Blog - Leagan Realty

The Trend of Downsizing and Tiny Homes

November 7, 2023 by Lisa Eagan Leave a Comment

As far as purchasing a home goes, “bigger is better” has often been the mantra. However, the trend of downsizing and tiny homes has gained significant traction in recent years, prompting many to rethink their approach to living spaces. This shift towards smaller, more efficient living has far-reaching implications for our lifestyles, our environmental footprint, and the way we view material possessions.

What Are Tiny Homes?

Tiny homes, typically defined as dwellings with a total living space of 400 square feet or less, have been on the rise. These pint-sized abodes are designed with the intention of providing all the necessary amenities for a comfortable life, while significantly reducing the overall space required for living. Tiny homes come in various forms, from custom-built structures on wheels to repurposed shipping containers or small cottages.

The Appeal of Tiny Living

The appeal of tiny living extends far beyond just aesthetics. Here are some of the key reasons people are drawn to downsizing and tiny homes:

Financial Freedom: Tiny homes are often significantly more affordable than traditional houses. With lower upfront costs and reduced monthly expenses, such as utility bills and property taxes, tiny homeowners can experience financial freedom.

Environmental Consciousness: The smaller size of tiny homes typically means a smaller carbon footprint. Many tiny homes are built with sustainable materials and incorporate energy-efficient features, making them an eco-friendly housing option.

Simplified Lifestyle: Downsizing forces you to declutter and prioritize what truly matters. A tiny home encourages a simplified and minimalistic lifestyle, focusing on experiences and relationships rather than material possessions.

Mobility: Many tiny homes are built on wheels, offering the opportunity for a nomadic lifestyle. This mobility appeals to those who desire the freedom to travel and change their surroundings regularly.

Community: The tiny house movement has led to the development of tiny house communities, where like-minded individuals can connect and live in close proximity, sharing resources and support.

Challenges of Tiny Living

While the trend of downsizing and tiny homes has many advantages, it’s not without its challenges:

Limited Space: The obvious challenge is the limited space, which may require creative solutions for storage and organization.

Zoning and Regulations: Many areas have zoning laws that restrict the placement of tiny homes, making it difficult for people to find suitable places to live.

Sacrifices: Downsizing often means giving up the comfort and space of a larger home. It can be a significant adjustment for those accustomed to a more spacious lifestyle.

Privacy: Living in close quarters with others can pose privacy challenges, and it’s important to have a harmonious living arrangement.

The Future of Tiny Homes

The trend of downsizing and tiny homes is likely to continue growing in popularity. As urbanization, environmental concerns, and financial constraints drive more people to seek alternative housing options, tiny homes provide a viable solution. Additionally, the ongoing development of tiny home communities and the increasing acceptance of these dwellings by local governments may help further mainstream this trend.

The trend of downsizing and tiny homes challenges the traditional notion of homeownership and encourages a more intentional, sustainable, and minimalist way of living. While there are challenges to consider, the benefits, including financial freedom, a reduced environmental footprint, and a simplified lifestyle, make tiny homes an appealing option for those looking to embrace a new way of living. As this trend continues to gain momentum, it will be interesting to see how it shapes the future of housing and communities around the world.

What’s Ahead For Mortgage Rates This Week – November 6, 2023

November 6, 2023 by Lisa Eagan Leave a Comment

The most important data of the quarter was released, signaling the direction for many markets and where economic policy may be headed. Jerome Powell as well as other members of the Federal Reserve spoke about the state of economic policy, informing many parties about their decisions to remain hawkish or dovish in their approach. Further rate hikes could tell a story that inflation is not yet under control and the Federal Reserve feels the need to continue these rate hikes, which will have a significant impact on the lending markets as a whole.

FOMC Rate Decision
While Fed Chair Jerome Powell emphasized uncertainty over whether the Fed has tightened enough to bring down inflation, skeptics still believe policymakers have finished hiking rates. Jerome Powell had several opportunities to make his intentions clear about further rate hikes but had passed on most of them. Analysts largely agree that their recent dovish approach is signaling the end of rate hikes.

