connect with consumers and offline channels to connect with local real estate agents. This ensures your property gets maximum exposure to prospective buyers.
Sort and Pack Your Belongings
Even before you find your new home, you can begin preparing for your move. A smaller home means less space for your furniture and other possessions, so you will need to decide what to keep and what to sell or donate. Sorting through an entire house full of belongings will take time, so begin as early as possible.
Parting with personal possessions can be an extremely emotional process. Start with a small, unemotional space like a laundry or powder room and work your way up to larger rooms. Focus on eliminating duplicates and anything you don’t regularly use. If you have sentimental pieces, family heirlooms, or just useful items you no longer need, think about who in your life would benefit from having them. For large collections, consider keeping one or two favorite pieces and photographing the rest to put in an album.2
Make sure the items you keep help you achieve the goals you outlined in Step 1. For example, if you want a home that’s easier to clean, cut down on knickknacks that require frequent dusting. If you’re moving to be closer to your grandchildren, choose the shatterproof plates over the antique china.
Allow yourself time to take breaks if you start to feel overwhelmed. If you’re helping a loved one with a move, try to be a patient listener if they want to stop and share stories about particular items or memories throughout the process.3 This can be therapeutic for them and an opportunity for you to learn family history that may otherwise have been forgotten.
Get Help When You Need It
Moving is stressful in any situation. But if you’re downsizing due to health issues or a major life change, it can be an especially tough transition. Don’t be afraid to ask for help.
Seek out friends and family members who can assist with packing and decluttering. If that’s not an option, or if you need additional help, consider hiring a home organizer, full-service moving company, or even a senior move manager, which is a professional who assists older adults and their families with the physical and emotional aspects of relocation.4 You can find one accredited by the National Association of Senior Move Managers at <a href="https://www.nasmm.org/find/index.cfm">https://www.nasmm.org/find/index.cfm</a>.
If financial constraints are holding back, let us know. We can help you explore the possibility of tapping into the equity in your current home now. That way you can afford to get the assistance you need to make your transition as smooth as possible.
ARE YOU LIVING YOUR BEST LIFE?
If your current home no longer suits your needs, maybe it’s time to consider a change. We would love to help you explore your options. Contact us today to schedule a free, no-obligation consultation.
Sources:
The Tiny Life -<br /><a href="https://thetinylife.com/what-is-the-tiny-house-movement/">https://thetinylife.com/what-is-the-tiny-house-movement/</a>
My Move -<br /><a href="https://www.mymove.com/moving/senior-guide-downsizing/">https://www.mymove.com/moving/senior-guide-downsizing/</a>
Daily Caring -<br /><a href="https://dailycaring.com/5-tips-to-downsizing-for-seniors-keepsakes-mementos/">https://dailycaring.com/5-tips-to-downsizing-for-seniors-keepsakes-mementos/</a>
National Association of Senior Move Managers -<br /><a href="https://www.nasmm.org/find/index.cfm">https://www.nasmm.org</a>
2019-10-01T18:37:00-07:002019-11-03T05:53:32-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6199Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/1602/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2019-09-29T09:29:00-07:002019-11-03T06:33:47-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6309Did You Inherit Unwanted Property?At first appearance, inheriting a property can seem like winning the lottery. But just like winning the lottery, there are many unrealized steps to take in collecting your “winnings”. Ultimately you have three options when you inherit a property. To live in it, sell it, or rent it out. Regardless of what you choose to do with the inherited property, there are steps to take leading up to your final decision.<img src="https://assets.site-static.com/userfiles/1602/image/Resident_Realty_Texas_Todd_Sherman_Kim_Sherman_real_estate_broker.jpg" width="400" height="268" alt="Did You Inherit Unwanted Property?" title="Did You Inherit Unwanted Property?" style="float: right; margin: 11px;" />
First things first, have us do a market analysis or you right away. Regardless of whether you decide to keep the property or sell it, having an idea of the market value will be helpful as you move forward.
