January 2025

There is a lot of uncertainty regarding the real estate market heading into
2019. That uncertainty has raised concerns that we may be headed toward
another housing crash like the one we experienced a decade ago.

Here are four reasons why today’s market is much different

They’re the generation of people born between the 1980s to early 2000s, or
also called the Generation Y. Many stereotypes have influenced how they
have been viewed by the public, including the typical assumptions that they
jump from one job to another, that they couldn’t even save for a down
payment, or that they overspend.

With all of the volatility in the stock market and uncertainty about the
Coronavirus (COVID-19), some are concerned we may be headed for another
housing crash like the one we experienced from 2006-2008.

Spring is almost here, and many are wondering what it will bring for the
housing market. Even though the pandemic continues on, it’s certain to be
very different from the spring we experienced at this time last year.

If buying a home is on your goal sheet this year, there are things you need
to do now to make it happen. But above all else, connect with a trusted
agent and lender so you have expert advice every step of the way.

7 Signs You’re Ready To Stop Renting and Finally Buy Your First Home | The Listing Team

While there’s certainly a huge debate on renting vs buying a home, no one could argue that it’s a major decision for many people. Some say renting is like throwing money down the drain and you’re just paying off someone else’s mortgage. Others insist that there’s no way they could give up their flexibility and be tied up in one place. If you’re finally thinking about taking the plunge into homeownership this year, how do you know that it’s time for you to take that leap? The decision on whether to rent or buy is a huge and costly endeavor, but you can always justify it based on logic and emotion. To help with your case, we’ve laid out seven signs you’re ready to make the switch from renter to homeowner.

 

1. Your rent payments keep going up.

Rents keep on escalating in many parts of the country, and this is one of the biggest reasons why any renter would want to buy a home. In some neighborhoods and real estate markets, the cost of renting is even higher than the average monthly mortgage of a single-family home. If you already feel trapped with the uncertainty of your rent payments, you might be better off purchasing a home where your mortgage is consistent, and you’ll be gradually putting equity into your biggest asset.

 

2. You have steady employment. 

Employment plays a huge role in the mortgage application process since lenders and mortgage companies take into account your employment history before approving you for a loan. Typically, they would want to see that you spent at least two years working for the same company or in a similar field, and that you’ll likely continue having the funds to pay your debt. If you’re a freelancer or a gig economy worker, you need to prove that you have a steady source of income for a couple of years through your W-2s, tax returns, and other documents. Just remember that for lenders, a stable job means a stable income, which lowers your risk as a borrower.

 

3. You’ve saved up for a down payment, closing costs, and other costs associated with owning a home.

 For many home buyers, the most difficult step in the home buying process is saving for a down payment, according to the 2019 NAR Profile of Home Buyers and Sellers. Setting aside money for a down payment towards their dream home is made even harder because of student loans and credit card debts. So if you have a stable job for a while now and your income has improved, there’s a better chance for you to save up enough extra money to cover up the added expenses of homeownership.And remember that the 20 percent down payment requirement for you to qualify for a mortgage is already a myth. In fact, mortgage insured by the Federal Housing Administration, also known as FHA loans, require only 3.5 percent of the home’s purchase price. Meanwhile, government loans guaranteed by the U.S. Department of Veterans Affairs (VA Loans) and the U.S. Department of Agriculture (USDA Loans) require no down payment at all, so there’s no need to scrape all your money just to cover the 20 percent down payment if it means leaving zero balance in your savings. You know you’re ready to get the keys to your new home instead of renewing your lease if you have also saved up for closing costs and other homeownership expenses, such as property taxes, maintenance funds, and homeowner’s insurance.

 

4. You’re managing your debts.

It isn’t necessary for you to be totally debt-free when you apply for a mortgage. Loan companies simply need to make sure that you aren’t carrying too much debt compared to what you make, and that you’ll be able to afford to take on additional responsibility, such as your potential monthly mortgage payment. They do this by determining your debt-to-income (DTI) ratio, which measures how much of your monthly income goes toward paying off your debts. Lenders ideally prefer a ratio lower than 36 percent, but borrowers with no more than 43 percent DTI ratio can still get qualified for a home loan. Getting your debt down to a more manageable level will help put you in a stronger position to get pre-approved. Assess your spending habits even while still renting, and change them as much as possible to improve your chances of finally owning your first place.

