Blog - Lisa Eagan

3 Important Factors That Affect Your Real Estate Transaction

November 21, 2018 by Lisa Eagan

3 Important Factors That Affect Your Real Estate Transaction The real estate market is quite different from other markets and can be confusing for even the most experienced buyers and sellers. You will need the help of a real estate agent whether you are an experienced buyer or doing it for the first time.

Even with the help of an agent, you can educate yourself on some of the basic elements of a real estate transaction in order to make yourself more comfortable throughout the process.

Here are 3 things that you should be aware of before you start a real estate transaction:

Market Demand And Sales Price

There are many factors that determine the appropriate sales price at which you sell or buy a piece of property. Among them is the market demand and other recently sold homes in the immediate area that match the characteristics of your home. Real estate agents can prepare a comparative market analysis (CMA) to help you understand the recent activity in your market and the best price to list your home at.

If you’re a buyer, you can ask your agent to run a property listing report to show you all of the comparable homes that are currently listed in your area. You can even get set up on an automatic email update of any home that meets your criteria as soon as it comes on the market or there is a change in the listing price.

A professional real estate agent can be of great help when it comes to finding customers for your property. As a buyer, you can seek for the services of a real estate agent that will help you in getting a property at affordable prices.

Absorption Rate

This term is quite common among real estate agents, however a lot of consumers haven’t ever heard of it. It is the amount of time taken to sell a piece of property that is listed in a particular market based on the total housing inventory and the average monthly properties sold. The absorption rate can guide you if you are planning to make investment in a particular area or if you are planning on selling your home.

For instance, if you know the average time on the market for a home similar to yours is 90 days you can plan approximately when to list your property in order to move at a specific time. It’s important to understand that many factors determine whether a particular home sells within the average time frame, but it can be useful as a guide. A professional real estate agent is your best resource to find out the details on your local market absorption rate.

Escrow

There are many buyers and even sellers that have seen funds mishandled when making a private real estate transaction. The best way to prevent this from happening is by opening an escrow account. This account is virtually always opened with an independent third party on behalf of the buyer and seller at the beginning of the transaction.

Some escrow companies also handle the title research and title insurance elements of the real estate transaction. They hold all of the documents and money until the transaction has been completed. At the end of the transaction they balance all of the expenses and deposits and ensure that each party is compensated appropriately.

As always, working with a team of real estate professionals is the best way to navigate all of the elements of your next real estate deal.

What Does A Home’s Energy Rating Imply?

November 20, 2018 by Lisa Eagan

Your home’s energy rating is an evaluation of your home’s overall energy efficiency. If your house’s rating is high, it means your potential for energy loss is also high. Bringing your rating numbers down means that your home is becoming more energy efficient.

Your home’s energy rating is based on several things. When your energy company does a home energy audit, they are looking for ways that your home or its components are wasting energy. A low rating means that a home is more energy efficient than one with a higher number. For example, if a home is rated at 70 on the HERS Index, it is approximately 30% more energy efficient than a home built in 2006. There are many factors that are taken into consideration when determining a home’s energy rating.

Here are several things you can do to bring your numbers within an acceptable range.

Energy Efficient Appliances

All new appliances manufactured within the United States must now carry an energy rating label that states its efficiency and how much energy is required for it operate. The Environmental Protection Agency has determined that, in order to save as much energy as possible, appliances are to be manufactured to certain specifications that will allow them to be operated using as little energy as possible.

HVAC System

One of the biggest energy drains in your home is your HVAC system. With regular maintenance and prompt repairs, your heating and cooling system can operate at maximum efficiency for many years to come. Changing the filters every month and keeping the ductwork and vents properly cleaned can also help your HVAC system to function efficiently and may reduce any type of energy waste.

Insulation, Windows, And Doors

Other areas where energy can be lost is through the roof and the windows and doors. Adding more insulation to your attic may prevent energy from being lost through the roof. It can help to keep your home cooler during the summer months and warmer during the winter months. Replacing older windows with newer, more energy efficient windows can dramatically reduce energy loss and improve your home’s energy rating. The same is true for older doors that may have worn weatherstripping.

The government offers rebates on your federal taxes for each home improvement you make that improves your home’s energy rating. If you are interested in learning more about energy ratings, contact your local utility company to have an energy audit performed. They will provide you with the answers you’re looking for.

If you are in the market for a new energy efficient home, be sure to contact your trusted real estate professional.