More <a href="https://www.westbrookrei.com/how-to-decide-whether-to-sell-or-keep-your-inherited-property/" target="_blank">How to Decide Whether to Sell or Keep Your Inherited Property</a>
You'll need to have the property legally transferred to you. If you need a recommendation for a real estate attorney, we have some great connections. You'll also want to know what taxes you might be required to pay moving forward. If you need a recommendation for a CPA, we have great connections there too!
After all, avenues are explored, you may find that the best decision after inheriting property is to sell. Give us a call! We have been selling property for almost 20 years and will help protect your interest in the process, help you navigate your best course and make sure you know all of your options along the way to a smooth closing.
"This article shouldn't be considered tax advice, and for all questions or concerns of that nature, please contact your trusted CPA."2019-09-16T18:31:00-07:002019-11-03T05:55:41-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6306How to Incorporate Eco-Friendly Fixtures into Your HomeIn recent years, homes and homeowners have become more environmentally conscious. Are you wondering how you can incorporate this trend? As it turns out; it is pretty easy to reduce your carbon footprint. Simply incorporate a few eco-friendly fixtures into your home. Here’s what you should know:<img src="https://assets.site-static.com/userfiles/1602/image/green.JPG" width="400" height="272" alt="How to Incorporate Eco-Friendly Fixtures into Your Home" title="How to Incorporate Eco-Friendly Fixtures into Your Home" style="float: right; margin: 11px;" />
Water
Look for a WaterSense label on your faucets, toilets, showerheads and bathtubs. This label indicates the device has met the strict restrictions certified by an independent testing facility for better conservation and lower water costs.
Lighting
Reduce the cost of lighting your home in the following ways:
Add a dimmer switch to lower the output level of the bulb. The lower the output level, the lower consumption and energy bill.
Add a timer that turns your lights off at a specified time of the day or consider motion-sensor lights to turn on when you enter the room and off shortly after you leave.
Change out your bulbs to an energy-efficient option: CFLs and LEDs. Also, look for the Energy Star symbol on the bulbs.
Heating and Cooling
The cost of heating and cooling a home accounts for the majority of an electric bill – especially during the scorching HOT Texas summers. To cut down on the cost, install a smart thermostat. These devices can learn your habits and help save you money.
Another way to reduce the cost of heating and cooling is to insulate your windows and doors. You don’t want hot air entering and cold air escaping!
Serving your air conditioner regularly – each season – can ensure it is at peak performance.
Water Heater
Switch over to a tankless water heater, a device that heats water as you need it, and save an average of $100 per year.
Do you have any questions about any of these fixtures? Give our team a call. We would be honored to help you make your home more eco-friendly.2019-08-20T18:25:00-07:002019-11-03T05:58:19-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6304Thinking of Moving? Here are 5 Signs It’s TimeAccording to the National Association of REALTORS®, ten years is the average amount of time a homeowner stays in a house. Does that seem long? Or way too short? The truth is, the time frame is drastically different for every individual. And, so is the reason. How do you know when you are ready to sell your home? Here are five signs it’s time to make a move:<img src="https://assets.site-static.com/userfiles/1602/image/house_for_sale_with_family.jpg" width="400" height="289" alt="Thinking of Moving? Here are 5 Signs It’s Time" title="Thinking of Moving? Here are 5 Signs It’s Time" style="float: right; margin: 11px;" />
You want to get in on the seller’s market<br />Ready to make a profit on your property? NOW is the time as the Austin market is prime for sellers. To see what you can get, take a look at online listings in your neighborhood and see what other homes are selling for. Or, contact our team today for your complimentary market analysis. If the number looks appealing, selling may not be a bad
You’re feeling financially stressed<br />As home prices increase in the Austin-area, so too do property taxes. Are you struggling to make your monthly mortgage payments? If so, it may be the time to downsize to a smaller home. Easing your financial burden will relieve the stress in your life. To live comfortably, make sure your monthly housing costs don’t exceed 28 percent of your gross monthly income.
