Author: stallion-admin

Are you one of the many would-be homebuyers holding off on purchasing a home, hoping for a favorable shift in the market? With insurance, property taxes, and maintenance costs on the rise, it’s understandable why some are hesitant to take the plunge. However, the reality is that these factors affecting affordability are compounded by the continuing increase in home values. The dilemma is clear: should you wait for conditions to improve, or should you act now?

The Affordability Challenge – Escalating insurance premiums, property taxes, and maintenance expenses are making homeownership less attainable for many prospective buyers. As these costs continue to climb, the dream of owning a home may seem increasingly out of reach. The strain on affordability is further exacerbated by the relentless rise in home values, especially in competitive markets where demand outpaces supply.

The Waiting Game – In the face of these challenges, some buyers are adopting a wait-and-see approach, hoping for a market correction or a slowdown in price appreciation. However, this strategy may be misguided. History has shown that home prices tend to trend upwards over the long term, with only occasional periods of decline or stagnation. Consequently, waiting for a significant dip in prices may prove to be a futile endeavor.

Seizing the Opportunity – Rather than waiting for conditions to improve, prospective buyers are urged to consider taking action now. Despite the current challenges, there are compelling reasons to make a move sooner rather than later. By purchasing now, buyers can lock in today’s interest rates and refinance if the opportunity presents itself. You can secure a foothold in the housing market before prices climb even higher.

Mitigating the Impact – While rising costs and increasing home values may seem daunting, buyers who act promptly can mitigate their impact on homeownership affordability. By carefully evaluating their financial situation and exploring available options, buyers can make informed decisions that align with their long-term goals. Additionally, working with a knowledgeable real estate professional can provide invaluable guidance and support throughout the buying process.

In today’s competitive real estate market, waiting for ideal conditions may not be a viable strategy. With affordability concerns and rising home values on the horizon, buyers who delay their home purchase may find themselves at a disadvantage. By seizing the opportunity to buy now, buyers can navigate the challenges of homeownership more effectively and secure their place in the market for years to come.

Download the Building a Case for Homeownership Today information guide as well as our Buyers Guide. We’d love to get together to answer your questions.

Your dream home can become a reality and the journey toward homeownership starts with planning.

Your dream home can become a reality and the journey toward homeownership starts with planning.

The familiarity and trust established in a friendship may be the ideal foundation for a successful business relationship. Having a loyal ally from their social circle adds a new level of insight and service to such an important financial decision in their lives.

When considering the choice of engaging a friend who also happens to be a real estate agent in the purchase or sale of their home, consumers are presented with a multitude of compelling reasons to embrace this option. Firstly, the pre-existing level of trust between friends lays a solid foundation for effective communication and transparency throughout the transaction. This trust, combined with the highly personalized service that a friend-agent can provide, ensures that the process is tailored to the individual’s specific needs and preferences. Additionally, friends understand each other’s lifestyles, priorities, and goals, allowing for a deeper level of advocacy and support throughout the real estate journey.

Accessibility is another key advantage of working with a friend-agent, as the familiarity and comfort level shared between friends often result in prompt responses and availability during crucial stages of the transaction. Furthermore, the common goal of achieving a successful real estate transaction strengthens the collaboration between friends, fostering a sense of loyalty and commitment to each other’s best interests. With a friend-agent, clients can expect insider insights and valuable tips about the local market, along with a flexible and accommodating approach that aligns closely with their needs and preferences.

Moreover, the shared values and understanding between friends ensure that the agent’s efforts are aligned with the client’s long-term goals and aspirations. Beyond the transaction itself, utilizing a friend as an agent can strengthen the bond and deepen the relationship, as both parties navigate this important milestone together. Overall, the decision to engage a friend who is also a real estate agent offers numerous benefits, from enhanced trust and personalized service to insider insights and strengthened relationships, making it a compelling choice for many consumers.

A friend who also happens to be an agent understands the delicate balance between friendship and business and would never jeopardize the relationship for the sake of a transaction. In fact, they are likely to go above and beyond to safeguard their friend/client’s best interests, leveraging their expertise and dedication to ensure a successful outcome while preserving the integrity of the friendship.