What’s Ahead For Mortgage Rates This Week – November 19th, 2018

November 19, 2018 by Lisa Eagan

What’s Ahead For Mortgage Rates This Week – November 19th, 2018 Last week’s economic news included readings on inflation, core inflation and retail sales. Weekly readings on mortgage rates and first-time jobless claims were also released.

Inflation, Retail Sales Rise in October

Commerce Department readings for October showed higher inflation and retail sales. Consumer Price Index rose by 0.30 percent and met expectations. September’s CPI reading was 0.10 percent. Core CPI, which excludes volatile food and energy sectors, also met expectations with a reading of 0.20 percent growth. September’s reading was 0.10 percent. Analysts attributed the highest reading in nine months to higher costs of fuel, rent and used cars.

Retail sales recovered from September’s negative reading of -0.10 percent and surpassed expectations of 0.60 percent growth with October’s reading of 0.80 percent. Higher fuel prices prompted the jump in retail sales after August and September readings were revised to negative readings. Recent declines in oil prices were expected to stabilize gas prices for consumers.

The reading for retail sales excluding autos also exceeded expectations with a reading of 0.70 percent. Analysts expected growth of 0.50 percent based September’s revised reading of -0.10 percent. Looking forward to the holiday shopping season, analysts expected robust readings for retail sales. Increased wages and a strong labor market were expected to help consumers during the holiday shopping season.

Mortgage Rates Stabilize

Mortgage rates were mostly unchanged last week, which provided a reprieve for home buyers. Freddie Mac reported that rates for 30-year fixed rate mortgages averaged 4.33 percent and was unchanged from the prior week. Mortgage rates for 15-year fixed rate mortgages rose three basis points and averaged 4.36 percent.

Rates for a 5/1 adjustable rate mortgage averaged 4.14 percent and were unchanged from the prior week. Discount points averaged 0.50 percent for 30-year mortgages and 0.40 percent for 15-year fixed rate mortgages. Discount points for 5/1 adjustable rate mortgages were 0.30 percent on average.

First-time jobless claims were higher last week with a reading of 216,000 new claims filed as compared to expectations of 210,000 new claims filed and the prior week’s reading of 214,000 new claims filed New jobless claims remained near historic lows despite last week’s increase in claims.

What’s Ahead

This week’s scheduled economic releases include readings from the National Association of Home Builders Housing Market Index and Commerce Department readings on housing starts and building permits issued. The National Association of Realtors® will release its report on sales of pre-owned homes. Weekly readings on mortgage rates and new jobless claims will also be released.

5 Strategies Millennials Can Use To Buy Homes

November 16, 2018 by Lisa Eagan

5 Strategies Millennials Can Use To Buy Homes Millennials face numerous challenges when buying their first homes. 55% of young adults between 25 and 34 years old don’t own homes as compared to 80% in 1967, according to data from the Census Bureau.

Buying a home is tough with the $1.4 trillion student loan debt, growing childcare expenses and rising rental costs. However, hope is not lost. Millennials can realize the quintessential dream of owning a home.

Millennials can employ several strategies to plan for home ownership without selling their kidneys. Here are five ways to do just that.

Develop A Realistic Budget

Now is a great time to examine your finances and create a budget for a house you can really afford. Lenders may be able to approve you for a larger loan amount than what you thought possible. Therefore, it’s imperative to be realistic when deciding on the amount of home mortgage payment you can afford comfortably per month.

Make Sacrifices

Not long ago, someone said (and probably regretted) Millennials can’t save enough to buy homes because they are spend extravagantly. Well, saving thousands of dollars for down payment isn’t easy, but it’s not impossible either. And there are many low to no down payment programs available if you check with your trusted mortgage professional first.

You may have to sacrifice and cut unnecessary expenditures such as buying new outfits and even getting a new car. Living minimally can help pad your personal savings to propel you into owning a house.

Consider The Suburbs

Although it’s vital to stay near family and a lively social location, consider purchasing a house in a suburban area, where houses are typically more affordable. Plus, if you have pets they will love the larger lots and yards giving them space to play.

You can choose a less populated state where you will probably have a higher chance of affording a home. Although this may not be ideal, if owning your own place tops your list, then location will not stand in the way.

Use State And Federal Programs

The Federal Housing Administration (FHA) gives home buyers the chance to purchase houses with a very low down payment. This lower amount is quite attainable if you save toward this goal. Some states also offer supplemental programs beyond the FHA program. Find out whether you can access extra grants and subsidies.

