Lee Morof's Real Estate Blog

If you want to sell your home quickly — and for the most profit — you can’t just list it and cross your fingers. Successful sales are well-planned sales, and there are several ways in which you can make sure your own home sale turns out as you’d like it to.

1. Know Your Target Market

What kind of people are buying homes in your area? Is your neighborhood popular among new families, retirees, young singles? Do a little research to see what type of buyers are typically attracted to the area, and figure out how your home caters to their lifestyle. Marketing is one of the most important aspects when it comes to a successful home sale, and knowing who to target is the first step.

Once you have learned a bit about your potential buyers and what they’re looking for, use that information to guide the rest of your sale preparations. Consider what you’ve learned about their wants and needs and carry that into any renovations you do, your listing, and your open houses. Make your home one that your buyers really want to live, and you just might find yourself in the midst of a bidding war!

2. Call In The Pros

When you sell your home without enlisting in the help of a professional, you open the door for significant mistakes to be made. Real estate professionals have the expert knowledge and experience that is needed to steer your home sale towards the best possible outcome. They can offer advice on listing price, marketing materials, open houses, offers received, and can take care of paperwork.

Attempting to do everything yourself may sound feasible, but you could sell yourself short by accidentally pricing your home too low, or you may be on the market forever if you price it too high. Mistakes in contractual paperwork could land you in hot water, and overall you’re more likely to experience stress during your home sale if you try to do it all yourself. Find a real estate agent that you’re comfortable with, and you’ll be more likely to get what your home is worth without the extra stress.

3. Fix It Up

Making sure that key renovations are up-to-date before selling your home is another crucial factor if you want to sell it quickly and profitably. Important things to consider include your kitchen, bathrooms, and roof, as buyers tend to scrutinize those areas the most during a walk-through. Make sure that everything is in good condition and looks presentable before listing — you don’t want potential buyers to see any red flags when looking at your property.

Ready to sell your home? Contact your local, experienced real estate professional today to make the most of your sale.

There are many homeowners who are looking for help with storage. Even after moving in, many homeowners still have a lot of items they need to get rid of and this is where built-in storage solutions can be helpful. Even though some storage options might be pricey, there are inexpensive options available as well. Take a look at a few solutions below, and improve the storage situation. 

Use Space Under the Stairs

One option that many homeowners overlook is the space under the stairs. If there is a second story, there may be an area under the staircase that looks like a storage space. There should be plenty of opportunities to add a bookcase, a shelf, or even a cabinet. Even a few drawers can make a significant difference. 

Consider Going Under the Bed

Another option is to use storage space under the bed. If the bed is on a frame, there should be room to add a box or two. This could be a great way to create more storage space in the bedroom without adding another piece of furniture. There might even be opportunities to put the bed on risers, creating even more room underneath the bed. 

Use Tilting Drawers

Homeowners may want to get creative by adding tilting drawers. If there is an awkward location in the kitchen, a hinge solution might be the answer. What this means is that it is possible to pull the door out of the drawer and create additional storage inside the area. This is a great way to hide a garbage can or a recycling bin. Most contractors can add this type of storage relatively quickly. This could also be a great solution in the bathroom. 

Take Advantage of Sliding Storage

Homeowners also need to take advantage of sliding storage. This is a great way to get more room out of narrow spaces. For example, there might be room in the kitchen to add a sliding shelf that doubles as a spice rack. One possible location is the area between the refrigerator and the wall or counter. There might also be a small spot between the bathtub and the wall, which could act as a great shelf for linens.

It is exciting to purchase a house for the first time, but this is also a major financial decision. Therefore, potential homebuyers need to make sure they are prepared. What do potential homeowners need to know about purchasing a home for the first time? Learn more about this process below. 

Ask For Help From A Real Estate Agent

First-time home buyers always need to ask for help from a real estate agent. A real estate agent can help someone identify potential issues with a home that might have otherwise been overlooked. A real estate agent can also make sure potential home buyers do not overpay for a home. 

Always Get A Pre-Approval Letter

Potential home buyers also need to get a pre-approval letter from a lender. This is a letter stating that a potential home buyer has been approved for a specific loan amount for that specific property. A pre-approval letter will help someone’s offer appear more competitive, particularly if they are going up against a cash offer. This makes the seller more confident that the offer is not going to fall through on financing. 

