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As the year comes to a close, many homeowners find themselves eager to sell their properties. With the holidays fast approaching and tax deadlines just around the corner, motivated sellers are looking to finalize deals before the calendar turns. This urgency can create unique opportunities in the real estate market for both sellers and buyers. In this post, we will explore effective strategies that motivated sellers can implement to close their sales successfully before year-end deadlines. Understanding the Motivations of Sellers Homeowners have different reasons for wanting to sell before the end of the year. Some might need to relocate for a new job opportunity, while others may wish to downsize or upgrade. For instance, approximately 30% of sellers cite job-related moves as their primary motivation. Additionally, many sellers want to avoid the hassle of moving during the festive season, further increasing their urgency. By understanding these motivations, buyers and real estate agents can better tailor their approaches to meet sellers' needs. Timing is Everything The real estate market tends to slow down during the holidays. However, motivated sellers can turn this trend to their advantage by listing their homes at the right time. Research shows that homes listed during early November have a 20% higher chance of selling quickly compared to those listed in late December. By positioning their homes strategically during this window, sellers can attract buyers who are eager to finalize purchases before the holidays. Pricing Strategies for Quick Sales To facilitate quick sales, motivated sellers should adopt competitive pricing strategies. Conducting a thorough market analysis can help sellers identify the optimal price point that appeals to buyers without sacrificing profit. For example, selling at just 5% below market value can result in a quicker sale—homes priced competitively often sell 50% faster than those priced above market value. Enhancing Curb Appeal First impressions matter, especially in real estate. Motivated sellers should consider improving their home's curb appeal to draw potential buyers in. Simple enhancements, such as professional landscaping, repainting the front door, or installing updated outdoor lighting, can yield a notable difference. In fact, homes with improved curb appeal can sell for up to 10% more compared to similar homes with less attractive exteriors. A well-maintained front yard with vibrant flowers and greenery Staging the Home Staging a home can significantly impact how quickly it sells. Presenting the property effectively allows potential buyers to envision living there. This might involve decluttering, rearranging furniture, or even renting stylish items to enhance the overall aesthetic. Studies have shown that staged homes can sell for 6% to 10% more than their un-staged counterparts. Marketing Strategies to Reach Buyers In today’s digital world, effective marketing is vital for motivated sellers. Leveraging online platforms, social media, and real estate websites significantly broadens the audience. Including high-quality photographs and virtual tours can better showcase the property. For example, listings featuring professional photos receive 95% more views than those without. Collaborating with a knowledgeable real estate agent can streamline marketing efforts and ensure that homes reach the right potential buyers. Flexibility with Showings Sellers should be flexible regarding showing times to accommodate prospective buyers. A home that is readily accessible for viewings increases the chances of receiving offers. Hosting open houses and allowing private showings during evenings and weekends can maximize exposure and attract serious buyers. In fact, homes that allow for easy showings sell up to 40% faster according to recent studies. Offering Incentives To make their offers more appealing, motivated sellers might consider providing incentives to buyers. This could include covering part of the closing costs, offering a home warranty, or potentially a credit for minor repairs. Research indicates that homes with added incentives can attract offers more quickly , often resulting in sales prices closer to the asking price. Navigating the Closing Process Once an offer is on the table, motivated sellers must be ready to navigate the closing process smoothly. This means being responsive to requests for information and coordinating closely with their real estate agents to ensure all necessary documentation is ready. A streamlined closing process can help minimize stress, enabling sellers to finalize transactions well before year-end deadlines. Final Thoughts For motivated sellers, the end of the year is a prime opportunity to close deals before the holiday rush and tax deadlines. By understanding their motivations, adopting competitive pricing, enhancing curb appeal, staging effectively, and implementing solid marketing strategies, sellers can position themselves for success. Additionally, flexibility with showings and offering buyer incentives can further increase the chances of a quick sale. As the year draws to a close, proactive sellers can achieve their real estate goals and welcome the new year with confidence.

Top 5 Homebuyer Mistakes to Avoid This Summer in Houston 1. Skipping Pre-Approval One of the biggest mistakes homebuyers make is not getting pre-approved for a mortgage before starting their home search. This can lead to disappointment and wasted time. How to Get It Right: Start the process by getting pre-approved. This will give you a clear understanding of your budget and show sellers that you are a serious buyer. 2. Ignoring the Neighborhood Many buyers focus solely on the property and overlook the surrounding neighborhood. This can lead to dissatisfaction after the purchase. How to Get It Right: Research neighborhoods thoroughly. Consider factors such as schools, amenities, commute times, and future development plans. 3. Underestimating Additional Costs Homebuyers often underestimate costs beyond the purchase price, such as closing costs, property taxes, and maintenance expenses. How to Get It Right: Create a comprehensive budget that includes all potential costs associated with homeownership to avoid financial strain. 4. Rushing the Decision In a competitive market, buyers may feel pressured to make quick decisions, leading to buyer's remorse. How to Get It Right: Take your time to evaluate each property carefully. Make sure it meets your needs and aligns with your long-term goals. 5. Neglecting Home Inspections Skipping a home inspection can result in costly surprises after the purchase, such as hidden repairs or structural issues. How to Get It Right: Always invest in a thorough home inspection before finalizing your purchase to identify any potential problems. Conclusion Avoiding these common mistakes can help ensure a smoother homebuying experience this summer in Houston. By being informed and prepared, you can make a confident decision that aligns with your goals.