Get Your Hustle In Gear

Although most millennials struggle with unemployment, if you have one job, look for other ways to make extra dollars. You may consider driving for rideshare services, freelance gigs and running errands for people as a way to temporarily boost your earning potential.

Owning a place to call home is great. Like anyone else millennials can buy homes. Talk to a home finance expert and your trusted real estate agent for more information on how you can make your best investment.

5 Home Design Trends To Watch Out In 2019

November 15, 2018 by Lisa Eagan

Home design trends continue to change at supersonic speeds. With New Year right around the corner, the home design world is focusing on trends that will probably reign big in 2019.

5 Home Design Trends To Watch Out In 2019 So, as you make your annual resolutions or consider revamping your home, it’s worth knowing them. After all, we all adore coming back to a place that makes us happy and helps us disconnect from tough days at work.

It’s wise to be aware of temporary fads in design, but don’t be shy to try some new home designs and decor in 2019. In this post, we explore five trends to watch out for in 2019.

Nature Luxury

Blending outdoors with indoors continues to trend and is not stopping soon. Today, the idea enjoys a boost from state-of-the-art accessories made from natural elements to complete the appearance. Natural fibers, wood and rattan are getting indoors, helping to blur the lines.

Classic Terrazzo Comeback

Terrazzo, a hard stone with chips of granite, glass, marble and quartz reigns with its speckle signatures. Terrazzo was popular in the 80s but making a comeback in 2019. Because of its versatility, terrazzo is preferably used on countertops and not floors. This comeback will likely take away from marble’s more recent popularity.

Colored Kitchens

Though white remains a classic color for most kitchen designs, homeowners are injecting vibrant colors and shying away from bland hues. Rich colors, including wood tones and neutrals like mahogany, blues and grays are making their way into kitchens giving them a fresh, warm and unique feel.

Social media platforms like Instagram and Pinterest play key roles exposing homeowners to the endless possibilities and fun of rich colors, encouraging them to be risk takers when it comes to color.

Blue Hues

Blues are gaining popularity in interior dress ups. Most paint companies prefer shades of blue as their top choice in 2019. Blueprint is often seen as warmer than denim and softer than navy. Blue is perfect for reflecting the pool. The coloration is also popping up in home accessories like artwork, pillows and throws.

Florals

Though tropical palm prints remained popular this year, people aren’t tired of the look quite yet. In fact, eye-catching, oversized florals will probably dominate throughout 2019, with more complex interpretations expected.

Your trusted real estate professional is familiar with popular trends in your area. Be sure to let them know what tops your list!

How To Handle Common Homeowner Challenges

November 14, 2018 by Lisa Eagan

How To Handle Common Homeowner Challenges It takes hard work to achieve the American Dream of homeownership. Everyday people work to save for a down payment and build a good credit score. When you turn the key to your first home or dream home, the sweat equity feels well worth it.

But the hard work of buying a home continues long after hanging family photos and hooking up a big-screen TV. There are challenges that property owners are unprepared to handle. These are three of the more common ones you may want to be ready to manage.

Leaking Pipes

Plumbing does not last forever and at some point, it will begin to leak. For people who have wells on their property, copper pipes can wear thin faster. That’s because the pH of well water can tend to be on the more acidic side and corrode pipes quicker.

Many homeowners are ill prepared to deal with pipes that spring a leak. If a leak goes unchecked, the water can cause other damage or hazardous mold growth behind walls and under floorboards. While one solution is often having a plumber make an expensive emergency call, there are other simple solutions.

Take a piece of an old bicycle tire tube and fasten it tight over the leak using a pair of hosepipe screw clamps. These clamps wrap around the pipe and can be closed over the rubber and leak using a screwdriver. If you do not have these items handy, it may be in your best interest to spend less the $5 and get them sooner rather than later.

Moisture In The Bathroom

The single most destructive force to any home is not rodents or termite infestations. Water can do more damage than the average homeowner might imagine. A poorly ventilated bathroom can create one of the most hazardous problems.

When moisture seeps behind walls or under the floor, it can spur on dangerous mold growth. These health hazards often go undetected and sick family members may not know the root cause is hidden behind the walls.

Overly moist bathroom walls from hot showers are a telltale sign that you need improved ventilation. Start immediately by opening a window when showering and enlist the help of a professional to properly vent the bathroom. The difference could be thousands of dollars in ripping out walls and rebuilding, not to mention your health.