Central bank’s policy rate remains in the 5.25%-5.50% range.
The Fed says the economy grew at a ‘strong’ pace in the third quarter.

Key point: Two rate decision meetings without a hike may signal a period in which the economy shows the reduction in inflation the FED has been seeking, and relief in interest rates for lending parties.

Primary Mortgage Market Survey Index

15-Yr FRM rates seeing a week-to-week increase by 00% with the current rate at 7.03%.
30-Yr FRM rates seeing a week-to-week decrease by -0.03% with the current rate at 76%

MND Rate Index

30-Yr FHA rates increased week to week seeing a -0.61% decrease for this week. Current rates at 71%
30-Yr VA rates increased week to week seeing a -0.63% decrease for this week. Current rates at 70%

Nonfarm Payrolls
Nonfarm Payrolls measure the change in the number of people employed during the previous month, excluding the farming industry.

Nonfarm payrolls increased by 150,000 for the month, against the consensus forecast for a rise of 170,000. That was a sharp decline from the gain of 297,000 in September.

Job Claims
The weekly jobless claims report from the Labor Department on Thursday showed unemployment rolls rising to a six-month high.

Initial Claims have increased by 217,000 compared to the expected claims of 214,000. The prior week was 211,000.

ISM Manufacturing Data
ISM Manufacturing Data was released this week, much of it impacting many sectors including manufacturing, home building, and commercial building. The Institute for Supply Management’s manufacturing survey rose to 49.0% last month from 47.8% in August. It was the third straight increase, and the index matched a 10-month high.

Production barometer increased 2.5 points to 52.5% and was positive for the second month in a row.
The prices index, a measure of inflation, fell 4.6 points to a fairly low 43.8%. Higher oil prices in the future may impact this statistic.
The index of new orders rose 2.4 points to 49.2%. So far the auto industry strike has had little impact.

What’s Ahead
We’ll have a relatively light week after the FOMC rate decision meetings and manufacturing release, with the only notable economic reports being Consumer Credit and Wholesale Inventories.

Maximize Your Backyard’s Privacy With These Unique Ideas

November 3, 2023 by Lisa Eagan Leave a Comment

One of the most effective ways to increase privacy in your backyard is to plant trees and shrubs. Choose fast-growing evergreen trees and shrubs that will provide year-round coverage. You can also plant a mix of tall and short plants to create layers of privacy. Below are some additional ways to create more privacy.

Install a Privacy Fence: A privacy fence is a classic way to create privacy in your backyard. You can choose from a variety of materials like wood, vinyl, or metal. You can also add a lattice or trellis to the top of the fence for extra privacy.

Create a Living Wall: A living wall is a wall covered in plants. This can be a great way to create privacy in your backyard while also adding some greenery. You can create a living wall using a variety of plants like vines, herbs, or succulents.

Use Outdoor Curtains: Outdoor curtains are a great way to create privacy on a patio or deck. You can install curtains on a rod or wire and close them for privacy when needed. Outdoor curtains are also great for adding some style and color to your outdoor space.

Add a Water Feature: A water feature like a fountain or pond can create a soothing ambiance in your backyard while also providing privacy. The sound of running water can help drown out noise from neighbors or nearby roads.

Use Decorative Screens: Decorative screens are a great way to create privacy in your backyard while also adding some style. You can choose from a variety of materials like metal or wood and use them to create a focal point in your outdoor space.

Build a Pergola: A pergola is a great way to create privacy while also providing some shade. You can use a pergola to create a covered seating area or outdoor dining space. You can also add curtains or plants to the sides of the pergola for extra privacy.

Hang Outdoor Art: Hanging outdoor art like canvas paintings or metal sculptures can create a focal point in your backyard while also providing some privacy. You can also use outdoor art to add some color and style to your outdoor space.