If a buyer or seller has reservations about engaging in a real estate transaction with a friend who also happens to be an agent, it’s crucial to address these concerns openly and honestly. Rather than allowing apprehensions to fester and potentially strain the friendship, initiating a candid conversation with the friend-agent can provide clarity and alleviate any uncertainties.

By expressing their concerns and discussing expectations upfront, both parties can navigate the transaction with transparency and mutual understanding. Ultimately, opting to work with a trusted friend who is an agent, rather than a stranger, not only ensures professional guidance but also strengthens the bond of friendship through open communication and shared goals.

If a person feels strongly about not working with their friend/agent, they should consider asking for a referral to a trusted colleague of theirs who would represent their interests effectively. Your friend would want to support you even if it’s not as your agent.

 

Buying a home is a sizable investment relative to each buyer. Even if a person has purchased a home in the past, it benefits the buyer tremendously to work with a professional to advise them through the process and the buyer’s agreement spells out the specifics.

Household pests can be a persistent and an unwelcome challenge for homeowners, disrupting daily routines and potentially posing health risks to occupants. From ants marching across kitchen countertops to rodents scurrying through attics, the presence of pests can create a sense of unease and frustration.

However, understanding the common pests that may invade homes and implementing effective solutions can help mitigate these issues. In this article, we will explore the various types of household pests encountered by homeowners and provide practical solutions to address and prevent infestations, ensuring a cleaner, healthier living environment for you and your family.

Ants are often found in kitchens and around food sources and can be a common nuisance in homes, especially during warmer months.  Solution: Keep kitchen surfaces clean, store food in airtight containers, seal cracks and openings where ants can enter, and use ant baits or natural repellents to deter them.

Cockroaches are resilient pests that can thrive in various environments, including kitchens, bathrooms, and basements.  Solution: Maintain cleanliness, eliminate food and water sources, seal cracks and gaps, use cockroach baits or traps, and consider professional pest control if infestation persists.

Mice and rats can enter homes through small cracks and openings, causing damage to property and posing health risks through contamination of food and spreading diseases.  Solution: Seal entry points, keep food stored securely, eliminate clutter, set traps, use ultrasonic repellents, and consider professional extermination for severe infestations.

Termites can cause significant structural damage to homes by feeding on wood, often going unnoticed until the damage is severe.  Solution: Regular inspections, address moisture issues, remove wood-to-soil contact, use termite-resistant materials, apply chemical treatments or bait systems, and seek professional help for severe infestations.

Mosquitoes can breed in standing water and are known vectors for diseases such as West Nile virus and Zika virus.  Solution: Eliminate standing water, use screens on windows and doors, install mosquito nets or outdoor traps, use mosquito repellents, and consider professional mosquito control services for severe infestations.

Flies can be a nuisance indoors, especially in areas where food is present, and can also spread diseases by contaminating surfaces.  Solution: Keep food stored properly, clean up spills and crumbs promptly, use fly screens on windows and doors, install fly traps or electronic zappers, and maintain good sanitation practices.

Fleas are commonly associated with pets but can also infest homes, causing itchy bites and requiring thorough treatment to eliminate.  Solution: Treat pets with flea control products, wash pet bedding regularly, vacuum carpets and upholstery frequently, use flea bombs or foggers, and consult a veterinarian for severe infestations.

While most spiders are harmless, some species can be venomous and pose a threat to humans. They often take up residence in dark, secluded areas of the home.  Solution: Seal cracks and gaps, reduce clutter, keep outdoor vegetation trimmed, use spider repellents or natural deterrents, and remove webs regularly.

Nests built by wasps and bees around homes can pose a risk of stings, especially to those allergic to their venom.  Solution: Remove nests carefully, keep outdoor areas clean and free of food debris, use insecticidal sprays or dusts for nest removal, and consider professional extermination for large or dangerous nests.

Maintaining a pest-free home requires vigilance, consistency, and a proactive approach to pest management. By identifying common household pests and implementing targeted solutions, homeowners can effectively control infestations and minimize the risks associated with these unwelcome visitors. By staying informed and taking proactive steps, you can enjoy peace of mind knowing that your home is a haven-free from the disruptions and health hazards posed by household pests.

Contact us if you would like a recommendation for a trusted pest control service.