Power Outages

There are two types of power outages that homeowners would be wise to prepare for — short ones and long ones. If your power is interrupted for a few hours or half of a day, keep the refrigerator shut and enjoy the time without television noise. A few inexpensive battery-operated lanterns or candles will provide enough light.

But if you are hit by a long-term outage, there are things you can do ahead of time to be prepared. Many homeowners in areas that suffer annual severe weather incidents purchase generators. Small ones can be set outside and run electricity to important items. Even a modest generator can help a homeowner through a week-long outage.

If you don’t have a backup generator, the time is now to prepare. They will fly off the shelves when the lights go out.

The joy of homeownership is coupled with ongoing challenges. Planning ahead can save time, money and help keep your dream home in tip-top shape.

Your trusted real estate professionals has tons of tips for homeowners and will likely be able to make sound referrals for home improvement professionals if the need presents itself.

What’s Ahead For Mortgage Rates This Week – November 13th, 2018

November 13, 2018 by Lisa Eagan

What’s Ahead For Mortgage Rates This Week – November 13th, 2018 Last week’s scheduled economic news was slim last week. The Federal Open Market Committee of the Federal Reserve issued its post-meeting statement, weekly readings on average mortgage rates and first-time jobless claims were also issued.

FOMC: Fed Target Rate Unchanged, but Expected to Rise in December

The Federal Open Market Committee of the Federal Reserve announced that it did not raise the target federal funds rate but set the stage for raising the benchmark rate n coming months. The current range for the Fed rate us 2.00 percent to 2.00 to 2.25 percent. The Fed expects to increase rates three times in 2019 provided that strong economic conditions prevail.

FOMC members watch inflation, financial markets and domestic and global news to determine how or if to adjust the Federal Reserve’s target interest rates range.

Although FOMC releases projections based on current events and financial developments, changes to financial markets or global events could cause the Fed to hold off on raising interest rates.

Mortgage Rates, Hit Seven-Year High, New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates that pushed current mortgage rates to their highest levels in seven years. Rates for a 30-year fixed rate mortgages rose 11 basis points to an average of 4.94 percent; 15-year fixed rate mortgage rates averaged 4.33 percent, which was ten basis points higher than the prior week.

Rates for a 5/1 adjustable rate rose by 10 basis points to an average of 4.14 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell by 1000 new claims to 214,000 new claims filed. Analysts expected 210,000 new claims filed based on the prior week’s reading of 215,000 first-time jobless claims filed.

What‘s Ahead

Next week’s economic reports include readings on inflation, retail sales and weekly reports on mortgage rates and mortgage rates.

3 Critical Tips for Buying a Home in a Short Sale

November 9, 2018 by Lisa Eagan

3 Critical Tips for Buying a Home in a Short Sale You just found your perfect home, and you feel like everything is right including the price. But, what could be wrong with your ideal home? Maybe, it is being sold as a short sale, and that could present a major challenge if you want to become be the eventual homeowner.

Short sales are different from other conventional real estate transactions since the property in question is usually listed at a price that is much lower than the amount of the outstanding mortgage debt.

Unlike a regular sale, the homeowner must obtain permission from the lender before proceeding with the transaction. Whether you are a veteran property buyer or a first-time home buyer, closing a deal on a short sale can be a challenging and stressful experience. We compiled the top three tips for buying a home in a short sale.

Consult a Short Sale Expert

First, you should consider getting help from a short sale expert who will help you identify homes that are being offered as short sales, help you determine a reasonable purchase price and also advise you on what to include in your offer to make it attractive to the seller.

Before you go for a particular short sale expert, ask them how many buyers they have helped purchase homes on short sales and how long they have been in business.

Good Deals Take Patience

Secondly, remember to be patient when engaging in a short sale deal. There is a high likelihood that most buyers will get impatient after several weeks of waiting and walk away from the deal leaving you in a strong position to negotiate.

If you understand that the initial offer on any short sale can take a long time before the lender accepts or rejects it, you will be in a better position to get a good deal since there will be no stiff competition. However, you should keep in mind that the lender might reject your offer.

Get a Full Loan Approval Early

Lastly, make sure that you get approved for a loan and not just pre-approved. Go through the trouble of getting approved if you want to stand a good chance of landing your dream home through a short sale.

Keep in mind that there will be multiple bids on the property and most of the prospective buyers will be pre-approved. Since you want to get the home at the best possible price below the market prices, being fully approved will make your offer stand out with the lender since you no longer face the risk of your financing falling apart at the last minute.