Do Not Skip The Inspection

Some home buyers are tempted to skip the inspection because this costs more money. It is critical to get a home inspection done so that everyone is aware of the potential issues with the home. If there is a major repair identified, potential home buyers may ask to have this repaired before purchasing the home. 

Pay Down Other Debt

First-time homebuyers need to pay down as much of their debt as possible before applying for a home loan. This could make it easier to receive financing, and potential homeowners might receive a lower interest rate. Examples of other forms of debt include credit card debt, student loans, and car loans. 

Get The Money In Order

Of course, potential homeowners need to make sure they arrange their money prior to closing, but it is also important to get a down payment put together before looking for a home. Many sellers will ask for proof of funds before accepting an offer. Arranging funds prior to the search process can make this much smoother. This can also help first-time homebuyers compete with cash offers. 

If you are looking for a home, your agent may tell you that a home is being sold as-is. This means that there may be major defects with the home that the seller is not willing to repair before offloading the property. As a result, their problems may become your problems if you purchase that property. How can you protect yourself during the sale?

Look At All Disclosures

Even though disclosure laws can vary significantly from state to state, the homeowner may be required to disclose certain problems to you. Real estate agents should always point out disclosures from sellers, so take a look at what the seller is sharing with you. Examples could include problems with the roof, lead paint, or natural hazards such as flood zones or fire zones. 

Add An Inspection Contingency

You should always get an inspection before you purchase the home so you know what defects might be present. If you purchase a home and do not get an inspection, you might be surprised by certain defects when you move in.

Furthermore, you should add an inspection contingency to the home. This means that you have the opportunity to negotiate for certain issues to be resolved if they are found on inspection. Or, you pay a lower price for the home if the seller is unwilling to resolve them.

Ask For Help From A Lawyer

If there are major defects in the home, and if the seller is refusing to budge, you may want to reach out to a real estate attorney. This is helpful for learning more about the real estate laws in your state. You need to protect your rights, figure out how you can get the defects fixed, and how you can save money on the price of the home. Your real estate agent might be able to refer you to a real estate attorney. 

Negotiate A Lower Price

Ultimately, the best way for you to protect yourself is to negotiate a lower price. Because you will have to spend a lot of money repairing the home, the seller should be prepared to reduce his or her asking price. In a seller’s market, you may not have that opportunity, but you may want to ask for a discount. 

Last week’s scheduled economic news included readings on public and private-sector jobs and the national unemployment rate. Weekly readings on mortgage rates and jobless claims were also published.

Non-Farm Payrolls: Jobs Growth Dips Sharply in September

U.S. jobs growth dipped sharply in September according to the federal government’s Non-Farm Payrolls report. 194,000 public and private sector jobs were added and fell far short of the expected reading of 500,000 jobs added. 366,000 public and private sector jobs were added in August. Hiring lagged as continuing concerns over Covid kept workers at home. Less hiring at public schools reduced September’s jobs growth at a time when schools traditionally hire for the upcoming school year.

ADP reported 568,000 private-sector jobs added in September; analysts expected 425,0000 jobs added based on 340,000 private-sector jobs added in August. In related news, the national unemployment rate fell to 4.80 percent in September as compared to August’s jobless rate of 5.20 percent. Analysts expected the national unemployment rate to drop to 5.10 percent in September.

Mortgage Rates Mixed, Jobless Claims Fall

Fixed mortgage rates fell last week as the average rate for a 30-year fixed-rate mortgage fell two basis points to 2.99 percent; rates for 15-year fixed-rate mortgages fell by five basis points on average to 2.23 percent. The average rate for 5/1 adjustable rate mortgages rose by four basis points to 2.52 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages

New and continuing jobless claims fell last week as 326,000 initial jobless claims were filed as compared to the previous week’s reading of 364,000 first-time claims filed. Analysts expected 345,000 initial jobless claim filings. 2.71 million continuing jobless claims were filed last week as compared to the previous week’s reading of 2.81 million ongoing jobless claims filed.

What’s Ahead

This week’s scheduled economic reporting includes readings on inflation, retail sales, and consumer sentiment. Weekly readings on mortgage rates and jobless claims will also be published.

Before an owner can market a property to buyers that want to use a FHA loan, he will want to familiarize himself with the FHA’s standards. FHA won’t insure loans on just any property.

While their standards aren’t as stringent as they used to be, a home needs to be in relatively good condition to qualify for FHA financing.

