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Mistakes Buyers Make When Searching for Their First Home, and How to Avoid Them

July 15, 2019 by cdiez Leave a Comment

Buying your first home can be a very exciting time. There is something about not having to pay rent anymore. Sometimes, with all of the different things going through a home buyers mind, we can make a mistake. Jaymi Naciri covers some of the mistakes that can be made and offers tips to avoid them.

Many starter-home purchases are driven primarily by price, which is understandable. But, there are so many other considerations involved in finding the right place, like square footage and location, to name just a few of the most consequential.

When looking for your first home, it’s critical to keep the most important considerations in mind so you don’t find yourself going down a real estate rabbit hole. Remember these common buyer mistakes to keep you on track.

Buyer mistake No. 1: Being seduced by the pretty stuff

Fresh paint, pretty throw pillows, nice bedding. They’re all decoration, and decoration can be dangerous for homebuyers. Don’t let it distract you from the house itself. How’s the floorplan? Does it work for your family? Is there enough square footage? Does the location make sense? These are among the factors that should be driving your purchase.

Buyer mistake No. 2: Searching for a home that fits your furniture

How many times have you heard a buyer on House Hunters say, “Our furniture won’t fit in here.” When you’re buying a property that costs a couple hundred thousand dollars, it’s silly to hold back over a five-year-old, $1,000 couch.

Buyer mistake No. 3: Getting too hung up on price

It’s easy to get a number stuck in your head and refuse to give up, but that figure might not be doable depending on your local real estate market. Raising your price range by $10,000 may vastly increase the available homes and may only mean another $50 per month. That’s one lunch out you can forgo to get what you really want.

Buyer mistake No. 4: Not trusting your gut

The price is right, the location is right, and the home has the right number of bedrooms and baths. But it just doesn’t feel right. You may not be able to put your finger on what it is that’s bothering you about a house, but if something’s nagging at you now, imagine what it will be like to live there. It could be your gut is trying to tell you something.

Buyer mistake No. 5: Ignoring the neighborhood

The hope is that any major problems with the home you’re looking at will show up on an inspection report, but other issues could pop up to derail your purchase or kill your enjoyment of the home once it belongs to you. A lot of the time, that has to do with the neighborhood.

That could mean a commercial area too close to home, a rundown house across the street, or some zoning changes that are bringing a ton of new multi-family units to the area and increasing traffic. Whatever it is that’s bothering you, think it through. You can always fix your home, but you can’t change the neighborhood.

Buyer mistake No. 6: Not thinking long term

Maybe you think you’ll only be in this “starter home” for two years, and, therefore, the neighborhood isn’t all that important. As long as the house meets your approval, you’re good, right? According to a study by ValuePenguin, “the median duration of homeownership in the U.S. is 13.3 years.” That varies depending on the location, however, of the 20 largest U.S. cities studied, the lowest median was 9.7 years in Denver.

Does that mean you’ll stay in this home for 10 years or more? Who knows. But if you’re a young couple planning to have kids in the next three-to-five years, let’s say, it wouldn’t hurt to make sure the home you buy now can accommodate that lifestyle change.

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Investors Are Buying More of the U.S. Housing Market Than Ever Before

July 7, 2019 by cdiez Leave a Comment

Laura Kusisto writing for the Wall Street Journal gives us a housing investor update. It seems that there is always a way to capitalize on real estate.

The share of investor purchases of U.S. homes have climbed to an all-time high, a sign that rising home prices have done little to dampen demand for flipping homes or turning them into single-family rentals.

Big private-equity firms, real-estate speculators and others that buy properties comprised more than 11% of U.S. home purchasers in 2018, according to data released on Thursday by CoreLogic Inc.

The investor purchases are the highest on record and nearly twice the levels before the 2008 housing crash. The investor interest poses a challenge for millennials and other first-time buyers who are increasingly looking to buy starter homes and are forced to compete with deep-pocketed cash buyers.

Big commercial property owners like Blackstone Group LP and Starwood Capital Group began buying thousands of homes out of foreclosure during the housing bust. Many economists credit investors with helping to stabilize the housing market in 2011 and 2012 by buying with cash when prices were low and mortgage credit froze.