In today’s dynamic real estate environment, the choice to buy a home instead of renting is more important than ever, particularly in the bustling Houston, TX market. If you are uncertain about homeownership, knowing its benefits can help you make a confident decision. Owning a home is not just about having a place to live; it is a powerful way to build wealth, stability, and peace of mind. With the right understanding, it becomes easier to see how this investment can shape your future. Building Equity: Your Financial Foundation One of the strongest reasons to buy a home is the chance to build equity. When you pay rent, your money contributes to someone else’s investment. In contrast, owning a home lets you accumulate equity, which is calculated as the difference between your home's value and your mortgage balance. Every mortgage payment boosts your ownership stake. For example, if you purchase a home for $300,000 and put down 20%, you owe $240,000. As your home appreciates—let’s say by 4% annually—that value would rise to $312,000 after one year, giving you $72,000 in equity. Over time, this increases even more as your loan balance decreases and your property value rises, potentially becoming a significant financial asset for future opportunities like college tuition or retirement. Stability and Freedom Homeownership offers unparalleled stability. Renters often face annual rent hikes and the risk of being displaced by landlords. Owning your home means you have control over your living situation. Consider this: when you buy a home, you can renovate, decorate, or even start a garden, tailoring the space to your taste. Feeling secure in your living environment fosters a sense of belonging and can improve your overall quality of life. Protect Against Rising Rental Costs The rapidly increasing rental prices in Houston highlight the value of owning rather than renting. Houston has seen rent rise by an average of 5% per year. This means a $1,500 monthly rent today could jump to $1,575 next year. However, homeowners who secure a fixed-rate mortgage can shield themselves from this fluctuation. By locking in your mortgage rate, your monthly payments remain stable. This predictability is especially beneficial for budgeting, as you will know exactly what to expect month to month without sudden rent increases. Financing Options: More Accessible Than Ever Gone are the days when you needed a hefty down payment to buy a home. Today, various financing options cater to a range of financial circumstances. For example, FHA loans allow down payments as low as 3.5%, while VA loans offer no down payments for eligible veterans. Even USDA loans can assist homebuyers in rural areas with little to no upfront costs. These programs eliminate barriers and make homeownership more achievable for first-time buyers. The Value of Professional Guidance The real estate market can be overwhelming, which is why working with a licensed real estate agent should be your priority. These professionals can help you navigate the complexities of home buying. A skilled agent can identify the best loan programs for you and negotiate favorable terms. They will also be vital in spotting potential pitfalls, including hidden costs or red flags in property conditions, ensuring that you get the best deal possible. A Personal Investment in Your Future Buying a home transcends financial implications; it is a personal investment that shapes your future. Homeownership provides opportunities for generational wealth that can be passed down to your children and beyond. Imagine hosting family gatherings in a home that is truly yours, where memories are created and cherished. The pride of ownership enhances not only your comfort but also your emotional well-being. A cozy Houston home with a charming yard, perfect for families. The Bottom Line As you contemplate the shift from renting to owning, consider that the Houston market is filled with opportunities that can benefit you. By investing in a home, you can build equity, enjoy a sense of stability, and protect yourself against rising rental costs. With numerous financing options available, now is the ideal time to take the plunge into homeownership. Collaborating with a licensed real estate professional can guide you through every step of this journey. Take the reins of your future by investing in a home today. While the process may seem intimidating, the rewards of homeownership can be transformative. Embrace the freedom, stability, and financial growth that come with owning your own home—a choice that will be worth it. A scenic Houston neighborhood showcasing unique homes against a beautiful sunset. Your Next Steps Consider the numerous benefits of buying a home, including the equity you can build and the stability it offers. Explore your options, partner with a knowledgeable professional, and envision the security that comes with ownership. Your future is waiting—unlock the door to homeownership today!

When it comes to buying or selling property, the stakes can be incredibly high. The financial investment, legal complexities, and emotional factors involved create a landscape fraught with potential pitfalls. That's why hiring an experienced real estate agent isn't just a luxury; it's essential. This blog will delve into how a professional agent can facilitate transactions, ensure secure dealings, and optimize your financial outcomes. We'll also explore the risks associated with going solo in the real estate market and why it often leads to costly mistakes. The Value of Expertise One of the primary advantages of hiring a professional real estate agent is their expertise in the market. Experienced agents are well-versed in local trends, property values, and the nuances of different neighborhoods. They can provide invaluable insights that a layperson might overlook. For instance, an experienced agent can identify an undervalued property that meets your criteria, allowing you to make a more informed purchase. Conversely, if you're selling, they can help you set an optimal listing price based on current market conditions, maximizing your return. In contrast, navigating the market yourself may lead to mispricing your property—either too high, resulting in a prolonged sale, or too low, leading to financial loss. According to a National Association of Realtors report, homes sold with the help of a professional agent typically fetch 13% more than those sold by owners. Streamlined Processes and Negotiation Skills An experienced real estate agent simplifies the complex buying or selling processes. They handle everything from paperwork to scheduling showings. This not only saves you time but also reduces stress. Agents know what documents are required and when, preventing potential legal issues from arising due to incomplete or incorrect submissions. Negotiation is another critical area where agents excel. Whether you're buying or selling, an experienced agent has honed their negotiation skills through years of practice. They understand how to read the room, gauge the other party's motivation, and strategize accordingly. For example, if you’re purchasing a home, an agent can negotiate repairs or concessions that can save you money and hassle after the sale. On the other hand, sellers benefit from agents who can skillfully negotiate offers and encourage buyers to increase their bids. Legal Safeguards Real estate transactions come with their fair share of legal complexities. An oversight can lead to significant legal consequences, including financial loss or litigation. An experienced real estate agent ensures that you're protected from these risks by ensuring compliance with local laws, preparing necessary forms, and understanding complex contract language. Through their knowledge of property law, agents can guide you away from potential pitfalls. For example, they can identify zoning issues or property liens that could complicate your purchase or sale, saving you from making a potentially ruinous mistake. Without an agent, individuals often overlook these critical details, leading to costly mistakes. In fact, over 30% of people who sold their homes without an agent reported facing challenges during the transaction, according to recent studies. Avoiding Emotional Traps Buying or selling a home is an emotional experience. Homeowners often have personal attachments to their property, while buyers are emotionally invested in finding the perfect home. An experienced agent acts as a impartial third party, helping to manage emotions that can cloud judgment during negotiations. For example, a seller may want to reject a reasonable offer due to sentimental value, but an agent can provide a realistic assessment of the market that encourages the seller to see the bigger picture. Similarly, a buyer may be willing to overlook important flaws due to emotional attachment. A strong agent will guide them to make informed decisions that benefit them in the long run. The Risks of Going Solo Attempting to navigate real estate transactions without an agent