Your family has outgrown your home<br />A starter home is perfect when you just get married. However, it may not be practical when you have children. As your family grows, so should your home. Then, once your children fly the coop, consider downsizing. Too big of a home is hard to clean and more expensive in property taxes. The bottom line? Make sure your home works for your family.
You’re sick of high maintenance<br />On average, a homeowner spends $2,000 a year for maintenance services. And, as a general rule, the longer you have the home, the more likely parts will need maintenance or replacing. Are these costs getting too expensive? To avoid the high maintenance costs, consider buying a low-maintenance condo or a new-build home.
You’ve had the home more than five years<br />There is such a thing as selling your house too soon. How long should you stay? At least five years. At this point, most homeowners have built up equity beyond that of the down payment and selling is feasible. Urgent circumstances come up, but, if you can help it, you should plan to stay for more than five years. Oh, and remember, selling isn’t free. You have to pay for the costs associated with hiring a real estate agent, closing and buying a new home.
Of course, there is no guarantee that selling will work out better for you. Think about it and do what you think will work best in the long run.
Have questions about selling? We are here to help you get more for your move. Contact us today to learn more.2019-08-12T18:19:00-07:002019-11-03T06:00:14-07:00Todd Shermantag:residentrealtyaustin.com,2012-09-20:6300Top 6 Mortgage Tips for First-Time HomebuyersIf you’re a first-time homebuyer, the mortgage process may seem intimidating. However, it doesn’t have to with a little bit of knowledge and understanding. With that in mind, here is a look at six mortgage tips to educate you on the process before you even get started: <img src="https://assets.site-static.com/userfiles/1602/image/first_time_buyers.JPG" width="400" height="274" alt="Top 6 Mortgage Tips for First-Time Homebuyers" title="Top 6 Mortgage Tips for First-Time Homebuyers" style="float: right; margin: 11px;" />
Study the mortgage types<br />Do you know what your choices are when it comes to different mortgage loans? Likely, if you have never been through the process before, you have little knowledge on the subject. However, it is something you can learn with just a little bit of research. Start by taking a look at the pros and cons of conventional vs. government-based loans and adjustable-rate vs. fixed-rate loans. The information should help you narrow down your best option. If you still have questions, reach out to a lender in the area. They should be able to walk you through all of your options.
Consider how long you’ll live in the house<br />How long you plan on living in the house can be a big deciding factor on the type of loan you should get. For example, an adjustable-rate mortgage, with a lower interest rate up front, could be a great option if you plan to stay in the house for a few years while a fixed-rate is usually a better option long term.
Shop for the best rate<br />The interest rate on your loan is determined by your credit history and credit score, among other factors. Typically, when your credit is good, you will get a lower rate and, when bad, a higher rate. But, every lender is different. What do we mean by that? Each lender has a different comfort level. With that in mind, shop around and look for the best rate. One lender may offer you a lower interest rate than another.
Consider paying points<br />Points. What are points? A “point” is simply one percent of the loan amount. To lower your interest rate, consider paying some points upfront. Keep in mind; this is a great idea over the long term, but likely not a great idea if you aren’t planning on staying in the home for more than five years.
Ask for advice<br />Talk to family members and friends who have been through the process. They likely have great advice and information that may be useful to your decision.
Factor in PMI<br />PMI, which stands for private mortgage insurance, is an increase in your monthly payments if your down payment is less than 20 percent. If you don’t have 20 percent for a down payment, be sure to factor this cost, generally found on mortgage estimates from lenders, into your monthly budget as it can get pretty expensive. To avoid this cost, wait until you have enough money saved up to make a 20 percent down payment.
Need help locating a lender in the greater Austin area? Give us a call. We would be happy to connect you with a trusted professional in the area.2019-08-12T18:07:00-07:002019-11-03T06:13:48-07:00Todd Shermantag:residentrealtyaustin.com,2012-09-20:6303Know Before You Go! Mortgage Prep & Home Affordability<img src="https://assets.site-static.com/userfiles/1602/image/March_2019.jpg" width="400" height="200" alt="Know Before You Go! Mortgage Prep & Home Affordability" title="Know Before You Go! Mortgage Prep & Home Affordability" style="float: right; margin: 11px;" />Many people fall in love with a new home, only to find out they will not be able to afford it. Here are a few quick tips to make sure this doesn’t happen to you!