Location And Lot

To qualify for FHA financing, the property has to be located on a road or easement that lets the owner freely enter and exit.

The access also has to be paved with a surface that will work all year a long dirt driveway that washes out in spring won’t qualify.

The FHA also wants the lot to be safe and free of pollution, radiation and other hazards. For that matter, it also needs to provide adequate drainage to keep water away from the house.

Property Exterior

The FHA’s requirements for making a loan start with the home’s roof. To pass muster, the house must have a watertight roof with some future life left. In addition, if the roof has three or more layers of old shingles, they must all be torn off as part of the replacement process.

The property’s exterior has to be free of chipped or damaged paint if the home has any risk of having lead paint. Its foundation should also be free of signs of exterior (and interior) damage. It also needs full exterior walls.

Property Interior

The property’s interior also needs to be inspected. FHA standards require that the home’s major systems be in good working order.

Bedrooms should have egress routes for fire safety and the attic and basement should be free of signs of water or mold damage.

The bottom line is that the FHA wants to make loans on homes that borrowers can occupy. This doesn’t mean that a home has to be in perfect condition to be sold to an FHA mortgage-using borrower. It just needs to be a place that they can live.

With the impact we have on our environment becoming a matter of greater concern, it’s becoming more important for the average citizen to know they’re doing their part. While there are many simple tricks for saving water that will make you feel better about your environmental footprint, here are a few easy upgrades that will make that saving a little more automatic.

Consider a Cistern Device

With outhouses a thing of the past, flushing the toilet has become one of the ways in which household water is being overused the most, but flushing less simply isn’t a viable option. Instead of wasting water in this way, purchase a displacement device and place it in your toilet’s cistern. Without you having to do anything at all, it will instantly reduce the volume of water that is used with each flush.

Learn to Work a Water Meter

It’s ideal to help the environment by saving water, but it’s even better if you can save yourself money at the same time. If you happen to be among those who pay for their water, installing a water meter will enable you to take a closer look at where your water use is going, and can assist you in helping to trim down this expense.

Drain It From the Rain

In the event of an intense downpour, there’s often a lot of water that runs off into the gutter and can’t be absorbed by the grass or the trees. Instead of letting it go to waste, install a water butt to your drainpipe so that you can use the runoff when it’s dry outside to water your plants or even wash your car. There’s no reason that any of the moisture from a good rainfall should have to go to waste.

Invest in Water Efficient Items

From showerheads to washing machines, going energy efficient with your household appliances is becoming quite popular. The next time you have to replace a small appliance or there’s a leak with a household item, consider heading down to the drugstore to look for environmentally friendly options that will instantly reduce your footprint.

With so many options for environmentally friendly items on the market these days, there’s no reason you can’t save water at home with a few easy changes. From making use of the rain that falls to learning to work with a water meter, some simple shifts may make your house the most environmentally friendly one on the block.

A significant number of people are self-employed, which means they might be relying on this income to apply for a mortgage. It is true that people who are self-employed may face additional challenges when trying to get approved for a home loan when compared to someone with traditional W2 income, these are obstacles that can be overcome. With the right qualifications and documentation, even first-time homebuyers who are self-employed should be able to qualify for the home loan they need.

Lenders Assess Someone’s Ability To Repay The Loan

First, lenders are trying to make sure the person will repay the loan. Lenders believe that someone with W2 income has a stable job and a guaranteed salary, which means they are more likely to repay the loan; however, someone who is self-employed has other ways of demonstrating that he or she can repay the loan. Self-employed individuals can use tax returns, payroll receipts, and records from financial institutions that serve as documentation of the applicant’s income or assets. This means standard W2 forms and pay stubs might no longer be necessary.

Navigating Eligibility Requirements

Next, self-employed individuals need to meet the eligibility requirements. This includes two years of self-employment, a reliable income, a strong credit score with a clean credit report, cash for a down payment, and a low debt to income ratio. It is possible for a first-time homebuyer to get a loan for less than five percent down; however, closing costs can be significant. Realistically, first-time homebuyers should plan on spending close to five percent of the home’s value to get approved for a first-time home loan.

Understanding Mortgage Options

Finally, self-employed first-time homebuyers should be aware that there are multiple loan options available. For example, there are FHA and VA loans for those who qualify. USDA loans and jumbo loans might also be an option. There are bank statement mortgages and conventional options available as well. Self-employed individuals might have to visit several of these programs to see which ones work the best. The programs vary in terms of their down payment, minimum credit score, and credit history requirements. It is prudent to work with a professional loan officer who has experience helping self-employed, first-time homebuyers get approved.

