December 2022









REAL ESTATE NEWS

Brought to you by Jan Brinkman








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Why You Might Not Want to Get too Excited (or Nervous) About a Housing Crash
Rising interest rates and slightly lower demand in the market has caused many people to believe that a housing crash is imminent. Despite some signs that the market is slowing down, you shouldn't get too worried or excited about the possibility of a housing crash.







Recent Economic and Market Changes

Inflation in the U.S. has been on the rise since mid 2021 and reached a 40-year high of 8.2% in September. To combat the increase in inflation, the Federal Reserve has increased interest rates multiple times throughout 2022, making it more expensive to borrow money. These rapid rate changes directly impact the housing market - mortgage rates have doubled this year, which has caused some buyers to pause their home search, and sellers to receive fewer offers on average.



Another factor at play is the Russian-Ukraine war. A ban on Russian oil has driven up energy prices, which in-turn has led to more inflation.



These rapid changes in consumer prices and home prices have been jarring for many consumers and have stirred concerns of a recession and/or housing crash. The good news is that the U.S. job market remains strong, and consumer spending is steady despite the effects of inflation.



Signs Point to a Strong Market

Despite the warning signs that the housing market might be slowing down, there isn't any indication that there's going to be a significant downturn in the market that will allow you to buy a home at a much cheaper price.



For one, buyer demand is still high. Many Millennials are expected to buy homes for the first time in the coming years. In 2021, first-time homebuyers made up the largest share of homebuyers at 34%. Since there are a high number of first-time buyers in the market, it's likely that demand will continue to be strong for the foreseeable future.



Secondly, housing inventory remains near historical lows. A housing crash usually happens when there is excess inventory and hardly any buyers. Lending standards are also much stricter today than in 2008, reducing the number of loan defaults and foreclosures.



As long as home values and demand remain high, there isn't much that can cause the housing market to crash. If you want to buy a home, property values might drop slightly throughout the remainder of 2022, however you shouldn't expect a sizable drop anytime soon.






















Ideas for giving back this holiday season
With the holidays fast approaching, you may find yourself in the holiday spirit, or perhaps in more of a stressed-out spirit. Either way, it’s a wonderful time of year to give back to your community.



You'll find that there are countless opportunities to get involved this time of year, and taking time to think of others and do some good can help put everything else in perspective. Here are some of the ways you can give back this holiday season.



Donate to Your Preferred Charity

Charitable giving is one of the most effective ways you can help people and organizations in need. Volunteering your time and skills is excellent, but every organization needs money and resources on-hand to cope with new challenges. There are many options out there for charities you can donate to. A few favorites among people looking to donate during the holiday season include Toys for Tots, Meals on Wheels, and St. Jude.



If you plan to donate physical items like toys or supplies, keep in mind that some charitable organizations place restrictions on what they will accept this time of year. Check your charity’s website to see what items they need the most.



Volunteer at a Local Food Bank

Food banks are always on the lookout for volunteers. From sorting food to delivering meals to hosting food drives, there are plenty of ways to provide hands-on help. Many food banks even allow for virtual volunteering too. For instance, Feeding America is an organization that provides volunteers with the opportunity to write thank-you notes or make thank-you calls to donors. If you have children, they could help you decorate cards with drawings or stickers.



Help a Neighbor

One of the simplest ways you can get involved in your community is by doing something nice for a neighbor. If you have an elderly, or less-mobile neighbor, consider lending a hand with property upkeep – raking leaves, shoveling snow, hanging holiday lights. Once cooler temperatures set in, elderly individuals or those with limited mobility might find it difficult to complete such arduous tasks. Small tasks go a long way too – helping with groceries or packages, bringing in a trash can, etc.



Start a Holiday Donation Jar with Your Family

If you have children, a holiday donation jar is a great way to get everyone in the family involved in the holiday season. For instance, your children could donate a portion of their allowance to the jar. You could also match your children's donations and set a goal to reach by the end of the holiday season. Decide together where your funds will go so everyone is invested in the outcome.