PREPARE!
Order your complete credit file from annualcreditreport.com. Once per 12 months, you can obtain a FREE report from all three credit bureaus (Equifax, Experian, Trans Union). If there are any errors, correct them.
Check your FICO credit score using a service such as Credit Karma. Sometimes your credit card company or bank may provide this free service as well.
Gather documents your lender will need: documentation of income/employment, two years of IRS tax returns if self-employed, bank statements, 401(k) funds, and other assets.
Make a list of current household expenses that are recurring such as car payments, health insurance, cell phone bills, etc.
HOW MUCH HOME CAN I AFFORD?<br />There is no simple, magic formula to determine how much home you can afford.
The old standard was 2.5x your annual income. If true and you made $100,000, you could afford a $250,000 home.
Today, some experts suggest that you can afford a mortgage payment as high as 28% of your gross income. If true and you made $100,000, you could afford a $450,000 home.
Most lenders will take your information and use automated underwriting models that factor in credit scores, debt-to-income ratios, and many other factors.
CONNECT WITH A TRUSTED LENDER <br />The best way to truly know before you go? Get PRE-APPROVED by one of your Realtor’s preferred lenders.
Realtors work with lenders all the time as they are an integral part of the home buying process. Your Realtor has a unique, professional insight into what makes a lender a professional they would entrust with their clients.
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Ready to take that next step? Connect with us today and we will connect you to our preferred lenders. Together, we will help you prepare for home shopping and finding your new home!
Meet Resident Realty
Since we opened our doors in 2002, the goal has been to provide the best value to each and every one of Resident Realty's clients and customers. Value can be measured in many different ways but ultimately, it comes down to five pillars: Expertise, Work Ethic, Service, Cost, and Results. By always striving to offer the best value in the Austin market, Resident Realty and its Brokers and Realtors have been awarded multiple Austin Business Journal and Texas Monthly Five Star Professional Awards in the past decade.
Contact Resident Realty today for your Austin area real estate needs.<br />(512) 899-8309 | <a href="mailto:austininfo@residentrealty.com">austininfo@residentrealty.com</a>2019-08-01T18:18:00-07:002019-11-03T06:01:26-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6276Are You Thinking About Buying a Home in Barton Creek?<a href="https://www.residentrealtyaustin.com/barton-creek-homes-for-sale/"><img src="https://assets.site-static.com/userfiles/1602/image/1829645-residential-12fi6p4-l_1024.jpg" width="350" height="232" alt="Are You Thinking About Buying a Home in Barton Creek?" title="Are You Thinking About Buying a Home in Barton Creek?" style="float: right; margin: 11px;" />Barton Creek</a> is one of the most upscale communities located in Austin, Texas, and it has a lot to offer to those who are looking for a fantastic opportunity to call home. This high demand area is not easy to buy into though. There are several factors to consider when looking in Barton Creek, and working with a local expert will make it possible to find and purchase your Austin dream home at a reasonable price.
What Does Barton Creek Have to Offer?
Barton Creek has plenty to offer today’s more affluent buyer that wants a lot of space and yet desires to be close to all that Austin itself has to offer. The community is a short drive away from Austin itself. It sits on about 5.4 square miles of wooded, hilly country, bursting with natural beauty that is sure to appease any lover of the outdoors. It is known for the Barton Creek Resort and Club, which offers visitors a wide range of amenities, and plenty of attractive features for members. Beyond the area's landscape and amenities, Barton Creek is very private, and can give you more of the highest quality of life you are looking for.
The homes here range quite a bit in size, type, and price. You will find many are garden homes, with a lot of Mediterranean influence. You are sure to find these homes stunning, which often look much more like exotic villas than traditional American homes.
