Blog - Leagan Realty

Where Buyers Tend To Compromise When Buying A Home

June 1, 2022 by Lisa Eagan

If you are in the market for a home, it is important for you to think about what is most critical to your housing search. Unless you have an unlimited budget, you will probably have to compromise somewhere to make a competitive offer on a house you can afford. Every buyer is different, but there are a few common themes regarding where buyers tend to compromise when looking for a house.

The Condition Of The Home

One area where buyers tend to compromise is the condition of the house. Most buyers would prefer to purchase a new house that is move-in ready, but you may notice that it can be difficult to find a new house that is within your budget. If you are willing to purchase a house that is a bit older, you might be able to save money. Then, you can put this money towards home improvements.

The Size Of The Home

If you want to keep your housing search under a certain budget, you may need to compromise on the size of the house. Particularly in an overheated market, you might be able to scale back the home’s square footage to make a more competitive offer on a house. This is particularly true if you are looking for a house in a specific school district.

The Style Of The Home

You might have always dreamed of living in a mid-century colonial home, but it might not always be possible to find a house of this style that checks the other boxes. If you are willing to purchase a house that doesn’t quite match your style, you might be able to find a home that has the other characteristics you need.

Select The Right House

Everyone is different, and the right house for one person is not going to be the same as the right house for you. As you take a look at the houses available, think about what is most important to you. What do you need to have when you look for a home, and where are you willing to compromise? This can help you put yourself and your family in the best position possible to be successful during your housing search.

What’s Ahead For Mortgage Rates This Week – May 31, 2022

May 31, 2022 by Lisa Eagan

What's Ahead For Mortgage Rates This Week - May 31, 2021 Last week’s economic reporting included readings on new and pending home sales, minutes from the Federal Reserve’s recent Federal Open Market Committee meeting, and data on inflation. Weekly readings on mortgage rates and jobless claims were also released.

New and Pending Home Sales Fall

The annual pace of new home sales fell in April according to the Commerce Department. Year-over-year sales of new homes fell to a pace of 591,000 sales as compared to the March reading of 709,000 sales of new homes. Analysts expected a year-over-year pace of 750,000 new home sales in April. Rising home prices and mortgage rates challenged first-time and moderate-income home buyers, which caused falling sales.

Readings for pending home sales fell by -3.90 percent in April; analysts expected a reading of -2.00 percent based on the March reading of -1.60 percent. High home prices and recently rising mortgage rates cooled prospective buyers’ interest as concerns over rising inflation and economic conditions sidelined low and moderate-income home buyers. Lawrence Yun, the chief economist for the National Association of Realtors®, said that rising mortgage rates have increased monthly mortgage payments by as much as $500. A secondary effect of fewer home sales is fewer sales of goods and services associated with home ownership.

The Federal Reserve’s Federal Open Market Committee minutes documented the Fed’s decision to raise its key interest rate range to 0.75 to 1.00 percent. FOMC members expect ongoing rate range increases as the Fed continues its efforts to control inflation.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported lower average mortgage rates for the second consecutive week. Rates for 30year fixed rate mortgages fell by 15 basis points to 5.10 percent and rates for 15-year fixed rate mortgages fell by 12 basis points to 4.31 percent. The average rate for 5/1 adjustable rate mortgages rose by 12 basis points to 4.20 percent. Discount points averaged 0.90 percent for 30-year fixed-rate mortgages and 0.80 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgage rates averaged 0.30 percent.

New jobless claims fell to 210,000 claims filed from the prior week’s reading of 218,000 initial claims filed. Analysts expected 215,000 new jobless claims. Continuing jobless claims rose to 1.35 million ongoing claims filed as compared to 1.32 million ongoing claims filed.

The University of Michigan’s Consumer Sentiment Index fell to an index reading of 58.40 in May as compared to April’s reading of 59.10. Readings over 50 are considered positive.

What’s Ahead

This week’s scheduled economic reports include readings on home prices and construction spending along with labor sector readings on job growth and the national unemployment rate.

Thinking about Renovations?: 5 Considerations Before Hiring a Home Improvements Contractor

May 27, 2022 by Lisa Eagan

Thinking about Renovations?: 5 Considerations Before Hiring a Home Improvements Contractor With the pre-summer enthusiasm and the milder weather, springtime can be one of the best times of the year to take on home renovations that aren’t as easy in other months. If you happen to have some projects in mind and are considering taking the work on yourself, here are a few questions you’ll need to ask.

What Can You Take On?

If you have specific renovations in mind for the coming months, it’s very important to decide what you can reasonably take on and what you could pass on to a contractor. While some projects and fix-ups may be easier to complete on your own, some will require a greater degree of expertise.