Upcoming changes in real estate transactions are imminent following the resolution of significant class action lawsuits involving sellers and the National Association of REALTORS� along with numerous leading real estate firms nationwide. These changes will have implications for sellers, buyers, and agents alike.

There has been a lot of news coverage in the past few weeks but unfortunately, much of it has added to the confusion on how things will change rather than clarify it.

It was reported that since the seller will most likely be paying only their commission, the price of homes will come down. That is very unlikely to happen. The value of a home is not determined by whether a commission is paid nor the amount of it.

In the terms of the settlement, which is still to be approved by a court, the change will go into effect on August 17, 2024 but some companies will implement the changes earlier. The following excerpts are taken from the NAR Settlement Fact Sheet.

• MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home.
• Compensation continues to be negotiable between agents and the consumers they serve.
• Selling brokers must clearly state compensation offers to buyers’ brokers on each listing, which may vary and can even be zero.Compensation offers may not be communicated through the MLS.
• The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to:
  • Fixed-fee commission paid directly by consumers
  • Concession from the seller
  • Portion of the listing broker’s compensation
• The settlement expressly provides that sellers may communicate seller concessions � such as buyer closing costs � via the MLS provided that such concessions are not conditioned on the use of or payment to a buyer broker.

It is important for buyers to understand that in the many forms of buyer representation agreements that exist throughout the United States, there will be a provision stating the buyer’s agent fee for the transaction. In the past, the most common way the fee was handled was through an agreement that the seller would pay a specific amount to the buyer’s agent or that the listing fee would be shared with the buyer’s agent.

The market will be in a state of uncertainty as to the different ways the buyer’s agent will be compensated. The most common ways would be:

1. The seller will offer cooperative compensation.
   1. If the fee was less than stated in the buyer rep agreement, the buyer will be responsible for the difference.
   2. If the fee was more than stated in the buyer rep agreement, without exceptions addressing this specific condition, the buyer will have some options such as receiving it as a rebate at closing.
2. If the seller was not offering cooperative compensation, the buyer would cover it personally.
3. The buyer could direct their agent to only show houses whose seller is offering cooperative compensation.
4. Direct the buyer’s agent to negotiate in the offer to purchase agreement that the seller pays the buyer’s agent fee.

Consistently, almost 90% of homebuyers have chosen to collaborate with a real estate agent or broker, a trend expected to persist. Despite the rise of digital research and transactions, the obvious value provided by REALTORS� endures, with nine out of ten homebuyers expressing satisfaction and a willingness to recommend their agent to others.

National Association of REALTORS� members will remain steadfast partners for the countless Americans pursuing the dream of homeownership, providing reliable support and guidance along the way.

For more information and another viewpoint, see this Fortune.com article published April 3, 2024. Download a copy of 105 More Ways agents who are REALTORS� are worth every penny of their compensation.

The tax benefits of owning both a first and second home can be significant, with the IRS allowing taxpayers to deduct interest and property taxes on both properties as itemized deductions on their tax returns, albeit with certain limitations. Interest deductions are limited to the amount of debt incurred to buy, build, or improve the first and/or second home, with a maximum cap of $750,000. Property taxes, falling under the limitation of state and local taxes as set forth in the TCJA of 2017, are capped at $10,000 per year.

However, while second homes enjoy these benefits, they do not qualify for the Section 121 exclusion sale of principal residence rules. These rules only apply to a taxpayer’s principal residence, allowing couples filing jointly to exclude up to $500,000 of capital gain from the sale of their primary home, and single filers up to $250,000 of gain, provided they have owned and used the property as their principal residence for two out of the five preceding years.

Taxpayers considering selling their second home, which wouldn’t qualify for the exclusion, may explore changing its status to their principal residence. This entails owning and using the property as their principal residence for two years, along with careful documentation and planning to qualify for the exclusion. Indicators of a principal residence include making the second home the preferred mailing address for various documents, ensuring all family members reside there most of the time, having utilities in the homeowner’s name, and updating addresses with relevant entities.

Changing the status of the second home to the principal residence can be beneficial to avoid recognizing gain on the sale. However, it’s crucial to consult with a tax advisor to determine eligibility and ensure proper documentation and support for the change. This guidance will help navigate the process effectively and maximize tax benefits for the homeowner.