Once again, it can prove to be difficult to find a Barton Creek home in Austin without the help of a local real estate agent that knows the region well. However, if you are looking for golf course living at its best, you do want to have access to all of the homes for sale in Barton Creek and the surrounding region. They are well worth investing in for many of today’s buyers. Contact Todd Sherman today to learn more about Barton Creek, and to get started on the search of your Austin dream home.2019-07-12T16:52:00-07:002019-11-03T06:02:28-07:00Todd Shermantag:residentrealtyaustin.com,2012-09-20:62985 Tips For Downsizing This SummerDeciding to sell your home can be a stressful choice, but the process of how to downsize can be easier than you think if you get organized. The overwhelming feeling of what will make the move to the new home or condo in Austin, TX and what will be eliminated can be calmed with a few steps. Start by taking inventory of everything you’ve accumulated over the years and end with a smaller, more organized space where you can begin a new chapter in your life.<img src="https://assets.site-static.com/userfiles/1602/image/adult_children_buying_home.jpg" width="400" height="600" alt="5 Tips For Downsizing This Summer" title="5 Tips For Downsizing This Summer" style="float: right; margin: 11px;" />
Take Inventory of your Life
Take a close look at your life and the things you have in it. What household items do you actually use on a regular basis, and which are collecting dust? If you have a gym membership or a workout space in your office building and the treadmill in the garage is more of an expensive clothes hanger, it’s time to move it out. From clothes to small kitchen appliances, there are items you use daily, and they will clearly make it into the “keep” pile, but everything else needs to be divvied into a donation, sell, or waste pile.
Sort Your Items
As you go through your each room in your home, make sure each thing clearly fits into one of four categories:
Keep
Donate
Sell
Trash
Moving into a smaller space means you’ll take less with you, so if something doesn’t immediately make the keep pile, it needs to go. Create a sell pile for a garage sale before your move or take the items by a second hand shop to be purchased. There should also be a pile for donations – GoodWill, community shelter, or place of worship—and for the old, broken, or beyond their years items, it’s time for the trash.
Storage Space First
The attic, storage closets, or basement should be the first places to clear out. These spaces often hold items that we haven’t used – maybe even seen – in years. A good rule is to get rid of anything you haven’t used or worn in the past year. The boxes you’ve been hauling during any move over the years need to be cleared out. Don’t pack something away knowing you’ll never use it in your new home.
Stay Dedicated
Downsizing a home is no small task, so don’t wait until the last minute before your move to lighten your load. Begin weeks in advance, so you can take one room at a time and won’t become overwhelmed with the process. When you’re trying to rush through your items, you may be tempted to discard things you’ll actually need once you make the move. Finish your storage spaces then move to individual rooms in your home. If your move is close enough, you could use this time to begin packing boxes with the things you want to keep.
Take Measurements
If you’re living in a large family home in Austin, TX, measure your new space and then your furniture. Ensure that none of your pieces are too large for the desired room. It may be necessary to eliminate a piece or downsize to smaller pieces so your new home isn’t packed with oversized furniture.
Remember to give yourself plenty of time, be honest when it comes to how often you use or wear something, and if you’re unsure, put it in the donate box. Use this move as a way to cleanse the old from your cabinets and closets and enjoy the downsizing process.2019-05-22T18:03:00-07:002019-11-03T06:19:56-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6284How Much House Can You Actually Afford?Before beginning the home search, it is important to determine how much you can actually afford to spend on a home in Austin, TX. Just because your lender approves you for a loan, doesn’t mean it is a good fit. While there are online calculator tools to determine how much you can afford – they aren’t always an accurate representation of your personal financial situation. If you can’t trust these online calculator tools, how do you determine how much house you can actually afford? Let’s walk through the details together:<img src="https://assets.site-static.com/userfiles/1602/image/42516629_1200.jpg" width="400" height="300" alt="How Much House Can You Actually Afford?" title="How Much House Can You Actually Afford?" style="float: right; margin: 11px;" />
Financial Rules May Not Apply to Your Personal Situation
Have you ever heard the sage advice, "your mortgage payment shouldn't take up more than 35 percent of your monthly income?" What is your monthly income? If you aren't sure what your monthly income is, how can you determine what 35 percent of that number is? While monthly income seems like a straightforward number, it isn't! The truth is, your monthly income depends entirely on your financial situation. Are you paying off debt? What monthly payment obligations do you have? How much have you saved for a down payment? Your real monthly income is the amount you have available after you take into account loan payments, housing costs, and other monthly debt obligations. In other words, it is the amount you have left after you pay your daily living expenses.