When installing raised beds or privacy fences, it’s important to check local zoning laws and regulations to ensure that you are complying with any height or setback requirements. Additionally, it’s always a good idea to communicate with your neighbors and ensure that they are aware of your plans and any potential impacts on their property.

How to Go From Renting to Owning a Home

November 2, 2023 by Lisa Eagan Leave a Comment

Going from renting to owning a home can be a significant financial and personal milestone, but it requires careful planning and preparation. Here are some steps to take to make the transition from renting to owning:

Determine your budget: Calculate your current expenses and income to determine how much you can afford to spend on a home. Consider factors such as down payment, closing costs, monthly mortgage payments, property taxes, and homeowner’s insurance.

Save for a down payment: A down payment is typically required when purchasing a home, and the larger the down payment, the lower your monthly mortgage payments will be. Aim to save at least 20% of the home’s purchase price to avoid paying private mortgage insurance (PMI).

Check your credit score: A good credit score can help you secure a better mortgage rate, so it’s important to check your credit score and address any issues before applying for a mortgage.

Get pre-approved for a mortgage: Before starting your home search, get pre-approved for a mortgage. This will give you an idea of how much you can afford to spend on a home and will also make you a more attractive buyer to sellers.

Find a real estate agent: A good real estate agent can help you navigate the home-buying process, from finding the right property to negotiating the best deal.

Start house hunting: Once you have your budget and pre-approval in hand, start searching for your dream home. Consider factors such as location, size, amenities, and resale value.

Make an offer and close the deal: Once you’ve found the right property, make an offer, negotiate the terms of the sale, and complete the closing process.

Ultimately, the rental market is driven by supply and demand, and rent prices will fluctuate based on a variety of factors such as location, amenities, and competition. It’s always a good idea for renters to do their research and compare prices before signing a lease. If you think you are ready, remember that buying a home is a significant financial and personal decision, so it’s important to do your research and seek professional advice along the way.

Home for the Holidays: Maximizing Your Space for Guests

November 1, 2023 by Lisa Eagan Leave a Comment

As the holiday season approaches, many of us look forward to spending quality time with family and friends. It’s a time for creating cherished memories, sharing delicious meals, and catching up with loved ones. If you’re hosting guests in your home this holiday season, it’s essential to make them feel comfortable and welcome. Here are some tips to help you maximize your space and ensure a warm and inviting atmosphere for your holiday guests.

Declutter and Organize: The first step in preparing your home for holiday guests is to declutter and organize your space. Clear away any unnecessary items to make room for your guests. Focus on common areas like the living room, dining room, and guest bedrooms.

Create a Cozy Guest Space: If you have a spare room or guest bedroom, ensure it’s ready for your guests. Make the bed with fresh linens, add extra pillows and blankets, and clear some closet space for their belongings. A bedside table with a reading lamp and a few magazines or books can make the space even more inviting.

Utilize Sleeper Sofas and Futons: If you don’t have a dedicated guest bedroom, consider investing in a comfortable sleeper sofa or futon for the living room. These multipurpose pieces of furniture can provide a cozy sleeping space for your guests while still serving as seating during the day.

Foldable Furniture: Opt for foldable or collapsible furniture in small spaces. These can be stored away when not in use, providing extra room for guests to move around. Folding chairs and tables can be a lifesaver for large holiday gatherings.

Stock Up on Essentials: Stock up on essential items your guests might need, such as toiletries, extra towels, and blankets. Consider creating a small welcome basket with these items, along with a note welcoming your guests.

Offer Space for Privacy: While you want to create a welcoming environment, it’s also important to respect your guests’ need for privacy. Provide a space where they can retreat if they need some alone time or a quiet place to relax.

Communication: Last but not least, communicate with your guests about their needs and preferences. Knowing if someone has dietary restrictions or specific room requirements will help you better prepare for their stay

By following these tips, you can maximize your space and create a welcoming environment for your holiday guests. The most important thing is to foster a sense of togetherness and ensure that your guests feel valued and cherished during their stay in your home. Wishing you a joyful and memorable holiday season!