But analysts expected those purchases to slow, as the market rebounded and properties could no longer be had for fire-sale prices.

Instead, demand for properties has intensified. While these purchases dipped slightly when the market started to recover in 2015 and 2016, they have rebounded to surpass the previous peak of six years ago.

Strong rental demand, technology that facilitates buying homes online and low interest rates that make other investments less appealing have fueled investor appetite.

Investors are an especially powerful force at the bottom of the market, where they often pay all cash. Investors purchased one in five homes in the bottom third price range in 2018, according to the CoreLogic analysis, up 5 percentage points from the 20-year average of less than 15%.

“These are the homes that first-time home buyers would logically be buying,” said Ralph McLaughlin, deputy chief economist at CoreLogic.

Shane Parker, a real-estate agent in metropolitan Detroit, said first-time buyers he works with are struggling to win bidding wars against out-of-state buyers. The locals he works with are becoming more aggressive, putting in escalation clauses and agreeing to pay the difference if properties don’t appraise.

One of his clients, Michael Burnett, a tech writer in Detroit, and his wife are looking for their first home so they can have a treehouse for their young girls. They have visited 25 properties and bid on half a dozen but keep losing out to cash buyers.

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Purify the Air, Drown out Traffic, and Reduce Stress, All by Adding a Fountain

June 28, 2019 by cdiez Leave a Comment

Let’s face it. The steady sound of running water can be quite relaxing. Jaymi Naciri gives us the 411 on the advantages of adding a fountain to our yard.

We just got back from a lovely vacation to Costa Rica, and, truth be told, we’re already looking to go back. Being on vacation in such a tranquil environment is a pleasure, and coming back to “real life” is…well…all too real.

Until the day comes when we can surround ourselves with hammocks and tropical flora and wild monkeys and Pina Coladas on a permanent basis, we’re on a quest to make our home environment as peaceful as possible. And today we’ve got fountains on the brain.

While fountains are super pretty to look at, there are a number of additional advantages to adding one to your home. Here are a few reasons why you need one immediately.

They can help reduce stress.

Sitting outside watching the fountain bubble and flow is naturally calming. Bring it inside and you’ll get an extra dose of relaxation-inducing properties.

“How exactly do fountains decrease stress? Because not only are you providing soothing sounds of water flow, but you are also filling the air with negative ions, which can help to improve a person’s mood and energy,” said Kinetic Fountains. “Many fountain users report that simply installing a fountain nearby helps them to attain peace of mind, calmness and a certain ‘serene’ feeling.”

They can help drown out the sound of traffic.

If you live on a busy street or have other environmental noises that detract from your happiness or peacefulness, a fountain is a great solution. “You will be amazed at how even a soft flowing water sound can drown out other sounds around you such as traffic, voices in the next room, that dog that always barks at the same time every night and the neighbor in the upstairs apartment who walks loud,” said Serenity Health.

They improve the ambiance.

“An outdoor water fountain can turn any backyard into an oasis,” said Good Changes Now.

They can purify the air.

Add a fountain to your indoor space and it can work to improve the air quality. “In today’s electronic world there are many gadgets that emit negative ions in our homes and offices,” said Serenity Health. “Indoor water fountains can improve the air in your home with negative ions, reducing air pollution. Dust is attracted by the negative ions so your water fountain is actively working to purify the air. The continuous moving water in a fountain will not only relax you with its water sounds but will also rejuvenate you with negative ions.”

They are natural humidifiers.

Let’s face it. Humidifiers are ugly and loud, and can stand out in a room for all the wrong reasons. But, “Dry environments are a catalyst for poor health and irritating for those suffering from dry skin conditions,” said Water Gallery. A fountain makes a great—and much better looking—substitute.

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Save or Splurge? Where You Can Scrimp

June 17, 2019 by cdiez Leave a Comment

Once again Jaymi Naciri writing for Realty Times, has come with something new to keep us thinking about the best ways to spend or scrimp on our home.

Saving money is great. But saving money can also prove problematic. While a piece of furniture that’s not used a lot or a knickknack that is not prominently displayed might be fine, you want to be careful when pinching pennies if it means compromising on quality.