Visit a Nursing Home or Children's Hospital

The holidays can be a lonely time for many people, especially those that are unable to go home or be with loved ones. Facilities like children's hospitals and nursing homes usually welcome visitors, but it’s important to call ahead of time to make sure. Ask what time is best for visiting, which residents are most in need of company, and what activities they might enjoy. You can plan to read stories, sing songs, or just have a friendly conversation.



However you decide to give back this year, know that even the smallest efforts can make a world of a difference to someone in need. Our community is stronger when we work together.










































September 2022









REAL ESTATE NEWS

Brought to you byJan Brinkman








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Smart-Home Devices May Save on Home Insurance
While smart-home devices can add a considerable amount of convenience and comfort to your home, they can also help you save money on your home insurance. There are a wide range of smart-home devices that you can have installed in your home - everything from smart thermostats to smart speakers. Before you purchase any of these devices, you should know which devices might save you some money.







Policy Discounts

Many insurance providers will provide discounts to a homeowner who installs a smart-home device that's designed to prevent theft, water damage, or fire damage. These discounts are generally applied to your monthly premium, saving you money every single month. While there are a wide range of devices available to aid in theft and damage protection, the ones that tend to be eligible for discounts are security cameras, smoke detectors, and water leak sensors.



Certain insurers may provide discounts for other devices like motion sensors or smart locks. You should speak with your insurance company to identify which devices will qualify you for a discount.



Device Discounts

There's also a possibility that your insurance provider has a partnership with one or more smart-home device companies. In this case, the device company may offer reduced prices for anyone who has a policy with the insurance provider. Your insurance carrier can tell you if they have any partnerships that qualify you for smart-home device discounts.



Before you have any of these devices installed, keep in mind that different insurance providers offer different discounts and benefits. Some may offer both policy discounts and device discounts! Speak with your insurance company to see what you are eligible for.



Why Insurance Companies Offer These Rewards

Insurance companies want to incentivize smart-home devices because these devices can mitigate expensive problems. When water or fire damage occurs, your home insurance provider may need to pay out a costly insurance claim. If a smart-home device can detect these issues early, your insurance provider can save money, which is why you're able to benefit from a policy discount and a potential device discount.



Take a smart water detector for example. This detector is commonly installed near your water heater. In the event a leak occurs, it would emit an alarm and immediately send a text alert to your smartphone. That notification allows you to respond immediately, rather than discovering the leak hours or days later, thus preventing substantial water damage.



Choosing to install smart-home devices in your home can improve your livelihood and help you prevent theft and damage to your home. Doing a little research with your insurance company before you purchase can save you money on top of that.






















Fun Activities to Get the Most out of Fall
While the warm summer months are great for family vacations and barbecues, the fall season is the perfect time to take part in some fun and festive local activities. Here are some ideas for fun fall activities for you and your family and friends to enjoy.



Go on a Picnic in a Nearby Park

Ahh, the crisp fall air! Mild temperatures and colorful scenery make fall the ideal time to go on a picnic in a nearby park. You can enjoy the changing leaves while eating a million different pumpkin-flavored items and other classic fall treats.



Attend a Local Fall Festival

If you want to get the most out of the cool fall season, think about attending a local harvest or fall festival. Depending on the size of the festival, you'll get the opportunity to eat delicious fall treats, play family-friendly games, and enjoy some quality time in the fresh air.



Another option is to visit a local farm or pumpkin patch. Many farms will set up corn mazes, hayrides, and petting zoos on weekends during the fall months. You can go pick out your own pumpkin and stay for the fun!



Go for a Nature Walk

Now that the weather is less hot, consider taking a short nature walk once a week. You get to enjoy the fall scenery and get some exercise at the same time. Plus, reconnecting with nature has been shown toreduce stress and boost mood. You can head to a nearby park or seek out hiking trails or open space for a more immersive experience. Alwayspractice safetywhen venturing outdoors.