Halloween Safety: Protecting Your Family and Home

October 31, 2023 by Lisa Eagan Leave a Comment

Halloween is a thrilling time of the year, filled with spooky costumes, delicious treats, and endless fun. It is also important to remember that safety should always come first. Whether you’re a parent, homeowner, or someone simply looking out for your community, keeping your family and home safe on Halloween is a top priority. Here are some valuable tips to ensure that the holiday remains full of treats and without any tricks.

Home Security Matters: Securing your home is vital during Halloween. With increased foot traffic around your property, consider the following:

Ensure all doors and windows are securely locked.
Consider motion-activated lighting to deter unwanted visitors.
Test your home security system to make sure it’s functioning correctly.

Safe Decorations: Get into the spirit of Halloween by decorating your home, but do so safely:

Use flameless LED candles instead of real ones for Jack-o’-lanterns.
Place decorations in safe areas to avoid tripping hazards.

Costume Safety: If you or your family members are dressing up for the occasion, don’t forget about costume safety:

Choose flame-resistant costumes and avoid those that drag on the ground.
Make sure costumes and masks don’t obstruct vision or breathing.

Trick-or-Treating Safety: If you have little ones excited about trick-or-treating, ensure their safety with these guidelines:

Accompany young children when they go trick-or-treating.
Teach your kids to stick to sidewalks and cross streets at designated crosswalks.
Bring flashlights or glow sticks to increase visibility.
Inspect all candy before it’s consumed. Discard any unwrapped or suspicious items.

Driving Safely: If you’re driving on Halloween, remember to be extra cautious:

Drive slowly and carefully in residential areas, particularly where children are trick-or-treating.
Avoid distractions while driving and keep a keen eye out for pedestrians.

Emergency Plan: Safety doesn’t always mean preventing accidents; it also means knowing how to respond when they occur. Make sure your household is prepared:

Teach everyone in your family how to call 911 in case of an emergency.
Keep a first aid kit readily available for minor injuries.

Neighbor Awareness: Maintain communication with your neighbors. If you’re going out or notice any suspicious activity, it’s good to know you can rely on your community for support.
Home Alone: If you have older children staying home alone, make sure they’re informed about safety measures like not opening the door to strangers.
Halloween Decorations Removal: After Halloween, remove your decorations promptly. This not only prevents vandalism but also makes your home less appealing to potential pranksters.
Allergies: For those distributing treats, consider offering non-food items or allergy-friendly options for children with food allergies to keep everyone safe and included.

Remember, Halloween is all about fun and celebration. By taking these precautions, you can enjoy the festivities while keeping your family and home safe. So, dress up, carve those pumpkins, and let the spooky fun begin, knowing you’ve taken the right steps to ensure a happy and safe Halloween for everyone.

What’s Ahead For Mortgage Rates This Week – October 30, 2023

October 30, 2023 by Lisa Eagan Leave a Comment

This week’s most significant data offered preliminary numbers for manufacturing and services PMI (Purchasing Managers Index). Both can serve as a forward indicator for the economy while providing insight into the current state of the cost of living for the service industry. While manufacturing met an expected rise for the end of October, services saw a contraction, falling to 46.6 from 49.3. Readings below 50.0 can be a sign of a downturn for the economy, particularly given the time of the year.

Mortgage Applications & Rates Indices
MBA Mortgage Applications Index saw a reduction of -1.0% in applications for the week, with rates once again increasing again week over week.