can seem attractive due to the savings on commission fees. However, what many fail to recognize are the potential savings lost due to missteps. Individuals often lack access to crucial market data or insights, which can lead to mispricing, prolonged sales, or bad investment choices. Furthermore, consider the time commitment. Real estate transactions require significant effort in research, showing homes, and dealing with paperwork. For most individuals, the time invested could be far greater than the commission saved. Statistics illustrate this risk starkly. A study by the National Association of Realtors showed that FSBOS (for sale by owner) transactions constituted only around 8% of home sales, clearly indicating that most sellers prefer the safety net that professional agents offer. Conclusion Hiring an experienced real estate agent is not merely an option; it's an essential component when navigating the complex world of property transactions. From expert market insights to legal safeguards and effective negotiation skills, the benefits of having a professional in your corner are numerous and undeniable. Don't leave such a significant investment and your hard-earned money in the hands of inexperience. It's vital to ensure that your transaction is handled smoothly and securely, maximizing your financial outcome while minimizing risks. Call to Action: Don’t leave your investment in hands inexperienced. Contact me today and discover how I can help you achieve the best possible real estate transaction, whether you're buying or selling your property. Close-up view of a real estate sign with a sold banner Eye-level view of a home showcasing a welcoming front yard

Your credit score may seem like just a number, but it has a powerful impact on your financial life, especially when securing a mortgage. Understanding how your credit score works can give you the confidence to make informed decisions as you work towards home ownership. What is a Credit Score? A credit score is a number that indicates how likely you are to repay borrowed money. It ranges from 300 to 850, with higher scores showing less risk to lenders. A great score often leads to better loan terms, lower interest rates, and easier approval. Key factors that affect your score include payment history, outstanding debts, the length of your credit history, types of credit accounts, and how often you apply for new credit. Knowing your credit score is essential because it is one of the first aspects lenders review when assessing your mortgage application. By checking your score, you can evaluate whether you are ready to take the leap into home ownership. How Credit Scores Influence Mortgage Rates Credit scores greatly influence the interest rate you can secure on your mortgage. Generally, borrowers with higher scores get lower rates, while those with lower scores face higher rates. For instance, a borrower with a credit score of 760 or higher might get a mortgage rate as low as 3%, while someone with a score of 620 could be quoted a rate as high as 5%. Over 30 years, even a small difference in rates can lead to huge differences in costs. Consider a $300,000 mortgage: Interest Rate of 3% : Monthly Payment = $1,264 Interest Rate of 5% : Monthly Payment = $1,610 The person with the lower interest rate saves over $346 each month. Over the life of the loan, the difference in interest paid would amount to around $125,000. Calculator used for determining mortgage rates based on credit scores The Impact on Mortgage Approval Your credit score plays a crucial role in determining whether you can access certain mortgage types. Many lenders set minimum credit score requirements. If your score doesn’t meet these, you might struggle to get a mortgage. For example, conventional loans typically require a minimum score of 620. In contrast, government-backed loans, like FHA loans, may accept scores as low as 500 under specific conditions. Knowing these requirements helps you target suitable financing options that match your credit profile. Buying Power and Credit Scores Credit scores not only shape mortgage terms but also affect your overall buying power. A higher score can allow you to qualify for larger loan amounts, enabling you to explore pricier homes or better neighborhoods. For example, a borrower with a score above 700 might qualify for a $400,000 mortgage, while a borrower with a score around 600 may be limited to only $250,000. This financial limitation can force you to hassle through properties that are less ideal or require more significant down payments. Improving your score can unlock more favorable lending choices. Tips to Improve Your Credit Score Improving your credit score can have a meaningful impact on your mortgage options. Here are practical steps to boost your score before applying for a mortgage: Pay Your Bills On Time: Make sure all bills, including utilities and credit charges, are paid promptly to help build a positive payment history. Reduce Debt: Keeping high credit utilization can bring your score down. Aim to carry less than 30% of your credit limit. Check Your Credit Report: Regularly review your credit report for errors or incorrect information. Correcting even a minor error can result in a score increase. Limit New Credit Applications: Each new credit request can temporarily lower your score. Try to reduce applications as you get ready to seek a mortgage. Establish a Good Credit Mix: Having various types of credit, like credit cards and personal loans, can help lift your score. Taking these proactive steps can pay off when you apply for a mortgage. Empowering Your Path to Home Ownership In your journey to buy a home, your credit score is a vital component that can either ease your way or present obstacles on your path to mortgage approval. By understanding how credit scores affect mortgage rates and your buying power, you can take calculated actions that position you for success. Monitoring your score, addressing debts, and following sound financial practices will serve you well as you navigate the complexities of mortgages. Seize control of your financial journey, and bring your dream of home ownership closer to reality. Neighborhood demonstrating potential home purchases for qualified buyers With this knowledge, you'll feel more equipped to handle the challenges of home buying. Your credit score can be a helping hand or a stumbling block; choose to make it work for you.

From wildfires to floods, the past few years have brought a historic number of devastating climate and weather events to the United States. In 2023 alone, there were 28 individual weather-related disasters that caused at least $1 billion in damages each.1 These events triggered a huge influx of home insurance claims, and analysts expect the increase in both catastrophes and claims to continue. Adding to the problem, construction labor and supply costs have risen, making it more expensive to repair affected homes. Consequently, home insurance rates have surged: In 2024, Bankrate reports, premiums are already up an average of 23%, following double-digit increases the previous year.2,3 In disaster-prone regions, the situation is even more challenging. Some insurers have pulled out of risky areas entirely, and many of those that still offer policies in high-risk areas have doubled or even tripled their premiums.4 For most homeowners, comprehensive home insurance coverage is crucial for financial security—but massive rate increases can turn a once-affordable home into a financial burden. They can also pose a serious challenge for sellers. A home insurance policy is typically required to get a mortgage, and, in some hard-hit regions, we’re seeing sales fall through or homes sit on the market because insurance policies are unattainable or too expensive.5,6 But don’t panic! While these broader trends may be out of your control, there’s still plenty you can do to save. Here are our top six strategies to slash insurance premiums while maintaining the protection you need. 1. SHOP AROUND Getting multiple quotes is a smart move for many major purchases, including home insurance. We recommend reviewing at least three estimates before you commit to a policy. You can get quotes either by reaching out to insurers directly or by working with an independent insurance broker.7 You’ll need to provide detailed information about the property you’re insuring and your claims history. Make sure you read policies carefully before you choose. Sometimes, a policy can look like a better deal at first glance but turn out to have important coverage gaps. Be sure to consider how much the policy will pay out to repair or replace your home and review caps on personal possession and liability claims. It’s also smart to read reviews from policyholders (Trustpilot is a good place to start) and ratings published by organizations like the Better Business Bureau and J.D. Power. For help choosing the right policy, reach out to us for a list of trusted insurance professionals. 