Go Camping in Your Backyard

You don't need to travel long distances or trek into the wilderness to go camping – though that is certainly an option. In fact, you can enjoy all the fun of a camping retreat in your own backyard. Just set up your tent (or borrow one from a friend), bust out the s'more supplies, and you'll be ready for a fun family night under the stars.



Host a Pumpkin Carving Contest

Carving a pumpkin is an activity that people of nearly all ages can enjoy. All you need are some pumpkins and some carving tools. No tools? Make it a pumpkin painting party instead! You can make it a family activity or opt to invite friends and neighbors.



You can keep costs down by asking each person to bring their own pumpkin and/or carving tools. Attendees can take pictures and vote on their favorite carved pumpkins. After the party, consider roasting the pumpkin seeds for a healthy fall snack.



Tailgate a Football Game

Now that most football seasons have begun, you can make a day of cheering for your favorite team by tailgating before the game. Whether it's a big national team or just your local high school team, lots of fun can be had outside the field or stadium with fantastic game-day food, games, and atmosphere.



Fall is a wonderful season for activities of all shapes and sizes. Whether you want to socialize with friends and neighbors or enjoy some time to yourself you should be able to find several activities to match your interests.



 


 









































June 2022









REAL ESTATE NEWS

Brought to you by Jan Brinkman








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Housing Market Still Favors Sellers–but is that Set to Change?
Ever since interest rates decreased at the beginning of the pandemic, the real estate market throughout most of the country has heavily favored sellers. When interest rates decrease, more buyers enter the market to secure mortgage loans with low interest rates. High buyer demand means that sellers oftentimes receive multiple bids.



The combination of low interest rates, extremely quick sales, low inventory, and rapidly increasing price gains, has the housing market favoring sellers by a considerable amount. While this is still true today, market conditions may be set to change in the near future.







What the Future Indicates for Buyers

Over the past six months, interest rates have been steadily increasing. While rates averaged around 3.05% towards the end of 2021, they have since increased to an average of 5.10% as of May. Even though there are still a high number of potential buyers on the market, the higher interest rates have allowed the market to stabilize somewhat.



Keep in mind that home values rose by upwards of 20% over the course of 2021, which means that buying a home today may be somewhat more expensive than it was just one year ago. If you're set to buy a home, the housing market pivoting away from sellers is highly beneficial.



While home prices may have been lower one year ago, the increased buyer competition in the market made it difficult for many buyers to make bids that were high enough to satisfy the seller. Once demand decreases among buyers, home inventory will increase, which means that you may find it easier to purchase a home without needing to make an offer that's far higher than the listing price.



In general, you should expect demand to still be relatively high and housing inventory to be relatively low. However, both of these metrics have improved in recent months, which means that the market shouldn't be as intense as it was in 2021. Home prices are also expected to rise this year but shouldn't come close to the 20% increase that occurred last year.



What the Future Indicates for Sellers

If you're looking to sell your home but worry that the market may not be favorable for doing so, the truth is that the housing market still favors sellers. The main difference is that there may not be a lengthy bidding war when you list your home on the market. However, sellers still hold ample amounts of negotiating power when an offer is made. If you want to make sure that your home is sold without delay, perform any necessary upgrades and repairs before placing your home on the market.



While it's unlikely that the housing market will shift completely to favoring buyers, it's looking increasingly likely that the market will be more balanced over the next year or so. A balanced and healthy market is great for buyers and sellers alike.






















How to Spruce Up your Place for a Summer Sale
If you're interested in putting your home on the market, doing so during the warm summer months is a great idea. Once temperatures increase and plants begin to grow, it's much easier to enhance a home's curb appeal. Pair those curb enhancements with some interior upgrades and you’ll be on your way to a speedy summer sale.



Address Curb Appeal with Easy Tasks

When you want to spruce your place up, you should first devote some of your attention to addressing your home's curb appeal. Your home's exterior will be the first thing that potential buyers see when they visit your home. Making a good first impression is essential towards converting prospective buyers into legitimate offers.