An online mortgage calculator can give you a rough estimate of how much home you can afford if you have high credit scores and a clean financial background. However, these tools are only as accurate as the information you provide. To ensure an accurate estimate, make sure you are honest about daily living expenses (food, gas, etc.), debt, and income.
Your Lender May Overestimate What You Can Actually Afford
To approve a new mortgage, a lender must determine how much you can "reasonably afford" to repay. Now, keep in mind that “reasonably” is an entirely different word than actually. To determine a reasonable mortgage, your lender takes into account your income and any current debts you pay each month. Here’s an example: If you make $4,000 a month after taxes and need to pay $200 to your student loan each month, your lender may conclude that you can reasonably afford a mortgage of $1,500. However, these are the only two things they take into account. In this situation, you would have $2,300 to spend on daily living expenses. Which, depending on where you live, may be reasonable. But what are your financial goals? Do you want to start saving? If you spend too much of your monthly income on a mortgage, you may be strapped for cash and find yourself counting pennies every month. Just because your lender says you can reasonably afford that mortgage, doesn't mean you should automatically assume you can.
Only YOU know what you can ACTUALLY afford – AND, what feels RIGHT to YOU
You are the only one that can determine what is comfortable when it comes to your monthly budget. Before committing to a monthly mortgage number, determine what number fits in YOUR personal budget. If you don't have a budget, make one! From there, determine what number is a comfortable fit for you and your lifestyle. Decide what you can live with and what you can live without. And, don't forget your long-term financial plans!
Here are a couple of questions to help you determine what you can afford:
What is my income? What are my daily living expenses (food, electric, gas, etc.)? What are my fixed costs (rent, loan payments, etc.)?
What are my long-term financial goals? How much do I want to save or invest each month?
How much will it cost to maintain a home?
How much do I have saved for a down payment?
Keep in mind; the higher your down payment, the smaller your monthly mortgage. It may be smart to hold off on purchasing a home until you have more money saved up for a down payment.
Always consider YOUR financial situation before rushing into purchasing a home. Your financial goals and lifestyle determine what you can ACTUALLY afford!
Do you have any questions? We want to help you get more from your move; give us a call anytime.2019-05-20T17:19:00-07:002019-11-03T06:08:22-07:00Todd Shermantag:residentrealtyaustin.com,2012-09-20:6285Energy Saving TipsDid you know heating and cooling account for approximately 40 percent of your home's energy expenses? In Texas, heating isn't the issue...it's cooling the house during the seemingly never-ending summer heat! How can you reduce your energy bill this summer? Even the smallest change can make a difference. Below are some of our top energy-saving tips:<img src="https://assets.site-static.com/userfiles/1602/image/depositphotos_139090504_m-2015_999.jpg" width="400" height="267" alt="Energy Saving Tips" title="Energy Saving Tips" style="float: right; margin: 11px;" />
Cover Your Windows
Shut your blinds during the day and only open them at night or early in the morning if you are looking for some natural light. If you have curtains, closing them during the day will keep the interior of your home even cooler.
Use Your Ceiling Fan
A ceiling fan is an excellent source of ventilation and helps maintain circulation throughout the home. The breeze created by the ceiling fan can make any room feel up to eight degrees cooler.
Shut Off Heat Generating Appliances
It turns out; the majority of our everyday appliances produce heat. At the very least, refrain from doing laundry and cooking anything in the oven or on the stove on extremely hot days. If you don't have another option, use the laundry room fan or hood fan to help maintain circulation.