Furniture

This is a mixed bag. You can get away with an inexpensive coffee table, and you may be able to score a killer deal on a dining table that looks far more expensive than it is. But when it comes to upholstery, proceed with caution—especially with large pieces. Cheap textiles can pill, rip, wear out easily, and stain permanently. Plus, the material is often scratchy and uncomfortable.

“The sofa is one of the most significant items you’ll ever buy for your home. It takes up a lot of visual space, it’s important for comfort purposes, and it’s something you could have for two or even three decades,” said The Spruce. “Look for something made with high-quality materials such as kiln-dried hardwood and eight-way hand-tied spring construction, and purchase a classic style so that over the years it can be recovered if you want to update the fabric and give it a different look. Remember the rule that a high-quality sofa should last around 25 years while one of average quality should last about 10.”

Art

Many designers will tell you that money is no object when it comes to art. “Unlike a rug that may get dirty in a couple years or a glass that could end up breaking at your next dinner party, the art you invest in is likely to stay with you for many years, or maybe even a lifetime,” said Real Simple. “The key is to take your time finding art you love, that you’ll want to spend years living with, and that fits your style.”

We agree with all of that, except for the “need to splurge” part. It’s gonna be awhile before we’re playing with Picasso money. In the meantime, we love finding great new resources to buy inexpensive art—especially those that allow us to support emerging artists instead of buying stuff that’s mass-produced. From Society6 to Minted to to Etsy, there are a number of places you can find great stuff without a great expense.

Flooring

Skimp out on your flooring and you might find yourself having to redo it soon—or living with the consequences of a poor choice. Everything from a wood product that is made too thin, and therefore is damaged easily, to poor adhesive, to carpet that doesn’t have the quality to stand up to kids, pets, or everyday use can cause problems sooner than you may expect.

Rugs

“One of the best items to buy cheap is an area rug, Gen Sohr, one half of the husband-and-wife team behind Pencil & Paper Co., a Nashville-based interior design firm, said to Real Simple. “I think there are so many wonderful area rug options that are a complete steal. And really who wants to break the bank on something that’s going to eventually get soiled and need to be replaced?” she says. For an option that’s both affordable and durable, she recommends a natural sisal rug, which also hides the appearance of dirt. A flatweave wool rug is another popular option, and Sohr recommends finding deals on Overstock.com or Rugs USA.”

Mattresses

It can be tempting to go cheap on a mattress simply because it so expensive. But, if you really spend a good third of your life in bed, it’s worth it to pay for quality. If you can’t pay outright, it’s usually possible to get a zero-interest payment plan from a mattress stores if you have decent credit.

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See How 1 Kitchen Style Works With 5 Types of Wood

June 5, 2019 by cdiez Leave a Comment

Barbara Milner, a Houzz contributor, shows us just how good a kitchen can look.

If you’re considering the contemporary style for your kitchen, one challenge you may face is how to make it cozy. Choosing wood cabinets is one wonderful way to add warmth.

These five kitchens are contemporary, a design style characterized by clean lines, a lack of adornment and, often, a neutral color scheme. It’s the second most popular style for remodeled kitchens, according to Houzz research. Each kitchen shows a different type of wood cabinetry. Which material would you choose for your kitchen?

1. Flat-Cut Red Oak on Island and Upper Wall Cabinets

Red oak is a popular hardwood in North America and a dominant species in U.S. forests. It has a distinctive grain and gets its name from the tree’s leaf color in the fall (which explains why, despite the name, this wood is not always red in color). It’s considered a timeless classic and used in furniture, flooring, cabinetry and architectural millwork.

“Flat cut” refers to the way the wood in this kitchen was cut. This method creates a cathedral pattern, sometimes called peaks, on the face of the board.

How it’s used. Designer Lisa Lev used flat-cut red oak on the kitchen island, upper wall cabinets and tall pantry cabinet. The gables — or sides of the cabinets — are also red oak and nicely frame the white cabinets. The island’s matching red oak toe kick creates a floating effect and a soft transition to the engineered hickory flooring. Lev’s clients did not want island stools, so she created built-in shelving for kids’ books instead.