2. INCREASE YOUR DEDUCTIBLE The size of your deductible—which is the amount you pay before your insurance coverage kicks in on a claim—is a major factor in your insurance cost. A low deductible, such as $500, comes with higher premiums, while a higher deductible, like $2,500 or even $5,000, costs less on a monthly basis. In some cases, you may be able to customize your coverage further by designating a different deductible for certain kinds of claims, such as those caused by named storms or natural disasters. If you are confident that you have enough in savings to cover that initial outlay if needed, choosing a higher deductible can help you save significantly over the long term. According to Nerdwallet, raising your deductible from $1,000 to $2,500, for example, could save you an average of 11% each year.8 3. BUNDLE MULTIPLE TYPES OF INSURANCE Insurers want to get as much of your business as possible, so most offer significant discounts if you bundle your home and auto insurance, meaning that you package the two policies together. With some insurers, you can get even higher savings by bundling more than home and auto—RV, boat, jewelry, and life insurance are potential options to consider. According to US News and World Report, insurers typically offer customers who bundle home and auto insurance 10-25% savings on monthly premiums. This approach also has other advantages: It cuts down on your paperwork, and in some cases—like if a storm damages both your home and car—you may be able to pay just one deductible instead of two when you file a claim.9 However, before you sign on the dotted line, remember strategy #1 and be sure to shop around. In some cases, bundling isn’t the cheaper option, and bundling deals vary between companies. It’s also critical to carefully check that the bundled coverage offers everything you need. 4. ASK ABOUT AVAILABLE DISCOUNTS Did you know that being a nonsmoker might qualify you for a home insurance discount?8 Some insurers offer some surprising incentives for policyholders who pose a statistically lower risk of filing a claim. In the case of nonsmokers, that’s because of the decreased risk of a home fire. Many carriers also offer discounts to military-affiliated families, homeowners in certain professions, such as teachers or engineers, or recent homebuyers. Sometimes, you can also save by opting for paperless billing or paying your premiums for a full year upfront.10 Since available discounts vary significantly between insurers, the best strategy is to simply ask a representative for the full list of available discounts so you can see what cost savings might be available to you. 5. AVOID MAKING SMALL CLAIMS Worried that your premiums will rise significantly in the future? Try to avoid making a claim unless truly necessary. Many insurers offer discounted rates to policyholders who go a certain number of years without filing a claim, and filing multiple claims typically results in large increases.10 If you file too many, you may even risk nonrenewal of your policy.11 Since the cost of even a small premium increase can add up significantly over time, if you have minor damage to your home—for example, if a few shingles blew off your roof in a windstorm—it may be a wiser long-term financial decision to pay out of pocket instead of filing a claim. If the cost of the repair is less than your deductible, it never makes sense to file, and if it’s just slightly above your deductible, it’s also usually best to pay for the repairs yourself. Additionally, always be sure to review your policy before you make a claim. Even claims that are denied can count against you, so it’s not worth filing if the damage is clearly excluded from coverage.11 If you find yourself in this situation, feel free to reach out for a list of reasonably-priced professionals who can help with home repairs. 6. BE STRATEGIC ABOUT HOME IMPROVEMENTS Insurance premiums alone may not be the deciding factor for a home improvement project, but it’s important to know how renovations could impact your rates—for better or worse. For example, some upgrades and repairs can reduce your premiums by making your home safer or less prone to certain types of damage. These include:12 Upgrading your electrical system Updating your plumbing Installing a monitored security system Adding a fire sprinkler system Replacing the roof On the other hand, some upgrades can raise premiums significantly, either because they increase the value of your home (and therefore the cost to replace it) or because they pose a hazard. These include:12 Installing a swimming pool or other water features Building an extension or expanding your living space Upgrading materials, like flooring or countertops Adding a fireplace or woodstove Whether or not your planned renovations are on either of these lists, it’s wise to inform your insurer about changes you make to your home—otherwise, you may risk gaps in coverage. And you’re always welcome to check with us before you begin any home improvement project to find out how it could impact the value and resale potential of your home. BOTTOMLINE: Protect Your Investment Without Sacrificing Enjoyment of Your Home Getting the coverage you need for financial security without overpaying can be a tricky balance, especially in today’s environment. But remember, while it’s important to find the best deal you can, home insurance isn’t an area to skimp on. For advice on your specific risks and the type of coverage you need, we recommend consulting with a knowledgeable insurance professional. We’re happy to connect you with a trusted adviser in our network. And if you’re considering a home renovation, feel free to reach out for a free consultation on how it might affect your property value (and your premiums). The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, insurance, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: Climate.gov – https://www.climate.gov/news-features/blogs/beyond-data/2023-historic-year-us-billion-dollar-weather-and-climate-disasters Bankrate – https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-cost/ Policygenius – https://www.policygenius.com/homeowners-insurance/home-insurance-pricing-report-2023/ CNN – https://www.cnn.com/2023/09/20/business/insurance-price-increase-risk-climate-first-street-dg/index.html BBC – https://www.bbc.com/news/business-66367224 US News – https://realestate.usnews.com/real-estate/articles/how-climate-change-could-impact-your-home-value Nerdwallet – https://www.nerdwallet.com/article/insurance/how-to-shop-for-homeowners-insurance Nerdwallet – https://www.nerdwallet.com/article/insurance/save-on-homeowners-insurance US News and World Report – https://www.usnews.com/insurance/homeowners-insurance/how-to-bundle-home-and-auto-insurance Marketwatch – https://www.marketwatch.com/guides/insurance-services/how-to-save-on-homeowners-insurance/ Bankrate – https://www.bankrate.com/insurance/homeowners-insurance/when-to-file-a-home-insurance-claim/#when Bankrate – https://www.bankrate.com/insurance/homeowners-insurance/home-insurance-and-renovations/

When you’ve lived somewhere for many years, it can be tough to say goodbye. But if you (or a loved one) currently have a home that is bigger than necessary or is too high maintenance, it may be time to trade unused square footage for a smaller, more manageable space. Take it from the downsizers who’ve been there: Although living small might require some adjustments, it can also be liberating––especially if you’re in a stage of life where past responsibilities have given way to new possibilities and adventures. In fact, many downsizers report feeling invigorated by the change, according to real estate journalist and author Sheri Koones. “It scares people to think of moving into a smaller space,” said Koones to the Associated Press. “But every single person I interviewed who has made the transition says they are so happy they did.”1 The key is to find somewhere you can live well and move around comfortably, without feeling overly restricted. If you like the idea of aging in place or are already in your golden years, you may also want to look for signs that a new home can conveniently age with you. With that in mind, we recommend focusing your search around three key factors: desired lifestyle, optimal design, and long-term accessibility. Read on for specific tips, then call us for a free consultation. We can help you identify the types of homes that are best suited to living large with less. Do you have a loved one whose housing needs have changed? Share this information to help start a conversation about the benefits of downsizing. DESIRED LIFESTYLE The best part of downsizing is the lifestyle you unlock when you trade square footage for convenience. With fewer chores and home maintenance tasks to worry about, you can instead channel your energy into other pursuits. For example, instead of spending your afternoons working in the yard or cleaning, you can catch up on the news, read a bestseller, start a new craft project, or pursue other hobbies. You may even be able to travel or spend more