Consider giving your front door a fresh coat of paint. Use bright colors like yellow or red to set the scene for the warmer summer months. If the door is relatively old, you may want to replace it entirely to get a better return on your investment. Make sure that your lawn is kept freshly mowed and that any noticeable weeds are pulled.



Consider New Appliances and Bathroom Upgrades

The two most important rooms for most buyers are the kitchen and the bathroom. You could enhance the appeal of your home by upgrading bathroom amenities or purchasing new kitchen appliances. In fact, stainless steel appliances are particularly tempting to new buyers according to a recent survey by HomeLight. You might also consider painting these rooms in a light neutral color to reflect more light and make them appear bigger.



As for bathroom upgrades, you could replace your lighting, paint your vanity, or upgrade your faucets. Even small touches like adding a nice rug or installing a beautiful shower curtain could enhance your home's appearance.



Don't Forget to Stage your Home

If you want potential buyers to be interested in your home, they need to be able to envision living there while they tour your property, which means that the place shouldn't be completely empty. It's also important that your home is free of clutter and doesn’t include too many personal items. If you're finding it difficult to properly stage your home, consider hiring a staging professional.



Add Some Plants and Artwork

During the hot summer months, your home interior should have a cool and calm atmosphere. You can achieve this environment by using cooler paint hues, adding some indoor plants, and hanging calming artwork. Travel and aquatic-themed pieces are a great choice during the summer.



Whether you're ready to sell this summer or a year from now, I can help you decide which improvements make the most sense for your property - call me anytime!










































May 2022









REAL ESTATE NEWS

Brought to you byJan Brinkman








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How to Avoid Homebuyer’s Remorse in a Hot Market
Buying a home is almost always a great investment, and of course it’s exciting to find and close on a home that you will get to call your own. That feeling of joy and confidence can fade quickly though if certain things are overlooked during the process. 43% of homeowners have at least one regret about buying their home, and that number jumps to 64% for millennials, according to a recentBankrate survey.



Here are a few tips for ensuring your home purchase is regret-free.







Get to know the neighborhood

Don't let your enthusiasm for a home run away with you. Before making an offer, plan on touring the neighborhood several times. If you see folks outside, stop and chat with them. We’ve found that neighbors love to talk about the neighborhood and will share both the good and the bad.



Do some research on local schools. Even if you don't have school-age children and don't plan to, buying in the best school district you can afford is a smart move. Homes there hold their value better and are easier to resell.



Consider other factors like crime rate, commute times, and distance to other things that are important to you like parks or restaurants. These things will have a big effect on how you feel about your new home once you are actually living in it.



Be patient

There’s no getting around it - the market is hot and buyer competition is fierce. In these conditions it can be tempting to snatch up any home that is halfway decent just to be done with it. Unsurprisingly, homes bought with that rushed mentality don’t always live up to their hype down the line.



Even if things are moving quickly, make sure you take the time to examine the details, get a home inspection, and think about what you really want in your home. Keep an eye out for red flags and be okay with walking away if a home does not meet your standards. Buying a home is a huge financial decision, and not one that should be rushed!



Remember your budget

Bidding wars are all too common, but it’s important to balance what you want with what you can afford. A bank may approve you for more than you want to spend every month, but outspending your budget will not improve how you feel about your home purchase down the line. It’s up to you to know what your true budget is, and factor in future maintenance costs, insurance, etc.



Work with experienced professionals

Working with a team you trust can help you avoid major regrets. Pick an experienced mortgage lender and loan officer that will help you evaluate all your options. Choose a knowledgeable real estate agent who listens to your needs, knows the area well, and will negotiate with sellers to get you what you need – I pride myself on these traits and would love to demonstrate my value to you.






















Conserve Water on Your Spring/Summer Landscaping
Now is the time of year when lawns come out of dormancy - a time many gardeners eagerly await. This is also the time of year that we trade large heating bills for sometimes equally large water bills. As you consider your gardening plan this spring, why not resolve to use less water?



