Lee Morof's Real Estate Blog

Whether you’ve been looking for a home for a long time now, or you’re just about to get started on the hunt, you’re probably wondering how long should you spend looking for a new home. Does it take weeks to find your forever home, or months or even a year? What’s typical?

There Is No Typical

The reality is, there is no typical amount of time it takes to find your home. There are too many variables, including how actively you’re looking. Maybe you’ve heard horror stories of people who’ve been hunting for a house for a year. But come to find out, they’ve only really devoted one weekend a month to looking at houses.

Or you’ve heard of a couple who found their dream home in just two days. Well, odds are they spent many nights online, sifting through hundreds of house images and only went to see a handful of homes in person which really met their search criteria.

The Market Plays A Part

It takes longer to find a home when the market is slanted toward sellers. In times like that, there’s less inventory and the houses that are available may be out of reach financially. Keep looking, though, because your real estate agent may find the ideal house on the market from a motivated seller who’s wiling to come down on the price. Hang in there and you’ll find your dream home in any market.

Does Your Dream Home Exist?

If you feel like your home search has been dragging on despite a favorable market, it could be you’re looking for something too elusive to find. Maybe it’s not the houses you’re dissatisfied with, but something else. You may be unconsciously trying to recapture something you’ve lost, like your old childhood neighborhood or a feeling of community.

These are all valid desires that you can acquire with the right home in the right place. Try to identify what you’re really looking for so your real estate agent can help you find it. 

When it comes to finding your home, it takes as long as it takes. Enjoy the process, communicate with your real estate agent and try to keep an open mind. One day, when you least expect it, you’ll walk through the doors of your next home for the first time. 

If you find it difficult to make ends meet, these tips will help you save money in ways that are easy to do and create substantial savings over time.

Declutter

Get rid of stuff you do use or need by having a garage or yard sale or by putting things for sale on eBay or Craigslist.

Make Your Own Coffee

Do you really want to make that billionaire richer by buying coffee for $5+ a cup? Make your own gourmet coffee that costs around 50 cents per cup for the same thing.

Bring Your Own Lunch

Making your lunch the night before to take to work the next day will give you more time to enjoy lunch. You will save the money that is wasted when driving to fast-food restaurants or going to pricey lunch places.

Grow Some Food

Everyone should have a garden, even if it is only a window garden for herbs. If you have some room for pots, you can grow tomatoes and other vegetables. If you have a back yard or a front yard you can grow tons of stuff.

Buy In Bulk And Use Coupons

For the things that you use on a regular basis, stock up when the items are on sale. Buy things at discount stores. Buy bulk things like rice and pasta at wholesale prices in co-ops. Coupon clipping is a hobby that pays for itself in savings. Just be careful not to buy things you do not really need or use.

Change Home Lighting

If you have not yet changed out all your incandescent bulbs to compact fluorescent bulbs, what have you been doing? Change those bubs right away because you are burning up money on wasteful lights.

Install Smart Home Technology

Making a home run with more energy-efficiency is reduces your bills and helps the planet too. Smart home technology monitors comfort zones and turns things off when they are not needed.

Cut The Cable

An expensive monthly bill for cable TV is something many can do without. There are plenty of less expensive alternatives and tons of free content to view online.

Make A Change Jar

Every time you come home, put all the change you have in a change jar. You will be surprised how much money builds up over time and you will hardly even notice it is missing.

Walk Instead Of Drive

Do you have to drive your car everywhere? Try walking short distances instead. Not only will you save money on gas; walking may improve your health.

DIY Projects

Instead of paying others to do simple jobs around the house, do them yourself. There are plenty of do-it-yourself (DIY) guides on YouTube that show how to do just about anything. You will save the expensive labor cost for simple home repairs that can be up to $75 per hour.

Are you inspired? OK. Put some of these ideas into action. Ready, set, save!

Your trusted real estate professional is a skilled negotiator. Be sure to utilize this savvy resource as soon as you are considering a new home purchase.

Savvy home buyers often get great deals on new home constructions by asking for deals and discounts and doing some up-front research. 

Home builders often dislike offering steep discounts in sales prices because they want everyone in the community to feel like they bought their property at a fair price. Maintaining sales prices also helps with future home appraisal values. It helps all of the buyers in a neighborhood to keep sales prices consistent and growing. 

Fortunately, you can still get great discounts that can reduce the cost of your new home.

Ask the builder if they can do the following:

Settle Closing Costs 

Closing costs vary depending on your state. On average, the costs can be as high as $10,000. In Colorado, for example, a standard closing is about 3 percent of the selling price.

It’s important to note that closing costs vary widely and can be structured in many ways. Make sure to consult a trusted mortgage finance professional to get the best information on your situation. But if the builder pays the bill, that money remains in your pocket. Isn’t that a great discount? 