time with friends and family. Research shows that individuals over the age of 65 report more life satisfaction when they have the opportunity to spend time around children, talk with friends, socialize in community centers, volunteer, or engage in hobbies. But that can be hard to do regularly when you’ve got a home that needs constant attention or you live far from your community.2 As you compare potential homes, keep in mind the type of lifestyle you envision. Do you plan to travel? If so, a home with extra security, such as a condominium or gated community, may give you some welcome peace of mind. Or do you plan to have friends and family stay overnight? In that case, you may want to look for a floor plan with flex space or a property that has access to separate guest suites. Alternatively, a senior community that offers catered meals and housekeeping may be a better choice if you or a spouse need extra support. Action item: Grab a pen and take some time to envision what your ideal future might look like. Write down the activities and hobbies you hope to add to your life or continue with going forward, as well as the chores and responsibilities you’d love to drop. We can use those answers to help shape your house hunt. OPTIMAL DESIGN Even though your new home will be smaller, that doesn’t mean it has to feel cramped. As Koones explains, “The key is to have a home that is efficiently designed, both in terms of energy use and in terms of space.”1 Look for features that can help make a space feel bigger, like high ceilings, large windows, and an open layout. Built-in shelving that extends all the way to the ceiling can also make a small room feel more expansive by helping to draw the eye upward. The same goes for highly placed window treatments and striped or mural-style wallpaper, says interior designer, Kati Greene Curtis. “You’ll feel like you’re walking into the scene,” said Curtis to the Washington Post.3 Efficient layouts with flexible, multi-purpose rooms and few, if any, hallways work especially well for small-scale living. You can also limit dead space in a home by steering clear of layouts with awkward corners, unusable nooks, and other space-eating design elements. In addition, look for features that support a simpler, lower-maintenance lifestyle, such as easy-care floors, durable countertops, and bare walls with little, if any, crown molding. Don’t write off a home too soon, though, if it feels narrow or congested because of outdated design or poor staging. Cosmetic issues that visually shrink a space are often easy to fix. For example, you can instantly make a room feel bigger just by painting it a lighter shade. Adding mirrors and swapping out heavy curtains for sheer ones can also be effective. Plus, utilizing multipurpose furniture with hidden storage is a great way to maximize space. Action item: Make a note of your must-keep furniture and other items. Then pull out a measuring tape and write down the dimensions. Once it’s time to visit homes, we’ll have a more accurate sense of what will fit and how much space you’ll need.To get your creative juices flowing, you may also want to flip through some design magazines that specialize in compact living or catalogs that feature space-saving furniture and accessories. If you give us a list of your favorite features, we can use it to pinpoint homes that are a good match. LONG-TERM ACCESSIBILITY Buying a home that you can age well in can be a great way to boost your health prospects and happiness. According to the U.S. Department of Housing and Urban Development (HUD), homeowners who age in place instead of in an institutional environment not only save money over time, they also enjoy greater health and emotional benefits.4 Aging in place is also popular. According to survey findings from the National Poll on Healthy Aging, the vast majority of adults between the ages of 50 and 80 would prefer to age in their own homes.5 But even though many adults want to age in place, only 34% of surveyed adults currently live in a home with the features to make it possible.5 If you’re already in the second half of your life, then it’s smart to prioritize accessibility now, even if you’re highly mobile. Choosing an accessible home will improve your odds of staying put for longer. Plus, you never know when you might need an accessible light switch, handrails in the bathroom, or a seat in the shower, says Sheri Koones. “Yes, older people with disabilities need them, but even younger people break a leg skiing, or have situations where they want a barrier-free shower.”1 As you consider your options, try to imagine what your needs might be as you get older and be proactive in identifying potential obstacles, recommends the National Council on Aging (NCOA).6 For example, a single-level home or one with wide enough stairs for a stair lift or access to an elevator may be a more practical choice than a home with lots of narrow stairs. Alternatively, a home with at least one ground-level bedroom and bathroom may also work well for you. Consider your needs outside the home, as well: If you frequently visit the doctor, grocery store, or community center, for example, then you may benefit from choosing a property nearby. Action item: Review the checklist below, adapted from the National Institute on Aging’s home safety worksheet, or download the full version from the agency’s website.7 Highlight the items that are most important to you. We can reference these guidelines as we consider potential homes and suggest ways to adapt a property to meet your current or future requirements. HOME SAFETY CHECKLIST 7 ☐ If a walker or wheelchair is needed, can the entrances to the house be modified — perhaps by putting in a ramp to the front door? ☐ Are there any tripping hazards at exterior entrances or inside the house? ☐ Are the hallways and doorways wide enough to accommodate a wheelchair if needed? ☐ Does the home have at least one ground-floor bedroom and bathroom? ☐ Are there any staircases, and if so, could they accommodate a stair lift? ☐ Is the house well-lit, inside and out, particularly at the top and bottom of stairs? ☐ Could handrails be installed on both sides of the staircase? ☐ Is there at least one stairway handrail that extends beyond the first and last steps on each flight of stairs? ☐ Are outdoor steps sturdy and textured to prevent falls in wet or icy weather? ☐ Are there grab bars near toilets and in the tub or shower? ☐ Have a shower stool and hand-held shower head been installed to make bathing easier? ☐ Is the water heater set at 120° F to avoid scalding tap water? ☐ Are there safety knobs and an automatic shut-off switch on the stove? ☐ Have smoke and carbon monoxide alarms been installed near the kitchen and in all bedrooms? ☐ Are there secure locks on all outside doors and windows? BOTTOMLINE You don’t have to compromise on comfort to downsize successfully. We can help you strategize your next move and identify the best new home for you—whether that’s a smaller home for rent or another one to call your own. We take pride in offering a full-service real estate experience and assisting our clients through all stages of the real estate journey. And we’ll go the extra mile to maximize your current home’s sales price so that you’re set up for financial security. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: Associated Press (AP) – https://apnews.com/article/lifestyle-f094372b46bae82020c174907eb953c0 Healthcare (Basel) – https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10671417/ Washington Post – https://www.washingtonpost.com/home/2023/02/07/make-small-room-appear-larger/ HUD User – https://www.huduser.gov/portal/periodicals/em/fall13/highlight2.html National Poll on Healthy Aging – https://www.healthyagingpoll.org/reports-more/report/older-adults-preparedness-age-place National Council on Aging (NCOA) – https://www.ncoa.org/adviser/medical-alert-systems/downsizing-for-aging-in-place/ National Institute of Health (NIH) – https://www.nia.nih.gov/sites/default/files/2023-04/worksheet-home-safety-checklist_1.pdf