We use a lot of water

TheUS Environmental Protection Agencyclaims that, across the country, watering our landscaping accounts for nearly one-third of all residential water use, totaling nearly 9 billion gallons per day. In addition, some experts estimate that as much as 50 percent of water used for irrigation is wasted due to evaporation, wind, or runoff caused by inefficient irrigation methods and systems.



Start with the lawn

Sure, a lush, green lawn can increase a home’s curb appeal, but if you plan to stay put for a while, you can consider reducing your lawn’s size by replacing some areas with mulch or hardscaping. To maintain size, but reduce water usage, you can replant with a less thirsty variety of turfgrass and/or not cut your grass so short. Longer grass promotes deeper root growth, resulting in a more drought-resistant lawn, reduced evaporation, and fewer weeds.



Water more efficiently

Water your lawn before 10 a.m. for max efficiency.ThisOldHouse.comrecommends watering between 4 a.m. and 6 a.m. “At this cool time of day, it’s less likely the moisture will evaporate before your grassroots can absorb it from the soil,” they explain.



Plant early

Planting new plants in spring (vs. summer) gives them numerous advantages. Milder conditions are less harsh on the young leaves and buds, and lower temperatures require less water for the plants to get established.



Go native

Choosing plants native to your area is another way to save effort and water.Native, drought-resistant plantsrequire less maintenance and less water once established and have the added benefit of providing habitats to beneficial pollinators and soil organisms.



Conserving water doesn't mean you have to convert your yard into a rock quarry. Making some minor changes can reduce landscape water use but still leave your property looking beautiful and alive.



 


 









































February 2022









REAL ESTATE NEWS

Brought to you byJan Brinkman








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Selling your home this spring? Here’s your winter to-do list
Planning to sell your home this spring? While this winter is expected to bring a record-breaking number of buyers to the market, spring will bring more inventory and more competition.



Why wait until just before your home goes on the market to prepare it? There are plenty of things you can do right now that will cut down on the time and effort you’ll need to spend in the spring.







Have your Home Inspected

One of the most common reasons a home sale falls apart or is delayed is because of problems that the buyer learns about after the home inspection. Typically, price negotiations will reopen, but if the problems are beyond the buyer’s budget, they may just walk away from the deal.



If you have your home inspected now, you will not only avoid unpleasant surprises in the middle of the transaction, but you'll have the rest of winter to get any repair projects out of the way. Chip away at these projects steadily and by spring your home could be in good shape.



The pre-listing home inspection isn't a must, but if you’re concerned about any problems the home might be hiding, it’s best to bring them to light now.



Get a Head Start on Curb Appeal

Most landscaping tasks will have to wait until spring, but if you have inside space and a sunny window, you can get a head start by growing your own flowers from seed. Just wait until after the last frost to plant them outside.



You can also consider touching-up any chipped paint on doors and trim, creating an outdoor seating area, or updating your front door hardware. Replacing a ratty mailbox, installing new house numbers, and purchasing a new front porch doormat are other great ways to spruce up your curb appeal over the winter months.



Invest in Buyers' Favorite Features

You know those weekends when it’s just too cold and miserable to leave the house? What better way to pass those gloomy days, than by adding some nice touches to the interior and exterior of your home.



TheNational Association of Home Builderssurveyed prospective home buyers and learned that the top two desired features in a home are a laundry room and exterior lighting. A whopping 87% of home buyers will appreciate an investment you make in either of these areas.



How to get started? For your laundry room (or nook or closet), take this opportunity to add function. Consider adding a shelf, storage cabinet, or a wall-mounted drying rack.



As your luck would have it, wireless lighting has come a long way thanks to advancements in power and power storage technologies. Does your home have a path that could some extra visibility? A side yard that could use a motion sensor light? Shine some light on those darker areas to delight prospective buyers.



House prep may be less appealing than bingeing your favorite TV shows all winter, but doing some legwork now will help to ensure that your home will be the star of the spring real estate market.






















The Germs are Coming from Inside the House
We encounter a host of germs every day, from bacteria and parasites to, yes, viruses, and the battle against them begins at home. Grab some disinfectant wipes, and let's break down the germiest items in your home.