Buy Down Your Interest Rate 

Although interest rates are low, if a builder is willing to buy down your rate further as part of the closing, it would reduce the amount you pay monthly in interest on your mortgage payment. That makes it manageable in the long run. Once again, your mortgage professional can give you the best details on this idea.

Offer Free Upgrades 

Most homes have standard built in appliances. To get high-end appliances, home buyers normally have to pay for upgrades. Ask your builder if you can get the upgraded home appliances or other upgrades without paying extra. It’s a great strategy to move into an improved new home. 

Additional Discounts 

To sweeten the deal, home builders can throw in additional discounts such as automated garage doors, landscaping, finished basements and window coverings. These discounts are worth asking about.

Although these strategies are great, there are some situations that make it more difficult to get sales concessions. Therefore, as you negotiate, keep the following in mind: 

• If business is going great, deals become more unlikely as builders have little motivation to give discounts. 
• You may not end up with the perfect home you want since you may be buying a home that’s near completion or already built. 
• The best home locations may be taken because properties in prime lots are usually the first to sell. 

Knowledgeable buyers are most capable to cut great deals. Therefore, research new construction homes in your preferred neighborhood, visit some homes and compare what deals you can get. Above all, don’t hesitate to ask questions of your trusted real estate and mortgage professionals.

A home is one of the biggest investments you can make, and the American Dream for many. Most people spend significant time finding or designing their “dream home.” The first decision is whether to buy or build. 

As of September 2018, the average sales price of a new home was $377,200, according to joint data collected from the U.S. Census Bureau and the Department of Housing and Urban Development. Existing homes sales price was approximately $258,100, according to the National Association of Realtors. 

New homes attract bigger prices than existing ones, meaning building costs are also high. So, how do you decide what is best for you?

Here are five factors to consider. 

Time 

Building a home takes time since you must complete several phases. You must buy land, find an architect to design, get building permits, find a contractor and start building. It can take between six months and a year before you move into your new home. 

Buying an existing home shortens that time. For a new house, you can move in once the escrow closes. Older homes may require renovations, but it won’t take long. 

Home Design 

Building your home gives you the benefit of customization. Working with your architect, you can design your dream home to reflect your taste and preference. Buying an existing home, means you may have to compromise on a few aspects. 

Energy Efficiency 

Rising energy costs is a concern to potential homeowners. Designing your own home means you can incorporate measures to be energy efficient. Buying an old home may require more resources to upgrade. That might end up hitting your wallet harder. 

Fortunately, most homebuilders are responding to market demands for energy efficient homes. Most new homes meet these standards. 

Budget 

Budget is an important consideration when buying or building your home. A buying price on an existing home reflects the value of the house.  

Building, on the other hand, means you have to juggle a budget constantly throughout the construction period. It is not uncommon to spend more than you budgeted for initially. 

Even if you decide to find a perfect existing home, you may finally opt to build. Conversely, you may strategize to build and later choose to buy an existing home. In both cases, working with qualified professionals such as a trusted mortgage lender, real estate agent or a builder can make the process seamless.

As a new homeowner, now is the time to take control and organize your house for safety and security. The following first five steps should be carried out in the first few weeks if possible.

1. Change The Locks

There’s no way of knowing if the previous owners gave copies of the house keys to a friend, neighbor or cleaning staff. The very first thing you should do when you take ownership is to re-key the locks on all the doors, including the garage and any outbuildings there may be on the property.

Alternatively, you can install brand new locks. Either way, a locksmith can take care of this for you.

2.  Locate Shut-Off Valves

Don’t wait until a water leak to run around searching for the main shut-off valve. Instead, take a few minutes to locate all the shut-off valves for your new home. Write down their locations and post the list next to your circuit breaker.

3. Label The Circuit Breaker Switches

As the new homeowner, you’ll want to know what each circuit breaker switch controls. Work with a family member to methodically go through and flip each switch off and on to figure out the controls. Then carefully label each switch so you never have to guess again.

4. Place Fire Extinguishers

Be ready for a small fire emergency by placing fire extinguishers in each room of your new home. For the kitchen and garage especially, be sure to purchase the correct type of fire extinguisher. The labels on the extinguishers will guide your decision. Even bedrooms could have at least a small extinguisher handy, in case of an electrical malfunction. 

5. Survey The Land

It pays to walk the land around your property to visually survey it. You’ll want to know about potential issues, such as poison ivy growth or a broken fence panel. You might also find some happy surprises like a hidden rosebush or a nest of birds.

Taking the time to do these five steps will assist in making your new home more enjoyable for your family. They will also help you to familiarize yourself better with your new property. 