Primary Mortgage Market Survey Index

15-Yr FRM rates are seeing a week-to-week increase by 0.11% with the current rate at 03%.
30-Yr FRM rates are seeing a week-to-week increase by 0.16% with the current rate at 79%

MND Rate Index

30-Yr FHA rates increased week to week with a -0.08% decrease for this week. Current rates at 32%
30-Yr VA rates increased week to week with a -0.11% decrease for this week. Current rates at 33%

Personal Income & Spending

Personal income increased $77.8 billion (0.3 percent at a monthly rate) in September, according to estimates released today by the Bureau of Economic Analysis (table 2 and table 3). Disposable personal income (DPI), which is personal income less personal current taxes, increased $56.1 billion (0.3 percent), and personal consumption expenditures (PCE) increased $138.7 billion (0.7 percent).

The PCE price index increased 0.4 percent.
Excluding food and energy, the PCE price index increased 0.3 percent.

Key point: Personal income increased in September and spending accordingly rose, moving into October. This increase in income and spending is expected moving into the Holiday season. This is a strong sign for the Advanced GDP numbers for the remainder of the year.

Job Claims
Those who applied for unemployment benefits last week fell to a nine-month low of 188,000, subverting expectations that layoffs would rise as the U.S. interest rates continued to increase.
Initial Claims were 210,000 compared to the expected claims of 210,000. The prior week was at 211,000.

What’s Ahead
This week’s scheduled economic reports include ISM manufacturing data, S&P U.S. Manufacturing PMI, and Job Openings. The stronger data points of U.S. non-farm payrolls are coming at the end of the week on Friday.

Transforming Your Space One Project at a Time

October 27, 2023 by Lisa Eagan Leave a Comment

When it comes to home improvements, many homeowners are opting for the do-it-yourself (DIY) approach. DIY home improvements not only allow you to save money but also provide a sense of accomplishment and personalization. Whether you’re fixing a leaky faucet or renovating an entire room, taking on home improvement projects can have numerous benefits that extend beyond physical transformation.

Cost Savings:

One of the most compelling reasons to tackle DIY home improvements is the potential for significant cost savings. Hiring professionals can be expensive, especially for minor repairs or aesthetic upgrades. By doing the work yourself, you can avoid labor costs and potentially save hundreds or even thousands of dollars.

Personal Satisfaction and Empowerment:

Undertaking a DIY project can be an incredibly fulfilling experience. From planning and execution to the final reveal, you’ll witness the transformation firsthand and take pride in your accomplishments. The sense of empowerment that comes with successfully completing a DIY project can boost your confidence and encourage you to take on even more challenging tasks.

Learning and Skill Development:

Engaging in DIY home improvements provides an opportunity to learn new skills and expand your knowledge base. Each project offers a chance to develop your problem-solving abilities, increase your understanding of various materials and tools, and enhance your craftsmanship. The skills you acquire through DIY projects can be valuable not only for future home improvements but also in other aspects of your life.

Flexibility and Control:

One of the greatest advantages of DIY home improvements is the flexibility and control they afford you. You can work on your own schedule, adjusting as needed. DIY projects also allow you to control the quality of materials used, ensuring that you choose options that align with your budget, preferences, and desired outcome.

Embarking on DIY home improvement projects brings numerous benefits that extend far beyond the physical changes to your living space. From saving money to personal satisfaction, skill development to flexibility, and bonding with loved ones, there are countless advantages to taking a hands-on approach. By investing time, effort, and a little creativity, you can transform your home while simultaneously gaining valuable experience and enjoying the journey along the way. So, grab your toolbox, put on your work gloves, and unleash your inner DIY enthusiast—your dream home awaits!

Important Tips When Making a Down Payment for a Home

October 26, 2023 by Lisa Eagan Leave a Comment

When it comes to purchasing a home, one of the most significant financial decisions you’ll make is how much to put down as a down payment. Your down payment not only affects the amount you need to borrow but also plays a vital role in determining your mortgage interest rate and overall financial stability. Here are crucial tips to keep in mind when making a down payment for a home:

Determine Your Budget and Financial Goals:

Before you start setting aside money for a down payment, you must understand your budget and financial goals. Assess your current financial situation, including your income, expenses, and existing debt. Consider factors such as your credit score, job stability, and long-term financial objectives.