Kitchen & Bath

Studies of germs in American homes find, unsurprisingly, that the kitchen is the most germ-ridden room. The biggest offender: your trusty sponge. Sponges can contain millions of bacteria and can quickly spread it over every surface in your kitchen. Using a paper towel or disinfectant wipe is a more effective method to clean countertops and other hard surfaces.



In the bathroom, the toothbrush holder is the biggest germ culprit, meaning yes, it’s more germ-ridden than the toilet. Yuck. Cleaning your toothbrush holder weekly will help cut back on germs and give you peace of mind when polishing your pearly whites.



Another surprising bathroom germ culprit: faucet handles. Yes, even diligent hand-washers are at risk, as the faucet's handles are more infested with germs (especially e. coli) than the toilet. Leave a tub of disinfecting wipes near bathroom sinks and urge family members to wipe down the faucet and handles after they use them.



The Office

Your keyboard is full of cooties. Well, not exactly, but you may never look at a keyboard the same way when you learn that it’s dirtier than your bathroom.A studyby the International Journal of Environmental Research and Public Health found bacilli, staphylococci, streptococci, and micrococci, among other germs, on keyboards in the home.



Researchers recommend disinfecting the keyboard (and other electronics) at least once a week with an alcohol wipe or solution with 60-80% concentration. Alcohol evaporates quickly, avoiding potential electronic damage from excess moisture.



Living Room

Clean that clicker! We’re willing to bet that not many people sanitize the TV remote, but they should. It’s the second germiest electronic in the average household (laptops being the first), which makes sense when you think about how many hands touch it on a regular basis. Use disinfecting wipes to sanitize your remote at least once a week. You’ll find a list of disinfectants on theU.S. Environmental Protection Agency's website.



 






































June 2021









REAL ESTATE NEWS

Brought to you byJanBrinkman








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Tips for Gardens Great and Small
Like the fabled “Victory Gardens” of WWII before them, urban and backyard vegetable gardens became a vital source of food and purpose for many people last year when world events threw supply chains into disarray. A year has passed, but interest in do-it-yourself food production has remained, and more and more DIYer's are getting into growing their own crops.



Your ability to grow fruits, vegetables and a variety of herbs at home depends primarily on just three things: climate zone, space available and your level of commitment. With plenty of warm days ahead, it's not too late to get started on a garden of your own.



If you're limited to an indoor garden, consider hearty options like avocados, carrots, microgreens, lemons and scallions. You'll need some large, south-facing windows to have a successful garden. If that's not an option, grow lights and hydroponic kits have become a popular option in recent years as they've become more and more affordable.







For outdoor gardening, the first step is to check local zoning ordinances and/or homeowner's association rules. Then determine your plant hardiness zone to help narrow-in on recommended plants for your area. Like anything else, having a solid plan in place is critical.



When it comes to plot-size, people tend to envision lush rows of crops and tilled soils, producing plant after plant of vegetable-producing crops. If you're lucky enough to have such ample space at home, you're limited only by the time and effort you want to expend.



If space is scarce, never fear. Urban gardeners have developed innovative ways to garden in small spaces.

  • Go vertical:If space is limited, consider a garden wall. You can utilize vertical space by attaching planters to exterior walls that get lots of sun exposure. Don't have an appropriate wall? You can find prebuilt ‘grow towers' with a quick internet search, or build your ownDIY versionusing a large plastic drum, some PVC pipe and a drill.

  • Garden in other containers:Use containers of all sorts on your porch, balcony or patio to maximize your growing space including buckets, planter boxes, hanging baskets, pots, and barrels.

  • Create a rooftop garden:Utilize the space that most of us never even think about, your rooftop! If you have a flat space on your roof and a safe way to access it, consider designating that area as your growing space. Just make sure consult a professional to ensure that your roof can carry the load.


If gardening at home just isn't an option, check to see if there is a community garden in your area. Community gardens can be a way to share in the work, build community bonds and enable others to participate. With the right equipment and some sweat equity, any community can turn a vacant lot into a food-producing zone.