The thrill of purchasing a new home is unparalleled; however, once you close on the sale, the dreaded unpacking process begins. You probably did not realize just how much stuff you had until you had to pack it all up. Worse yet, you need to unpack it when you get to your new home. If you don’t unpack intelligently, your new home could end up disorganized and full of clutter. With this in mind, how can you unpack without leading to a tremendous amount of clutter in your home?

Get Rid Of Items You Do Not Need

As you go through the boxes, ask yourself if you are actually going to need the items as you unpack them. If you do not need them, consider donating them to a local charity. Just because you brought it with you does not mean that you need to keep them. Evaluate the items in your boxes, and discard them when not needed.

Unpack Room By Room

Hopefully, you labeled your boxes as you packed them up, so this is a perfect time to organize your items before you open the boxes. Furthermore, it is faster to carry the boxes to the individual rooms than to carry the individual items to their designated locations one at a time. If you unpack room by room, you can ensure every item has a place (and that every item is in its place).

Take Advantage Of Organizers

While unpacking your boxes is half the battle, the other half is using organizers to keep your belongings in the right spots. There are plenty of organizers you can use to keep your items in the right locations. Examples include bins, boxes, and trays. You can use them to organize your storage spaces, drawers, and closets. You can even use wire organizers that prevent your cords from creating trip hazards. Use every tool available to keep your rooms organized.

Prevent Clutter From Developing In Your Home

There are a lot of homes that develop a significant amount of clutter during the unpacking process, but your home does not have to look this way! When you start to unload those boxes, put these tips to work for you!

Last week’s economic reporting included readings from S&P Case Shiller Home Price Indices, the National Association of Realtors®’ report on pending home sales, and the University of Michigan’s final consumer sentiment index for September. Weekly readings on mortgage rates and jobless claims were also released.

S&P Case-Shiller Reports 4^th Consecutive Month of Record Home Price Growth

July Home Prices grew at a year-over-year pace of 19.70 percent as compared to June’s home price growth rate of 18.70 percent according to S&P Case-Shiller’s National Home Price Index.

The S&P Case-Shiller 20-City Home Price Index reported that July home prices grew by 19.90 percent year-over-year; 17 of 20 cities posted higher home price growth rates in September than in August. The top three home price growth rates in the 20-City Home Price Index were held by Phoenix, Arizona at 32.40 percent; San Diego, California home prices grew by 27.80 percent, and Seattle, Washington home prices grew by 25.50 percent year-over-year in September.

Craig Lazzara, managing director and global head of investment strategy for S&P Dow Jones Indices, said “The last several months have been extraordinary not only in the level of price gains but in the consistency of gains across the country.” This differed from the traditional pattern of rapid home price growth in high-demand coastal metro areas as the covid pandemic drove homebuyers to seek out less congested and less expensive metro areas.

Pending home sales rose by 8.10 percent in August according to the National Association of Realtors® and far exceeded analyst expectations of 1.20 percent growth and July’s reading of -1.80 percent growth in pending home sales. Pending home sales are sales for which purchase contracts are signed, but the transactions are not completed. Real estate pros and mortgage lenders use pending home sales to predict future home sales and loan closings.

Mortgage Rates, Initial Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week as the yield on 10-Year Treasuries rose. The average rate for 30-year fixed-rate mortgages rose by 13 basis points to 3.01 percent; rates for 15-year fixed-rate mortgages also rose by 13 basis points and averaged 2.28 percent. Rates for 5/1 adjustable rate mortgages averaged 2.48 percent and five basis points higher. Discount points averaged 0.70 percent for 30-year fixed-rate mortgages; 0.60 percent for 15-year fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims increased to 362,000 first-time claims filed from the previous week’s reading of 351,000 new claims filed. Ongoing jobless claims decreased to 2.80 million continuing claims filed as compared to the prior week’s reading of 2.82 million continuing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index rose to an index reading of  72.8 in September from August’s reading of 71.0. Analysts expected no change from August’s reading. 

What’s Ahead

This week’s scheduled economic reporting includes readings on public and private sector jobs, the national unemployment rate, and weekly readings on mortgage rates and jobless claims.