Make sure your down payment doesn’t deplete your savings entirely, leaving you vulnerable to unexpected expenses or emergencies. Typically, a down payment of 20% is recommended, as it can help you avoid private mortgage insurance (PMI) and secure a more favorable mortgage rate. However, if you can’t afford a 20% down payment, don’t worry – there are other options available, such as FHA loans or VA loans, which require smaller down payments.

Research Mortgage Options:

When deciding on a down payment amount, it’s crucial to explore the various mortgage options available. Different types of mortgages have different down payment requirements. Here are a few examples:

Conventional Mortgage
FHA Loan
Non-QM Loan
VA Loan
USDA Loan

Research these options and discuss them with a mortgage professional to find the best fit for your financial situation and homeownership goals.

Plan for Closing Costs:

When budgeting for your down payment, don’t forget about closing costs. These are the additional expenses associated with finalizing the purchase of your home, such as appraisal fees, title insurance, and legal fees. On average, closing costs can range from 2% to 5% of the home’s purchase price.

To avoid any last-minute financial stress, it’s wise to save some extra money specifically for closing costs. You can also negotiate with the seller to cover a portion of these costs as part of your purchase agreement.

Making a down payment for a home is a significant financial decision that requires careful consideration and planning. By determining your budget, researching mortgage options, and accounting for closing costs, you can navigate the homebuying process with confidence and secure the home of your dreams while maintaining your financial stability. Remember, homeownership is a long-term commitment, and making an informed down payment is a critical step in building a secure and comfortable future for you and your family.

Pros, Cons, and Considerations When Selling a House “As-Is”

October 25, 2023 by Lisa Eagan Leave a Comment

When it comes to selling a house, homeowners have different options available to them. One approach that some sellers consider is selling their house “as-is.” This means selling the property in its current condition without making any repairs or renovations.

Pros of Selling a House “As-Is”

Convenience: One of the primary advantages of selling a house as-is is the convenience it offers. By selling the property in its current condition, you can avoid the time, effort, and cost associated with repairs and renovations.

Cost Savings: Selling a house as-is can potentially save you money. When you sell a property in need of repairs, you can avoid the expense of hiring contractors or professionals to fix issues.

Faster Sale: Properties listed as-is often attract buyers who are specifically looking for fixer-uppers or investment opportunities. Consequently, selling as-is can expedite the selling process and lead to a quicker sale compared to selling a house that needs repairs.

Cons of Selling a House “As-Is”

Lower Sale Price: While selling a house as-is can speed up the selling process, it often comes at the expense of a lower sale price. Buyers may discount their offers to account for the repairs they’ll need to undertake after purchasing the property.

Limited Buyer Pool: Selling a house as-is typically appeals to a narrower pool of buyers. Many potential buyers may prefer move-in-ready homes, which means you might have fewer interested parties.

Disclosure Obligations: Selling a house as-is doesn’t absolve you of disclosing known defects or issues with the property. Failing to disclose material defects can lead to legal complications and potential lawsuits.

Considerations for Selling a House “As-Is”

Evaluate the Property’s Condition: Assess the extent of repairs needed and the overall condition of the house. Determine if selling as-is is a viable option or if minor repairs could help attract a wider range of buyers and potentially increase the sale price.

Consult with Real Estate Professionals: Engage with experienced real estate agents or property consultants who can provide insight into local market conditions, potential buyers, and pricing strategies. Their expertise can help you make an informed decision about selling your house as-is.

Weigh Financial Implications: Consider the financial implications of selling as-is versus investing in repairs. Calculate potential repair costs, estimated sale price, and the impact on your net proceeds.

Selling a house as-is can be a viable option for homeowners looking for convenience and cost savings. However, it’s crucial to carefully consider the potential drawbacks, such as a lower sale price and limited buyer pool. Assessing the property’s condition, seeking professional advice, and evaluating the financial implications are essential steps in deciding whether selling a house as-is is the right choice for you.