 

5. Your credit score is in good shape.

One of the biggest reasons why renters can’t make the leap to owning a home is because of their low credit score. Having good credit matters because it will determine how much money you can borrow and how much you’ll pay in interest. A good FICO score is usually about 690 and higher, although borrowers with a credit score as low as 500 can already qualify for a mortgage depending on the loan program. When was the last time you’ve checked your credit report? If your credit is looking healthier because you’re making timely payments and settling your debts, you can have access to more conventional loan programs with lower down payments. Once you have addressed this important issue, you can rest assured that homeownership is now within your reach.

 

6. You’re ready to settle in a neighborhood you love.

This one’s quite subjective, but your preferred location and your capability to settle in one place are also huge considerations when buying your first home. If you anticipate moving in a few years, you know that you’ll only live in a particular area for a year or two, or you just can’t imagine yourself being tied down in one place, renting is likely your best option since you can leave whenever you want. Renting is also your smarter bet if you want to test out the waters in different areas where you’re thinking of buying a place. But once you’re ready to settle down in a neighborhood you love, you’re secured in your job, and that you can see yourself putting down roots in the next five years, purchasing a home is your next sensible step.

 

7. You’re ready to finally become a homeowner.

In the 2019 Home Buyers and Sellers Generational Trends Report by the National Association of RealtorsⓇ, 29 percent of all buyers cited their main reason for purchasing was the desire to own a home. Your readiness to become a homeowner matters above everything else. When you own a property, you’ll be in charge of all the repairs, maintenance, and upkeep costs. If you’re not comfortable with these tasks and you’d rather leave the problem to a landlord, you may be better off renting for longer. Many people simply prefer to rent instead of taking advantage of lower interest rates because of this reason.If the idea of home maintenance no longer intimidates you, you actually enjoy fixing things up in your place, and you’re ready to stay for the weekends just to mow the lawn and do other yard work, these are signs that you’re finally ready to call a place your home. You know you’re ready for the huge responsibility that is homeownership and you’re ready to be your own landlord.

First impressions matter. Your home’s curb appeal — or lack thereof — is
the first thing that people see when they pass by your house. It says a lot
about you as a homeowner and an individual. Here are some of the greatest
benefits you can expect from giving your home the curb appeal it deserves.

Summer months are just around the corner, and if you own a vacation rental
in Florida, it’s time to prepare it for an upcoming busy season. After all,
you want to give your guests the best rental experience ever. If you do
that, you’ll make sure to attract many new guests and help your rental gain
popularity. The best part it isn’t hard to prepare your vacation rental for
summer, and it won’t take much of your time. It’s so easy that it might
inspire you to look for a second Florida property to turn into an
attractive rental.

Whether you’re moving somewhere new or you’re fixing up a place you hold
near and dear, renovating in the wintertime can have both its pros and
cons. Even with the exciting projects you likely have in store, there are
absolutely some safety and comfort concerns that might come into play when
you begin whatever project you want to accomplish. Whether you’re going big
with building and construction or you’re simply knocking out a wall or two,
here are a few safety tips.

Renovating Without A Permit? Here Are 7 Reasons Why It’s A Big No-No | The Listing Team

A home renovation is a great way to add value and satisfaction to your beloved abode. After all, who doesn’t love stepping into a new room, a finished basement, or a renovated bathroom?However, before “undertaking any of the character-building, heavy-lifting labor” there’s the time-consuming and costly process of obtaining renovation permits. How long a permit can be approved depends on the scale of the project. For smaller renovations, it may take as little as 24 hours. Expectedly, larger projects might take longer so homeowners may have a bit of a wait on their hands. So who says it isn’t tempting to save a bit of time and money skipping that step entirely and pushing ahead with your planned renovations?

Well if you do, prepare to face some terrible consequences. Unpermitted work refers to any modifications made to the home that should have been permitted but were not.