Supporting elements. Lev used white to balance the striking red oak with engineered quartz countertops (Organic White by Caesarstone). They have a clean, modern aesthetic that doesn’t compete with the wood.

Flat-front white cabinets and a classic white hexagon tile backsplash keep the spotlight on the wood’s grain pattern. A slim three-quarter-inch countertop profile helps keep costs down, while simple stainless steel cabinet pulls quietly support the design. Vintage teak chairs (see the previous photo) add more wood warmth, while yellow pendant lights introduce a cheery note.

Why it works. The red oak’s beautiful flat-cut grain brings an abundance of natural texture to this contemporary space, creating an atmosphere that’s at once modern and organic.

Durability. Red oak is strong and resilient. Its rating on the Janka scale — a measure of wood’s hardness — is 1,290, which is considered medium. Red oak is a readily available species and the benchmark against which all other wood species are compared.

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Designing a Kitchen That Will Sell Your House For You

May 29, 2019 by cdiez Leave a Comment

Vincent Stokes, while writing for Realty Times, gives us that extra spark to design an even better looking kitchen area.

The kitchen is one of the most important rooms in a house when it comes to home value and appealing to buyers while trying to sell. For this reason, it’s important to pay special attention to your kitchen when preparing a house to sell or building a house for the first time. The following is a guide for how to build a modern, desirable kitchen that will work to sell your house for you.

Keep It Clean

Because the kitchen is a room that sees significant use, it can get grimy and worn down easily. Upkeep your kitchen in order to upkeep its value. When it does come time to sell, make it a point to deep clean it. Polish all surfaces and metal, including countertops and faucets. Go at tile to clean out grout. Keep a kitchen clean and well-maintained and it will be a major asset when you do go to sell the house.

Appliances

All appliances should be energy-efficient because energy efficiency is desired in modern homes. This is not only because it is good for the environment but also because it saves money over time. Look for appliances with Energy Star labels when shopping and consider estimated average yearly operating costs. Many modern kitchen designs also hide appliances, so a design incorporating that may be worth considering as well. Consider brand too, because at least in certain areas, brands that are considered too thrifty can bring down the perceived value of the property.

Cabinets

Cabinets are another major item in the kitchen that buyers pay attention to. Their color and how well they blend into the rest of the kitchen are important, as is their size. It is amazing what a difference painting your cabinets can make. You can undertake this project yourself or hire a professional to do it. Another thing you can do is replace cabinet handles, which is a smaller upgrade but will still make them look better.

Colors

There are a number of color schemes you can choose for your kitchen. You can also change those colors anytime you want with paint, for the most part. White and gray is in right now, as is wood and more natural-looking colors and surfaces. You can also get more creative and use brighter colors such as teal or yellow. Most colors can work in the right combination, but at the end of the day, more neutral colors are easier to sell down the road.

Lighting

Lighting is also important to consider. Get modern light fixtures that will look good with the rest of the kitchen and provide strong lighting throughout the room. Ensure fixtures use energy-efficient bulbs. Remove broken or dim bulbs and replace them with new ones. Under cabinet lighting can be a good investment as it is relatively inexpensive and provides more light to workspaces.

Consider Utility

The kitchen is going to be a major place to entertain and work in most homes. For this reason, it needs to be designed with utility in mind. Most people nowadays prefer kitchens with plenty of space, both in general and on the counters. Islands are usually a good idea to put in because they give great places for preparation or entertaining as well as provide additional countertop space. Whether you are preparing a large dinner for the holidays or even if you skip lunch, you want a kitchen that will work with you.

Worth It To Remodel?

If you are considering remodeling your house, whether to sell or just to update, remodeling your kitchen is always an option. As with any addition to a property, look at it from the perspective of a cost-benefit analysis. Don’t pour more money into a remodel than you expect it will increase the value of the home by, typically around 6% of the home’s value. When remodeling your kitchen, you always want to find the right people for the job. Get referrals and quotes before making a final decision.

You are presented with a lot of options when designing a kitchen. Break it down to each individual aspect so you don’t get overwhelmed and go in with a grand plan. You will end up with a gorgeous kitchen that will be the envy of buyers.

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