Regulate the A/C
While going without air conditioning in Texas is impossible, there are ways to control how much energy you are using. Try moving the thermostat up a couple of degrees during the day – each degree you raise the thermostat saves seven to 10 percent on your cooling costs. If you like sleeping at a cooler temperature, you can move your thermostat down a couple of degrees at night – as at that night your air conditioner isn't working quite as hard as it is during the day.
Smart Home Thermostat
A smart thermostat may be a great investment during the never-ending heat of a Texas summer. These thermostats allow you to decrease or increase the temperature in your home remotely – and, as a bonus, some will even learn your habits and know when you are home or when you are away. A smart thermostat can save you five to 15 percent on annual heating and cooling bills, according to Energy.gov.
Free Energy Inspection
Do you know where you use the most energy? If not, consider asking your power company to conduct a free energy inspection. These professionals will tell you exactly where you are using the most energy and make recommendations on how to cut your bills.
What energy saving tips do you recommend? Send them our way – we would love to add them to our list!
Do you have any questions about the Austin area? We are here to help you get more from your move; give us a call anytime.2019-05-06T17:21:00-07:002019-11-03T06:07:41-07:00Todd Shermantag:residentrealtyaustin.com,2012-09-20:6286Hidden Costs of a Home RemodelA home renovation can be costly – even more so if hidden costs arise during the project. Before starting your home remodel, be aware of these hidden costs that may end up costing you more money than the project is worth:
Changing your mind<img src="https://assets.site-static.com/userfiles/1602/image/Depositphotos_8671123_m-2015.jpg" width="400" height="267" alt="Hidden Costs of a Home Remodel" title="Hidden Costs of a Home Remodel" style="margin: 11px; float: right;" />
It turns out; changing your mind is one of the largest costs of a home renovation. Did you know that approximately 95 percent of costs come from inadequate scopes of work and scope creep, also known as change orders? It’s true! How can you avoid this cost? Make sure you know what you want before you start – and don’t change your mind!
Surprise structural changes
Unplanned structural changes can increase your budget by 10 to 15 percent. To avoid a hefty cost, explore all remodel options with your contractor before you begin work.
Building standards – “up to code”
What was once “up to code,” may not be today. Always consider the current building standards when starting a remodel – and be mindful that if you discover something that is not up to code during a remodel, you have to bring it up to code - which is an added expense.
Higher utility bills
This expense is minimal – but do expect for your electric bill to increase during renovation months. The amount is entirely dependent on what you're renovating and how much electricity you're using.
Board pets
To ensure your pets are safe and out of the way, board them during the remodel. Boarding your pets may be expensive - depending on how long the remodel is going to take and the boarding rate. To save money, make plans with a family member or friend to watch your pets during the days you are renovating.
Eating out
If you’re doing a kitchen remodel, expect to eat out a lot – as your kitchen will be a construction zone!
Pest and rot damage
Unforeseen issues can come to light during a home remodel. Be aware of pests (termite damage) in the South and rot (rotting wood) in the North. If found, fixing the damage can be costly.
Your time is money
During a remodel, you will most likely need to take time off work to meet with contractors and make selections on design materials (backsplash, flooring, countertops, etc.). Can your work schedule accommodate for this? Make sure your schedule and budget can endure this time off.
Moving out/in
Do you have to vacate your home or move out belongings to make room for the renovation? Consider the costs of pods and storage units and a place to stay during the remodel. To save money, consider making arrangements to bunk with a family member or friend during the renovation.
Be proactive and consider these hidden costs before embarking on your home renovation – your sanity and bank account will thank you.