However you decide to grow your home-garden, once you've tasted your very first home-grown tomato or finished your first batch of pesto made from your home-grown basil, you'll know the hard work was worth it!










































May 2021









REAL ESTATE NEWS

Brought to you byJan Brinkman








 























Buying Season is Back. Here's What to Expect.
With peak buying season upon us, here's what analysts are expecting to see this year:



Increasing Mortgage Rates

It appears, depending on how the economic recovery progresses, that mortgage rates could continue to increase. Earlier in the year, rates were holding under 3%, but those rates have steadily increased over the past several weeks. As more and more Americans are vaccinated, it's expected that economic recovery will continue, and this will likely contribute to an upward movement in mortgage rates. If you're thinking of buying this summer, it may be in your best interest to lock in a rate as soon as possible.



Inventories Could Increase

Many home shoppers found the lack of inventory to be a major source of frustration during the past year. It was difficult - if not impossible - to find available properties, and when something went on the market, it was often scooped up in days or sometimes just hours.



Some analysts are expecting to see increased inventory this year. As more people become vaccinated and a general sense of stability returns, home sellers who were deterred from making a move in 2020 will be more likely to list their properties.







Millennial Movement

Another trend that could continue influencing the real estate market this spring and beyond is an increase in millennial buyers. Nearly five million millennials are set to turn 30 this year, and they now comprise the biggest segment of home buyers. In 2018, millennial homeownership was at record lows, but there's evidence that is changing.



Around 86% of younger millennials and 52% of older ones are buying their first homes, and some are buying luxury properties that are well beyond what you'd consider a starter home.



Millennials will likely drive the market throughout 2021. A survey from the National Association of Home Builders in the fourth quarter of 2020 found that 27% of millennial respondents planned to buy a home in the next 12 months, up from 19% the year before.



The Online Trends Are Growing

Online real estate services grew in functionality and popularity this past year.



3D home tours, virtual agent/broker teleconferencing, and online closings aided by tools like DocuSign are all ways that technology is facilitating a simpler home selling or buying experience. Regardless of the state of the pandemic, the convenience afforded by online real estate technology is here to stay.






















Private Mortgage Insurance Explained
When a lender looks at a loan application, their main question is "what risk do I take on by issuing this loan?" Credit checks, bank statements, employment verification – all the documentation required when getting approved for a loan is in service of assessing what the odds are that the loan will go into default. This is why a down payment is such a crucial part of obtaining a home loan. When a borrower has a substantial down payment (20 to 30% or more), the lender's exposure is lessened in the event of a default.



This 20-30% figure used to be required, yet clearly this kept a lot of people from realizing the benefits of homeownership, especially first time buyers. That is until 1957, when Max H. Karl, a real estate attorney, founded Mortgage Guaranty Insurance Corporation and invented the modern form of private mortgage insurance.



PMI is designed to address the hefty down payment hurdle. Instead of coming to the table with 20% or more for a down payment, a private mortgage insurance policy allows consumers to buy and finance a home without a large down payment. With PMI, the borrower pays a small percentage of the total loan amount (0.3 - 1.5%/year) in addition to their mortgage and insurance payments. As an example, a $200,000 loan with a PMI rate of 1% will come out to $167 dollars extra a month for a borrower. It's not nothing, but for many it's a manageable trade off.



Yet sometimes PMI can get a bad rap, as something to be avoided at all costs. Until the end of the 90's this attitude was understandable – homeowners had limited resources to cancel PMI and were often stuck with it for the life of their loan. That changed with the Homeowners Protection Act of 1998. It required automatic termination of PMI when the loan balance reaches 78% of the original value through natural amortization. Borrowers can often drop their PMI even before reaching that 78% figure – once a borrower reaches 20% equity in their home, they can request a cancellation of PMI. As home prices continue to rise, borrowers build up equity in their homes faster, meaning they can often drop PMI payments earlier than they think.