Your trusted real estate agent will be there to assist you from beginning to end of your homebuying experience. Be sure to contact this valuable resource as soon as you are ready to start your search.

The housing market has been trending in a positive direction and economic indicators point to new home construction going vertical.

Following the housing bubble and sluggish post-recession economy, construction companies largely turned their attention away from new homes. Diminished values, high regulatory and materials costs served as deterrents to home-building.

But the economic revival the country is experiencing – coupled with a housing shortage – has builders poised to jump back into the single-family home game. Here are three reasons new home construction is expected to boom.

1: First-Time Buyer Lifestyles

Consider that the last big new construction boom occurred 12-16 years ago. Those so-called “new” homes are well lived in these days. The trickle of actual new homes since cannot come even close to meeting the demands of Millennials entering the housing market. This demographic also tends to look for vastly different things than the traditional buyers before them.

Millennials grew up immersed in technology. Smart-home and Green features rank high on their check list. Items such as solar panels, automation and being able to manage a living space from a phone app simply were not part of the previous housing boom equation. Simply put, young first-time buyers want a type of home that fits their life experience.

2: New Home Economics

The inventory shortage has driven many people to rent. Many would rather invest that monthly housing cost into equity and gain tax write-off benefits. Also, a high number of military service members are returning to civilian life as the War on Terror winds down. That means you have a growing number of people with the ability to secure friendly VA mortgages that require no down payment.

Stateside, tech and career schools are turning out graduates that are entering good paying jobs. This all adds up to a large number of first-time homebuyers with the economic temerity to reach above traditional starter homes.

3: Rising Mortgage Rates Matter

Some economists forecast economic shrinkage when the Fed raises rates. The president recently voiced his displeasure over the move.

But the rate increase remains a natural phenomenon in an economy enjoying historic positive measures. Record-low unemployment and a GDP that posted 4.1 percent growth are touchstones that everyday Americans are doing better and can afford a little more.

While naysayers may claim the modest interest rate increase will result in economic contraction, it could have exactly the opposite effect in the new construction market.

Consider that home-builders who shifted to other niche markets see a window for improved revenues given the tight home inventory. The uptick in rates means that people will likely be prompted to buy sooner, rather than wait for the next hike. That could be another reason a new construction perfect storm is brewing.

The winds appear to be blowing in the right direction for construction companies to jump back into the new home game. These homes are likely to sell quickly, and builders could see tremendous pre-sale interest. If you are interested in buying a newly built home or one still on the drawing board, your trusted real estate professional is sure to be one of your very best assets.

Hunting for a house is stressful enough even if you are moving to another part of town. However, when you are searching for a house from afar, it can make the task of finding the right home for your needs seem almost impossible. 

Fortunately, in today’s high-tech world, you have an array of tools available right at your fingertips that can make it easy to find the perfect house for your needs. So, even if you are looking for a home thousands of miles away, you can do so quickly and with minimal fuss.

Partner With The Right Real Estate Agent 

The first thing that you should do when looking for a house in an area that you are unfamiliar with is to find a local agent. Find someone who has the expertise of the local market and buying process. The information that you garner from choosing a local agent can be invaluable. They know the market intimately.

Additionally, a local agent knows the community as they likely live there as well. They know which schools and neighborhoods are best. They can get to know what you are looking for in an area and help you find the right community for your particular needs. They might also have information on local gems that are not yet showing up on online listings.  

Do Your Research 

After you find a home or two that you are interested in, thoroughly research the area. Search for information about local schools, churches, shopping centers and more. You want to make sure that the neighborhood will meet your needs. Research crime rates in the area.

Also, determine how long your commute from work to home will be each day. Even if you don’t have children, research local school rankings. The rating and quality of local schools is paramount when it comes to the resale value of your home.

Visit In Person 

There is just no amount of research that can substitute for an in-person visit to a potential home. If you are planning to hunt for a house from a distance, be prepared for the travel. Make sure that you have the money and time to visit. It is best to prepare for longer house-hunting trips so that you can take your time when walking through each showing.

Also, make it a point to pay a visit to local restaurants, parks, and businesses to get a feel for the local community. 

Your trusted real estate agent will be your best asset when searching for properties at a distance. Be sure to provide your must-have list and start searching for your new home today.

Choosing The Right Movers Can Save You Time And Money

It can be overwhelming to choose a moving company if you are buying or selling your home. There are usually numerous ads for movers offline and online. Determining which company is the best fit can be tricky.

Fortunately, doing a little research can help you find the right mover. If you are looking to compare movers, you have come to the right place. Here are some tips to get started. 

Are They Licensed? 