Do you have any questions about the Austin area housing landscape? We are here to help you get more from your move; contact us today! 2019-05-01T17:23:00-07:002019-11-03T06:07:02-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:630525 Ways to Refresh Your Home for SpringThe warmer weather of spring has arrived in the Austin-area. A new season brings the opportunity to refresh your home. How can you bring the season inside? These tips will have your home bright and inviting in no time:<img src="https://assets.site-static.com/userfiles/1602/image/photodune-1738316-colorful-flower-garden-xs.jpg" width="365" height="548" alt="25 Ways to Refresh Your Home for Spring" title="25 Ways to Refresh Your Home for Spring" style="float: right; margin: 11px;" />
1. First, declutter!
2. Store away winter accessories: heavy blankets, dark pillows, etc.
3. Clean interior windows, mirrors and light fixtures
4. Dust baseboards, ceiling fans, furniture, etc.
5. Steam clean carpets, polish hardwoods and sweep/mop tile floors
6. Deep clean the grout: flooring, bathroom, etc.
7. Add some fresh flowers
8. Bring the scent of the season inside by incorporating spring-scented candles or wall plug-ins
9. Update your bedding to a lighter comforter
10. Update your throw pillows to bright colors of the season: yellow, pink, green, etc.
11. Brighten the home by opening the curtains - consider switching your heavier curtains for sheer panels
12. Rearrange the living room for a fresh look
13. Add floral accents: throw pillows, a wallpaper accent wall, garden wall art, etc.
14. Add a basket/bowl of fresh fruit on the kitchen counter – lemons, apples, bananas, etc.
15. Install a new showerhead
16. Swap in a new bath mat
17. Repaint your baseboards
18. Decorate with living plants – it is said indoor plans can improve people’s moods
19. Upgrade to a smart thermostat – the upgrade can save you some money over the warm summer months
20. Hang a wreath on the front door
21. Set out a new welcome mat
22. Repaint your front door
23. Add some window boxes and plant spring flowers
24. Refresh your patio furniture with a fresh coat of outdoor paint
25. Brighten up your outdoor living space with some new lighting: lanterns, string lights, etc.
Are you refreshing your home for a spring sale? We can help with that, too. Contact us for details on how to stage your home to sell.2019-03-01T19:22:00-07:002019-11-03T05:59:23-07:00Resident Realtytag:residentrealtyaustin.com,2012-09-20:6279Prepare Your Home for a Spring SaleIs a spring sale on your 2020 to-do list? If it is, did you know that preparing your home for the market can make a tremendous difference? It's true; a little preparation can go a long way! Preparing your home may increase its value and reduce its time on the market. How should you get your home ready for the market? Here are a couple of tips to prepare your home for a spring sale:
<img src="https://assets.site-static.com/userfiles/1602/image/prepare_your_home_for_a_spring_sale_checklist_-_todd_sherman_3562.jpg" width="800" height="970" alt="Prepare Your Home for a Spring Sale" title="Prepare Your Home for a Spring Sale" style="margin: 11px;" />
Exterior
Keep your landscaping well-manicured and grass cut
Remove all yard clutter and unnecessary items
Apply fresh stain or paint to wooden fences and decks
Paint the front door and add pops of color using seasonal plants in pots
Sweep, power wash, and add a new mat to the front porch
Weed and add fresh mulch to garden beds
Add freshly-planted flowers to gardens
Power wash and/or paint the exterior
Wash all windows, interior and exterior
Clean gutters and downspouts; ensure all downspouts are securely attached
Ensure the key and lockset on all doors operate smoothly and properly
Interior
Remove excessive wall art, furniture, and personal items
Clean, touch-up, and/or paint walls and ceilings
Shampoo carpets and deep-clean hard surface flooring
Clean and organize cabinets and closets
Consider a temporary storage unit for unneeded items
Repair all plumbing leaks, including faucets and drain traps
Clean all light fixtures and ceiling fans
Consider purchasing fresh covers, pillow covers, and decorative pillows for beds
Buy fresh decorative towels for the kitchen and bathrooms
Buy fresh rugs for entryways, bathrooms, and kitchen
Place fragrant soaps in bathrooms
Contact us for a complimentary comparative market analysis of your home.
Do you have any questions about the Austin area real estate market? Having worked in the area for several years, our REALTORS® have the experience and knowledge you are looking for. Give us a call anytime; we would be happy to help!2019-01-21T18:07:00-07:002019-11-03T06:22:21-07:00Resident Realty