One of the best parts of owning a home is the freedom to make it truly your own with design choices that reflect your personality and lifestyle. Whether you lean toward contemporary design or a farmhouse aesthetic, your home is your canvas. Even so, it’s always smart to think about the long-term impact those decisions might have on your home’s value. Choosing over-personalized or unpopular materials and finishes could make your home less appealing to future buyers. And selecting out-of-style or overly-trendy elements could cause your home to feel dated quickly. To help inspire your design choices, we’ve rounded up some of the top trends we’re watching in 2024. Keep in mind, not all of these will work well in every house. If you plan to list or renovate your property, give us a call. We can help you realize your vision and maximize the impact of your investment. 1. Spa-Like Bathrooms We could all use a little more relaxation in our lives—so why not bring the spa into your home? In 2024, more homeowners will remodel their bathrooms to turn them into personal oases.1,2 If you’re undertaking a renovation, consider upgrading fixtures and materials. Handmade tile and custom cabinetry can add a touch of style and luxury. Trade stark whites for warm neutrals to create a more relaxed feel—think light wood tones, creams, and beiges.3 Complete the look with soft ambient lighting from a backlit mirror or pair of decorative sconces.2,3 If you want to maximize the mind-body benefits of a relaxing bathroom (and have the budget to spare), you might consider installing a steam shower, infrared sauna, or cold plunge tub.3 Not looking to spend as much? Even minor upgrades like a massaging showerhead or heated towel bar can add some pampering to your morning routine.3 But remember, if you’re modifying your bathroom, it’s always wise to work with experienced and licensed professionals to avoid water damage that could lead to costly repairs. We can refer you to a trusted contractor for help. Photo by – Browse bathroom photos 2. Maximalist Decor In 2024, maximalism is back in vogue, contrasting the neutral aesthetic that dominated design in recent years. While maximalism can be summed up as “more is more,” there’s nothing sloppy or cluttered about this look. Instead, it’s all about intentional curation.4 Hallmarks of maximalist style include rich and saturated colors, bold wallpaper, statement rugs and furniture, and lots of art. And forget matching—maximalist interiors often include plenty of contrasting colors, textures, and patterns selected to complement one another.4 If you’re trying to embrace maximalism on a budget, check out thrift stores. They’re often a great place to find unique furniture, colorful rugs, and interesting art or collectibles. Before you invest in rolls of vintage wallpaper, though, it’s important to note—if you plan to sell your home in the near future, the maximalist look won’t appeal to every buyer. We typically advise sellers to remove clutter and personal items to help buyers imagine their own future lives within the home. Sometimes, that means repainting or redecorating in a more neutral palette. Of course, this shouldn’t stop you from embracing your own style now—just be aware that you may need to walk back your aesthetic prior to selling. We can advise you when the time comes. Photo by Noz Design – Search living room design ideas 3. Japandi Style Not quite ready to embrace maximalism? Japandi style, which blends Japanese and Scandinavian influences, offers a more subdued approach that still has plenty of character. The look dates back about 150 years to a time when many Scandinavian designers were traveling to Japan for inspiration.5 Japandi style brings together clean lines, simplicity, and a focus on natural elements and light. It emphasizes the beauty in imperfection, or “wabi sabi,” and a deep connection to Mother Earth. And like Scandinavian decor, the look prioritizes comfort and a sense of sanctuary in the home.5 Interested in playing with Japandi? Common features include calming color palettes and organic materials like raw wood and bamboo. Try softening harsh edges with softer textures, like cozy blankets and ceramic pieces. The look also minimizes clutter, but that doesn’t mean you need to be a minimalist. Instead, Japandi style embraces storage solutions like baskets, folding screens, and sofas with built-in storage to give everything a place.6 If you’d like some help implementing Japandi-style organization in your home, contact us for a list of recommended professionals. Photo by Eric Miller Interiors – Discover bedroom design inspiration 4. Mixed Metals Mixing metals used to be a “no-no.” But in 2024, it’s definitely a “yes.” According to designers, mixing the colors and finishes of metal fixtures and hardware can bring visual interest to a room—as long as you go about it the right way.1,7 The most important rule to keep in mind is to stay away from near matches, like brass and gold—that’s more likely to look accidental than intentional. Instead, go for bold contrast: Think polished nickel and matte black.7 Some designers recommend using each metal at least twice in a room to make it look cohesive. Another good rule of thumb is to stick to two types of metals in a small room and two to three in a larger space.7 Finally, you might think about playing with undertones (brass is warm, chrome is cool) to change the “temperature” of a room. And don’t be afraid of a little shine—many designers predict that a retro, high-polished look will replace matte finishes in 2024.8 Want some help sourcing fixtures and hardware in a variety of finishes? Reach out for a list of our favorite retailers. Photo by Jessica Koltun Home – More bathroom photos 5. Wood Cabinetry And Accents The all-white kitchen has been ubiquitous in recent years. But in 2024, classic wood cabinetry is back in a big way.9 In fact, industry professionals surveyed by the National Kitchen & Bath Association predict that wood cabinets will be more popular than white in the next three years.10 Natural wood tones offer a sense of warmth and natural beauty.11 And today’s cabinets aren’t anything like the heavy, dated versions of the past. Instead, light to medium versions—like white oak and walnut—and warmer undertones are trending.9 The addition of wood-grain accents to painted kitchen cabinets—like with a contrasting island or range hood—is another popular option.12 And wood continues to be a favored choice for flooring. A recent survey found that 40% of homeowners opted for either hardwood or engineered wood when renovating their kitchen floors.13 You can also expect to see more wood in bathrooms in 2024. According to Houzz, last year, wood vanities surpassed white in popularity for the first time in recent years, and designers expect the trend to continue.12 While white countertops and walls still dominate bathrooms, a wood-grained vanity brings a relaxed, organic element into the space. Dreaming about new cabinets or hardwood floors? We’d be happy to share a list of recommended trade professionals who can help. Photo by Great Rooms Building Group – Look for kitchen pictures 6. Timeless Renovations In its latest Kitchen Trends Study, Houzz found that “nearly half of homeowners (47%) opt for a timeless design as a sustainable choice during renovations.” Respondents cited long-term cost effectiveness and environmental consciousness as their main motivators.14 In a rapidly changing, technology-driven world, it’s no surprise that homeowners want a nurturing space with lasting appeal—especially if they plan to stay in their homes for years to come.12 Traditional materials and quality craftsmanship lie at the core of timeless design, which some designers are calling “quiet luxury.”15 Think of enduring classics, like hardwood floors, hand-crafted tiles, and marble countertops.12 A timeless color palette will also often include warm neutrals and muted shades of blue and green.15 If you’re thinking about remodeling, it’s wise to incorporate as many classic elements as you can. These stylistic choices tend to hold up well over time, which can prolong the life of your investment and make it easier to sell your home down the road. If you’d like advice on an upcoming project, contact us for a free consultation. Photo by REFINED LLC – More entryway photos BEAUTIFY YOUR HOME WHILE BOOSTING ITS VALUE If you’re thinking about making design changes—whether that’s repainting or a full remodel—it’s important to be informed about how your choices could impact your home’s resale potential. Buyer preferences can vary significantly based on your home’s neighborhood and price point. Before you begin your project, reach out to discuss your plans and how they could impact the value of your home. The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: HGTV – The Spruce – The Spruce – Homes and Gardens – The Spruce – House Beautiful – The Spruce – The Spruce – Good Housekeeping – Better Homes and Gardens – Real Simple – Houzz – Houzz – Houzz – Better Homes and Gardens –