When you hire a mover, you are entrusting your most valuable possessions to that company. The first thing to determine is whether or not they are licensed. If you are moving to another part of the country, then ensure that the moving company you use is licensed by the federal government.

Every state in the U.S. has its own laws regarding local moves. Check to see what the requirements are in your state. Make sure that the mover and that you choose has the proper licenses. Selecting an unlicensed mover is just asking for trouble.

Do They Have A Solid Reputation? 

Another way to compare movers is to look at each company’s reputation. Comb through online reviews of each mover that you are considering hiring. It is impossible to make everyone happy. Therefore, there will be negative reviews from time-to-time.

If there were problems, how did the moving company handle it? Did the mover reach out to the customer to try to address the problem? Did they ignore the review — or worse yet — disparage the reviewer? Steer clear of companies that ignore, criticize or attack their customers online. 

Do They Belong To Moving Associations? 

Membership in moving associations and other industry recognitions are signs of a trustworthy moving company. Are they a certified ProMover? The American Moving & Storage Association provide this designation. It indicates that the mover is a high-quality professional who follows industry standards. Choosing a ProMover can help you weed out con artists and other shady movers who are only out to take advantage of people. 

How Long Have They Been In Business? 

Try to stick with moving companies that have been in business for a long time. There is a higher chance that they provide excellent service if they have been in business for many years. Some “fly-by-the-night” movers hire unemployable workers who can’t pass background checks. Most movers who have been in business a long time avoid this practice. After All, they must be doing something right to have remained in business for so long. 

Your trusted real estate agent will likely have referrals for movers in your area.  These professionals are well-versed in moving. Ask!

Moving into your home is an exciting time, and you shouldn’t allow higher than expected electricity bills to dampen your spirits. Every day, households around the world waste large amounts of energy.

If your home uses more energy than it needs to, you are the one that is paying the price. Luckily, there are many ways to make sure your home is running as efficiently as possible. Save yourself from ‘utility shock’ by taking these seven steps.

Make Energy Efficiency Your Electric Company’s Business

When you first move into your home, have your appliances inspected by an authorized technician. You could call your appliance’s manufacturer or the electric company to find someone to inspect your appliances.

If you do find yourself on the phone with the electric company, ask them if they have peak and off-peak hours. Often, there are times throughout the day where usage is at a premium, and the cost is higher than it would be at other times.

You should also ask if they have any tips or resources pertaining to your home’s electrical usage. Electrical companies will often send you literature or an energy saving kit that can help make your home run more energy efficiently.

Get Fresh Furnace Filters And Examine Your Central Air System

When you move into a new home, it’s difficult to know what kind of upkeep the previous owners performed on the furnace. Upon moving into your new home, you should have the filter on your furnace changed and your ducts examined and cleaned.

Do the same for any central cooling systems in the home. This way you’ll feel confident that they are operating properly and producing the best air quality possible.

Wrap And Warm Your Hot Water Tank

The hot water tank is another area where you can save a significant amount of money. Set your hot water tank to a warm setting, instead of a hot one (this makes little difference in the water temperature at your tap, but it will save you money).

You could also purchase an insulating cover for the tank, and wrap the hot water pipes in the home. Insulation for your hot water tank and pipes is a cost-effective solution, and you can find plastic or foam pipe insulators at your local hardware store.

Evaluate The Situation From Windows To Insulation

Check the windows and doors of the home to make sure they are properly insulated. Fresh weather stripping and caulking will keep drafts out in the winter, and cool air in during the summer.

Another way to regulate your home’s temperature is to replace the insulation in your attic. You could also install an attic fan to improve airflow.

A Bright Energy Saving Idea

Replace incandescent light bulbs with fluorescent bulbs. The cost is only slightly higher, and fluorescent bulbs last over five times as long as incandescent bulbs. Fluorescent bulbs give off a softer light, but are bright enough to light your home and will save a significant amount of electricity.

Get Your Windows Working With The Weather

Replace thin curtains with heavier weight window coverings. You can use the sunlight when you need it, and block it out when you don’t. Heavy drapes are also great at keeping warm and cool air in your home. Having high quality window treatments may mean you use your thermostat and light switches less.

Properly Power Down Your Electronics

A surprising amount of the energy our electronics use is wasted while devices are powered down. Electronics that are off but are still plugged directly into an outlet do indeed burn energy. When you set up the electronics in your home, use power strips where you can. Flicking the bar off when electronics are not needed will lead to savings on your electric bill.

Once you have taken these steps, you can feel good knowing you are saving money and being environmentally responsible. Energy efficient handy work and home improvements also qualify for significant tax credits.

Make sure you keep your receipts and invoices, as they could mean cash back in your pocket come tax season. If you decide to take your savings and move up and out, contact a local real estate professional for assistance in finding the perfect place to call home.