Entering into a short sale transaction will require patience and diligence. One of your best partners will be your trusted real estate professional.

Tips For Selling Your Home In The Winter

November 7, 2018 by Lisa Eagan

Tips For Selling Your Home In The Winter Winter typically isn’t one of the busier home buying seasons – those seasons are reserved for spring and summer. But to think that you can’t sell your home at market value during the winter months is being naive. In fact, you can even use some of the characteristics that define the season to your advantage. For instance, because winter isn’t a hot selling season, there’s typically less inventory during this time of year. That said, if your home stands out in the listings, you have a better chance of getting on that coveted “short list” of buyers.

Here’s a look at some tips on how to do it:

Make Your Home Look Inviting

This is essential for selling your home at any period of the year, but it’s perhaps most important during the winter months. That’s because colder temperatures and shorter days have the tendency to make a property look a little dreary from the outside.

There are a few ways to enhance your home’s curb appeal during the winter months:

Exterior lights: Shorter days mean less daylight, so make sure your home is well-lit so that buyers can see all of its features in periods of low light.

Easy to navigate: Always ensure that your driveway and any walking paths are clear. This makes it easier for potential buyers to safely access the home and more closely observe the condition of the driveway, sidewalks, etc.

Decorate it appropriately: Don’t overdo it, but some seasonal decorations can add a nice touch.

Turn Up The Heat

Ideally, you want would-be buyers to walk in from the cold into a warm, cozy environment. So crank up the thermostat, make a fire in your home’s fireplaces (if applicable) and brighten any dark areas of the home. This helps create a comfortable interior environment as well as show off some of your home’s amenities.

Think Spring And Summer

As you know, your home is bound to look different during the summer months than it will during the winter. Hence, we’d encourage you to make sure that this is noted in your listings. Include exterior photos of your home during the warm weather months so would-be buyers can see the green grass, flowers in bloom and leaves on the trees.

Sometimes, envisioning how a home that is being shown in the winter will look at other times of the year can be difficult. Don’t waste the opportunity to include a few photos of your home at other times of the year.

Don’t be nervous about selling your home in the winter – just know how to showcase it to capture buyer interest. The buyers are out there in the winter, it’s just a matter of making your home stand out. Your trusted real estate agent is just the person to help you make sure your home is buyer-ready any time of the year!

5 Tips To Price Your Home To Sell For Top Dollar

November 6, 2018 by Lisa Eagan

5 Tips To Price Your Home To Sell For Top Dollar Many home sellers are confused about how to price their home to sell. It’s definitely challenging to try and find that sweet spot between pricing it low enough so it flies off the market without undercutting the home’s value. Emotions play into the decision, too. If the seller has a lot of sweat equity in the home, or the property is the only place the children have ever called home, owners may tend to place a higher value on the house.

Here’s how to correctly price a home to sell in any market.

Rely On Your Real Estate Agent

Your Realtor is an expert in all matters related to home buying and selling. They have a vested interest in selling your home within a reasonable time frame. As such, they provide a valuable, objective perspective that you should closely pay attention to in order to correctly price your home to sell.

Look At Comps In Your Neighborhood

One thing that your real estate agent does is analyze the comparable properties in your neighborhood. Remember, what a home sells for in a nearby city doesn’t impact how to price your home in a neighborhood far removed. Your prospective buyers will also compare your home’s price to others they could buy in the same neighborhood.

Consider Special Features

Don’t discount special features that your home has, such as built-in shelving units, out buildings, a home movie theater, etc. These give you an advantage in that you can safely set your price a little higher than comparable homes without those features. Be sure your real estate agent mentions them on your MLS listing so buyers understand the higher asking price.

Be Prepared To Make Price Adjustments

Remember that you might have to come down from your asking price, so keep that in mind when you and your real estate agent set that number. Don’t expect that you’ll get exactly what you’re asking for unless you’re in a high demand area. When you give yourself some margin, you gain negotiating power you can use to make a sale happen.

Consider Your Own Finances

Pricing your home to sell is only one factor to consider. The larger equation takes your entire financial picture into account. Figure out how much you owe, how much commission you’ll pay and any sales concessions, if any, you’d be willing to offer a prospective buyer. This due diligence ensures you’ll be satisfied with the outcome after all the money has changed hands.

Pricing your home to sell correctly is a critical part of making the transaction happen. Remember that your real estate agent is the best judge of the best price point, but you can always point out the reasons why you’d like it higher or lower.