Not long ago, home sellers were in their heyday, as historically-low mortgage rates triggered a real estate buying frenzy. However, the Federal Reserve shut down the party when it began raising interest rates last year.1 Now, it’s not as simple to sell a home. While pandemic-era homebuyers were racing the clock—trying to lock in a low mortgage rate and gain a foothold in the market—current buyers are more discerning. Higher prices and mortgage rates have pushed their limits of affordability, leading them to prioritize cost, condition, and overall value.2 The reality is, home inventory remains low, so most properties will still sell with some basic prep, the right price, and a good real estate agent. But owners who go the extra mile are more likely to sell faster and for a higher amount. If you have plans to sell your home and want to net the most money possible, this list is for you. Here are our top seven strategies to attract the best offers and maximize your real estate returns. 1. UNDERGO A PRE-LISTING INSPECTION Many homebuyers hire a professional to complete a home inspection before they close. But did you know that a seller can order their own inspection, known as a pre-listing inspection, before they put their home on the market? Having a pre-listing inspection on hand and ready to share shows interested buyers that you’re committed to a transparent transaction. This can help you market your home, strengthen your negotiating position, and minimize roadblocks to closing.3 Of course, it’s always possible that a pre-listing inspection—which looks at the home’s major systems and structures, among other things—could turn up a significant problem. This does carry some risk, as you’ll be required to either fix or disclose any issues to potential buyers. However, in most cases, it’s better to know about and address deficiencies upfront than to find out mid-transaction, when it could cost you more in the form of concessions, a delayed closing, or a canceled sale. We can help you decide if a pre-listing inspection is right for you. And if it identifies any concerns, we can advise on which items need attention before you list your home. 2. CONSIDER STRATEGIC UPGRADES Embarking on major renovations before putting your home on the market doesn’t always make financial (or logistical) sense. However, certain upgrades are more likely to pay off and can help elevate your home in the eyes of buyers. For example, refinishing hardwood floors results in an average 147% return on investment at resale and new garage doors typically pay for themselves.4 Similarly, research shows that professional landscaping can boost a home’s value by as much as 20%.5 Often, even simpler and less expensive fixes can make a big difference in how your home comes across to buyers. A fresh coat of paint in a neutral color, modern light fixtures and hardware, and new caulk around the tub or shower can help your property look its best.5 But before you make any changes to your home, reach out. We know what buyers in your neighborhood are looking for and can help you decide if a particular investment is worthwhile. 3. HIRE A HOME STAGER To get standout offers, you need potential buyers to fall in love with your home—and they’re much more likely to do so if they can envision themselves in the space. That’s where home staging comes in. Staging can include everything from decluttering and packing away personal items to bringing in neutral furniture and accessories for showings and open houses. According to the National Association of Realtors, home staging can both increase the dollar value of home offers and help a property sell faster. In fact, 53% of seller’s agents agree that staging decreases the amount of time a home spends on the market, and 44% of buyer’s agents see higher offers for staged homes.6 There’s plenty of strategy and research behind the process, so it’s smart to consider a professional. Reach out for a connection to one of our recommended home stagers who can help your property show its full potential. 4. EMPLOY A COMPETITIVE PRICING STRATEGY While it’s tempting to list your property at the highest possible price, that approach can backfire. Homes that are overpriced tend to sit on the market, which can drive away potential buyers—and drive down offers.7 Alternatively, if you price your home competitively, which is either at or slightly below market value, it can be among the nicest that buyers see within their budgets. This can ultimately lead to a higher sales price and fewer concessions. To help you list at the right price, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that comparable properties have recently sold for in your neighborhood. Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). Combined with our local market insights, we’ll help you find that sweet spot that will attract the best offers while maximizing your profit margin. 5. OFFER BUYER INCENTIVES Sometimes, sweetening the deal with buyer incentives can help you get the best possible offer. Incentives are especially helpful in the current market, when many buyers are struggling with affordability and concerned about their monthly payments. Options that can pay off include: Buying down their interest rate – You can pay an upfront sum to reduce the buyer’s mortgage rate. This approach can save far more than that cost over the life of the loan, meaning it’s worth more to the buyer than a simple price reduction.8 Offering closing cost credits – You might pay a set amount or a certain percentage of the buyer’s closing costs. Paying HOA costs – You could cover homeowner association or condominium fees for a set period of time. Including furniture or appliances in the sale – If your buyer is interested, throwing in the furniture or appliances that they want and need can make your property more appealing. Buyer incentives vary and valuing them can get complicated. We’re happy to talk through the options that might make sense for you. 6. USE A PROVEN PROPERTY MARKETING PLAN Gone are the days when it was enough to put a “for sale” sign in your yard and place a listing on the MLS. A strategic marketing plan is now essential to get your home in front of as many interested and qualified buyers as possible. The truth is, buyers who don’t know about your house can’t make an offer. That’s why we utilize a multi-step approach to marketing that starts with identifying your target audience, effectively positioning your home in the market, and communicating its unique value. We then use a variety of distribution channels to connect with potential buyers and performance-based metrics to monitor and improve our campaign results. Our proven approach can have a big impact on the success of your sale. Reach out to learn more about our multi-step marketing plan and discuss how we can use it to generate interest and offers for your home. 7. WORK WITH AN AGENT WHO UNDERSTANDS YOUR AREA To get the best offers possible, you need a real estate agent who knows your area inside and out. Any agent can pull comparable sales data, but in a quickly-evolving market, even the latest comps can lag the current market reality. We have our fingers on the pulse of the local market because we’re working directly with sellers like you. We also represent local buyers who are active in the market, searching for homes like yours. That puts us in an ideal position to help you price your home for a quick sale and maximum profit. And since we hear first-hand what local buyers want, we can help you prep your home to broaden its appeal and highlight its most-coveted features. Additionally, we can use our extensive network of local agents to solicit feedback and get your home in front of more potential buyers. All of these factors can add up to a significant difference in your profit: In 2021, the typical home sold by owner went for $225,000 compared to a median price of $330,000 for agent-assisted home sales.9 LET’S GET MOVING Are you ready to get a great offer for your home? Our multifaceted approach can help you maximize your real estate returns. Reach out for a free home value assessment and customized sales plan to get started! The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: U.S. Bank – National Association of Realtors – Bankrate – National Association of Realtors – Bankrate – National Association of Realtors – The Balance – U.S. News & World Report – National Association of Realtors –

A growing share of home buyers and sellers sat on the sidelines last year as the pace of home sales continued its downward trajectory.1 In fact, since the Federal Reserve began its series of interest rate hikes in 2022, the combination of higher borrowing costs and record-high home prices has fostered the steepest real estate market slowdown since the 2008 recession.2 Priced out of the market, a generation of would-be buyers has been forced to delay their plans for homeownership.3 At the same time, current owners—reluctant to give up their pandemic-era mortgage rates—are waiting to sell, which has resulted in a sharp drop in listings.4 But there may be some relief in sight: In December, the Fed signaled that it was done raising interest rates—and suggested that it could cut rates by 0.75% over the coming year. While mortgages don’t directly follow the federal funds rate, they typically move in tandem—so cheaper home loans may finally be on the horizon.5 Lower mortgage rates should bring some much-needed movement back into the real estate sector. But with a market this fluid, the home buyers and sellers with an edge will be those who proactively leverage a real estate agent’s on-the-ground expertise and stay flexible so that they can quickly adapt to changes. What does that mean for you? Read on to learn more about the current state of the U.S. housing market, the potential opportunities for buyers and sellers, and economists’ predictions for the year ahead. HOME PRICES WILL REMAIN RELATIVELY STABLE Not even 8% mortgage rates could bring home prices crashing down in 2023, as