Aside from a sunken property value, your biggest risk may lie in the job itself. Without the proper permits, there’s no guarantee that your contractors will execute a professional job. The results of this could be disastrous. For instance, if you sell, those substandard improvements might cause you trouble during a home inspection.

It’s a nightmare to think about, but it means big trouble if your municipality or city office finds out you’re renovating sans-permits. Some cities will only inspect, but some will issue a stop-work order and may even slap a hefty fine on both the homeowner and contractor. Worse still, the city could order a teardown of the entire project with a subsequent order to redo any work done with the proper permits finally in hand.

Another area of concern is that any unpermitted additions may not be covered, and even violate your insurance policy. It is especially concerning if an accident or disaster occurred in that part of your home. If there’s been a house fire caused by faulty wiring due to poor electrical work, or if someone fell and seriously injured themselves you could be facing a costly nightmare.Filing an insurance claim for a scenario like this could be futile; your policy probably isn’t going to cover the issue, additionally, you may be heading towards a complicated, costly lawsuit.

As we mentioned earlier, failing to get permits could cause the value of your home to drop. Why? For starters, real estate information in your local municipality needs to be up to date to help maintain home values and stay current with taxes and insurance. Renovation permits will help ensure that your property keeps up with the latest health and safety standards. When you sell, an appraiser will assess your home in order to gauge its objective market value. Any unpermitted work brought into concern because of safety defects could depreciate your home’s value. Even worse, you could be fined with the appraiser also demanding that the work be removed and redone—this time with proper permits secured. Likewise, any room additions not up to code will be excluded in the square footage stated in your “updated”  home listing. That means buyers will think your home is smaller than it really is.

Notwithstanding the huge laundry list of features and amenities potential buyers look for in a new home, above all is a safe and secure place. Should they discover the house they’re looking at has undergone an unpermitted structural remodel, it can imbue them with uncertainty, causing a loss of confidence in your property, and resulting in some serious purchase reconsiderations.The buyer might think you hired someone unqualified to do the work because you didn’t even bother getting permits. They may feel that the completed renovation is unsafe, leaving them clouded with worry about long-term problems down the line. A good buyer’s agent is going to make sure that permits were pulled on any significant additions done to the property, so there’s no escaping the consequences. However, if permits were secured for the renovations, concerns like these all go out the window, with the buyer immediately given peace of mind and assurance, enticing them to make a good and reasonable offer.

Well, it might be overreacting, but not getting permits for a significant modification or addition can stop a home sale. Wait, what? You heard right! Once your home has entered the market, a subsequent home inspection and appraisal will follow as is required by the selling process. The inspector will ensure that buyers know exactly what they’re getting while the appraiser will look to protect the interests of the bank or lending institution, ensuring proper standards are met before they approve the loan. Both professionals can easily request public records on your home, including the permits (or lack thereof) for any improvements made, assuring that the property is not only habitable but in good working order.It could cost you the home sale if the bank doesn’t want to fund the loan because the appraiser’s requests were not met, or if the potential buyer backed out due to personal uncertainty with regard to property safety and structural integrity.  

Admittedly, securing a renovation permit can be a hassle. You have to provide your local municipality with your detailed plans for the remodel, as well as additional documentation if needed. Moreover, permits come with corresponding fees. However, proceeding to push through with a renovation without proper paperwork can lead to dire consequences, as discussed above. The commonalities shared by those risks are time wasted, money squandered and maybe a forthcoming lawsuit. Not to mention, most likely you’d also be required to undo all the work done, taking you and your home back to square one on what could have been a great addition.

 

Tips:

Know what renovations require permits. Any substantial, structural, or significant remodel requires the homeowner or seller to get a permit. These major renovations could include electrical or plumbing work, basement refurbishment, or room addition. However, if you are only updating or sprucing up an existing space, then permits might not be necessary.

Consult with your city building committee. However, building codes and the legal requirements to pull a permit vary with every city. With this in mind, it’s important to check with your local municipality or city building code committee to make sure there won’t be any problem before you tear down a wall or remodel anything.

Hire only licensed and reputable contractors. You can rest assured that they won’t work without securing proper permits, giving you peace of mind that their work will be up to code.