If you're curious about buying a home for the first time, or you're wondering how the value of your home has changed over time, reach out to me. I have up-to-date market information to help you make decisions with confidence.
















































March 2021









REAL ESTATE NEWS

Brought to you by Jan Brinkman








 























Your way-too-eager, probably over-the-top early spring checklist
Let's face it – it's been a long winter, but brighter and warmer days are upon us. If you're the type of person who likes to be prepared, it isn't too early to gear up for lawn and garden season. Here are some tips to help you hit the ground running this spring:





  • Test the content of your soil with a kit. Soil test kits are designed to determine levels of PH, nitrogen, potassium, phosphorous, and other micro/macronutrients in your soil. An accurate test will tell you how to amend your soil for optimum growing.

  • Disinfect any tools that will touch vegetation to prevent the spread of bacteria, fungi, and soil pathogens. Soak lawnmower blades, shovels, trowels, rakes, and pruners for 30 minutes in a solution of 10% bleach and 90% water.

  • Tune up your lawnmower. If you didn't already do it in the fall, drain your lawnmower of old fuel. Add fresh fuel, replace the spark plugs, clean/replace the air filter, change the oil, and sharpen the blades.

  • Don't ignore the supporting cast. Service your leaf blower and trimmer according to the manufacturer's guidelines. Stock up on trimmer line.

  • Hand tools need love too. Sharpen the edges on your pruners, clippers, and digging tools. Lubricate any hand tools that have moving metal parts, then lightly coat the metal with mineral oil to prevent rust. Sand any rough patches on wooden handles. Use linseed oil to seal the wood and prevent shrinking.

  • Check fittings and filters on irrigation systems. Check the rubber washers on your hoses, sprinklers, and nozzles for cracking and replace if necessary.

  • Clean pots and planters to remove mold, fungi, and tiny pests. Use a brush and mild soap to clean, then rinse and let dry.

  • Inspect lawn furniture. Check wood parts for splintering, pests, rot, and other damage. Sand and repaint/restain these parts if necessary. Inspect cushions and covers and wash if possible.

  • Maintain fencing, gates, and other wood features. Replace warped or rotting pieces and repaint/restain where needed.


Some of these tasks may seem over the top, but knocking them out now while the weather is still less-than-ideal will give you more time to relax during the warmer days ahead.






















Saving on kitchen cabinets
When it comes to home renovations, a kitchen remodel is on the higher end of the price spectrum. One of the biggest line items in any kitchen remodel is cabinetry, which can account for up to 40% of your total budget. If you're willing to think outside the box a little, you can save yourself some money and still make a solid long-term cabinet choice.



As always: do your research

Take time to learn about the materials that separate budget cabinets from premium options.



Particleboard is the cheapest option, but it's not incredibly durable and degrades easily if it comes in contact with water.



Medium-density fiberboard has a slightly higher price tag but boasts superior quality without breaking the bank. MDF is very water-resistant and actually resists warping and expansion better than expensive hardwoods.



Solid wood cabinets are beautiful and durable when cared for properly, but they're expensive, heavy, and just as susceptible to damage from moisture and fluctuations in temperature as some cheaper options.



Consider pre-built boxes with premium doors

If you want the high-end look without the price tag, a creative option is to use premade boxes from IKEA, Lowes, or Home Depot, but order custom doors. You'll get the outward look of custom cabinets at a fraction of the cost. This is an especially smart option if the sides of your cabinets are mostly concealed by walls.



Get unfinished cabinets

You'll save money by purchasing unfinished cabinets, but you'll still have to paint or stain them. Stain is something you can do on your own, but achieving a clean paint job is tricky and may require the help of a professional. You'll have to compare costs to decide if it's worth it.



Use open shelving

If you want a new look for your kitchen but the numbers still aren't lining up, consider open shelving. When executed well, open shelves can look great, and you'll save thousands not buying cabinet uppers. Your kitchen will feel brighter and more open, but just keep in mind this option may not appeal to every potential buyer when it comes time to sell.





































 
 
 
 





















 


 
 
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