some prospective home buyers may have hoped. In fact, on average, U.S. property values ended the year higher—with declines in some areas of the country offset by appreciation in others.6 Prices typically fall when rising interest rates drive down demand. So what’s keeping home values high? Mike Simonsen at Altos Research points to a nationwide housing shortage: “Declining home prices probably require that supply-and-demand imbalance, and what we have is really a balance. There's a balance between low demand and low supply.”7 Analysts expect that equilibrium to continue to prop up home prices in 2024, although the specific forecasts vary. For example, economists at Realtor.com predict that the median home price will fall slightly, by 1.7%, while those at Fannie Mae project modest price growth of 2.8%.6,8 However, experts widely agree: Mortgage rates will be the largest driver of property values. If rates fall faster than expected, more buyers will enter the market—which could send home prices soaring higher. What does it mean for you? There’s no evidence that home prices are headed for a major decline. So if you’re ready and able to afford a home, this is a great time to test the waters. The best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy. And if you’ve been waiting to sell your home, this could be your year. Price growth has slowed, so now is the time to maximize your equity gains while minimizing your competition. Contact us for recommendations and to find out what your home could sell for in today’s market. MORTGAGE RATES SHOULD FINALLY TREND DOWN The best news we've got incoming for 2024? The extra-high mortgage rates that have weighed heavily on the real estate market may finally be headed south. At its December meeting, the Fed signaled that the worst is likely behind us and that it expects to cut its overnight rate in 2024. Analysts predict that mortgage rates will fall in lockstep.5 “Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year,” said Freddie Mac’s Chief Economist Sam Khater following the announcement.9 The average 30-year fixed mortgage rate has already declined from an October high of around 8%, and analysts at Fannie Mae, the Mortgage Bankers Association, and Realtor.com all forecast that rates will trend down this year, ending 2024 closer to 6%.7 However, it’s not all good news: It appears that the days of 3% mortgage rates are firmly behind us. “As long as the economy continues to motor along, the new normal of higher rates is here to stay,” explains Greg McBride, chief financial analyst for Bankrate.4 So, when it comes to a home loan, borrowers may need to adjust their expectations. What does it mean for you? If you're a prospective home buyer, declining mortgage rates could give you the opportunity to lock in a more affordable monthly payment. And if you purchase before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask us to refer you to a mortgage broker who can help you shop around for the best option. Sellers also have reason to celebrate buyers' lower interest rates: As the barriers to entry to the housing market decline, they could enjoy more or better offers. Reach out to discuss how we can help you maximize your home’s sales potential. LOWER RATES WILL BRING SOME BUYERS AND SELLERS BACK TO THE MARKET Over the past couple of years, higher mortgage rates have cooled home buyer demand. They’ve also delayed the plans of many home sellers, who have been reluctant to trade in their current mortgages for loans that are several points higher. With so many market participants playing the waiting game, the real estate sector has slowed significantly. National Association of Realtors (NAR) Chief Economist Lawrence Yun estimates that the number of existing home sales fell by 18% last year following a 17% decline in 2022.10 However, as financing costs tick down, sales volume is expected to rise. “Lower mortgage rates would help spur home sales activity, which [is] expected to increase in 2024 compared to 2023,” explains Selma Hepp, chief economist at CoreLogic. “Declines in mortgage rates will drive more sellers to trade their existing home and help add much-needed inventory to the market, leading to more transactions.”4 There’s also evidence that the patience of holdout home buyers may be waning, despite higher borrowing costs. A recent survey by Bank of America found that the number who are willing to wait for prices or mortgage rates to decline before making a purchase fell from 85% to 62% in just six months.11 “When it comes down to it, if buying a home is your goal and within your budget, the best time to buy is when you're ready financially and you can find a home that fits your needs,” Matt Vernon, head of consumer lending at Bank of America, advised in a recent release. “Even in the current interest rate environment, there are clear benefits to purchasing a home and beginning to build equity.”11 What does it mean for you? If you’ve been waiting to buy a home, you might want to consider purchasing before the competition picks up. Pent-up demand could bring a flood of buyers back into the market as mortgage rates decline. Contact us if you’re ready to begin your home search. If you’re hoping to sell this year, you may also want to act fast. An increase in listings will make it harder for your home to stand out. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation. THE HOUSING SUPPLY SHORTAGE WILL PERSIST Will home buyers who are eager for options have more homes to choose from this year? Yun thinks so. He believes sellers will soon grow weary of waiting to list. “Pent-up sellers cannot wait any longer. People will begin to say, ‘life goes on,’” the NAR economist speculated at a November conference. “Listings will steadily show up, and new home sales will continue to do well.”10 But not everyone agrees. Economists at Realtor.com forecast that inventory could drop by as much as 14% this year. The decline in existing homes for sale has been compounded by a persistent shortage of new construction, with single-family housing starts falling 10.3% in 2023 and 11.2% in 2022.6 Even so, newly-built homes are playing an increased role in easing the supply crunch, accounting for around one-third of all homes for sale in 2023—which was twice the historical average.12 But new construction alone isn’t expected to fill the inventory gap. According to First American Financial Corporation’s Chief Economist Mark Fleming, the U.S. currently has a shortfall of around one million homes, and conditions won’t ease until individual owners re-enter the market. “Only when more homeowners decide to sell, and then buy again, will housing supply and the pace of sales return to anything resembling normal.”13 What does it mean for you? Inventory remains tight, but buyers can benefit from the search expertise of a real estate professional. We can tap our extensive network to access off-market and pre-market listings while helping you explore both new construction and existing homes in our area. While sellers will continue to benefit from the low-inventory environment, they should be prepared to compete against brand-new homes. We can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers. WE'RE HERE TO GUIDE YOU While national real estate forecasts can give you a “big picture” outlook, real estate is local. And as local market experts, we know what's most likely to impact sales and drive home values in your neighborhood. As a trusted partner in your real estate journey, we'll keep our ears to the ground so that we can guide you through the market's twists and turns. If you’re considering buying or selling a home in 2024, contact us now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: CNN - https://www.cnn.com/2023/10/19/homes/existing-home-sales-september/index.html Goldman Sachs - https://www.gspublishing.com/content/research/en/reports/2023/10/23/2d814362-a656-4cb3-8586-bea8591188e3.html ABC News - https://abcnews.go.com/US/millennials-priced-homeownership-feeling-pressure/story?id=105032436 Bankrate - https://www.bankrate.com/real-estate/housing-market-2024/ CBS News - https://www.cbsnews.com/news/interest-rates-are-paused-heres-why-thats-good-news-for-homebuyers/ Realtor.com - https://www.realtor.com/research/2024-national-housing-forecast NerdWallet - https://www.nerdwallet.com/article/mortgages/2024-homebuying-trends-property-line-november-2023 Fast Company - https://www.fastcompany.com/90991612/home-price-2024-outlook-fannie-mae Freddie Mac - https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-below-seven-percent National Association of Realtors - https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-forecasts-existing-home-sales-will-rise-by-15-percent-next-year Bank of America - https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/12/bofa-report-shows-fewer-prospective-homebuyers-willing-to-wait-f.html Marketplace - https://www.marketplace.org/2023/11/27/mortgage-rates-new-home-sales/ First American - qhttps://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024