What’s Your Skill Level?

You may have something that you think you can take on yourself, but if you’re new to renovating, it may be worth hiring a contractor who will be able to complete the job without incident. It can be a great learning experience to do many fix-ups on your own, but this can take a lot of time and energy too if you don’t know the details.

What’s Your Price Point?

Before deciding to hire a contractor, it’s important that you’ve thought about the potential costs associated with what you want to do. It can be pricy to hire someone if you have a lot that needs to be done, but someone else’s expertise can also end up being worth the money spent.

Do You Have A Timeline?

Many people renovate in the spring and summer months, and this means that your ideal contractor may not have a lot of time available. While this may end up working out for you, you’ll want to consider when you want it done so your expectations are not unreasonable.

Is A Second Opinion Helpful?

It’s great if you can handle all your home renovations on your own, but no one will be able to offer you the knowledgeable opinion that a contractor will. While a professional will undoubtedly be able to complete the work you’re requesting, they may also have helpful suggestions for you that may make for an even better home improvement.

Spring is an ideal season for home renovations, but before taking anything on you’ll want to carefully consider whether or not you’ll need to hire someone. If you’re renovating to put your home on the market, contact your local real estate professional for more information.

The Top Trends For The Backyard This Spring

May 26, 2022 by Lisa Eagan

The Top Trends For The Backyard This Spring With the weather beginning to warm up outside, a lot of people are looking forward to spending more time outdoors. If your grass is beginning to grow and turn green again, you might be thinking about hosting a party with your family members and friends. What are a few trends you should consider embracing this spring?

Container Gardens

A lot of people are looking for ways to introduce nature into their homes. Even though you can certainly put a few more flowers and plants inside, you might want to consider container gardens outside. You might be able to grow your own vegetables, and you could grow some herbs. If you like spicy food, consider planting a few hot peppers. Then, tend to the gardens, watch them grow, and enjoy the splash of color they bring to your yard.

Living Room Furnishings

If you want to develop stronger connections with your family members and friends, consider moving the living room outside. While you can certainly go with traditional outdoor wicker furniture, consider putting living room-like furnishings outside. This could include couches, coffee tables, and even a TV. Just make sure you take care of your furniture if you decide to deploy it outside. You might want to invest in a cover you can use to protect it from the rain.

An Outdoor Kitchen

Consider cooking more outdoors. There are plenty of ways you can create a kitchen-like atmosphere in your backyard. You might want to get a grill, a rolling bar cart, or even an extra sink. If you really want to go all-out, consider purchasing an oven or a stove you can have outside as well. This will encourage you and your family to use the backyard more often.

Get The Most Out Of Your Backyard This Spring

These are just a few of the top trends you may notice in backyards this spring. If you are looking forward to getting outside again, consider putting a few of these trends to use. Take a look at some of the sales you can use to save money, and consider who you will be hanging out with. That way, you can get the most out of your backyard during the warmer months.

3 DIY Kitchen Upgrades That Will Boost Your Home Selling Price With Just A Few Hours Work

May 25, 2022 by Lisa Eagan

3 DIY Kitchen Upgrades That Will Boost Your Home Selling Price With Just A Few Hours Work Homeowners who want to increase the appeal of their residence before putting it up for sale can, within a few hours and with a little elbow grease, perform some do-it-yourself (DIY) kitchen upgrades that are sure to pique the interest of would-be buyers.

Many people either have or are in the process of listing their home, so it makes sense to do as much as possible to attract the interest of prospective purchasers.

It need not cost a proverbial arm and a leg to boost the selling price of a home. Here are three DIY kitchen upgrades that will help homeowners gain a competitive advantage in the real estate market and get attractive offers for their residence.

On-The-Cheap Cabinet Upgrades

For a DIY upgrade project that won’t cost much money and won’t take much time, homeowners should consider revamping their cabinetry, as long as the cabinets are structurally sound. After cleaning them and, if necessary, sanding down any rough spots, homeowners can apply a coat or two of paint and, after the paint dries, install new knobs or handles to finish off the project.

The end result will be a totally transformed kitchen that likely won’t require more than a can of paint, sandpaper, some cleaner and some knobs or handles.

Upgrade Your Countertops

It’s amazing how much of a difference an upgraded countertop can make to the overall look of a kitchen. Homeowners who believe that a new countertop would definitely transform their kitchen have a number of options at their disposal such as buying a new one, tiling over the existing one or repainting the existing one.

Often the easiest of the three options is repainting, since this simply involves sanding the surface, priming it, applying the paint and then applying numerous coats of polyurethane to safeguard the finish.

Transform Your Kitchen Backsplash

While a nice-looking kitchen backsplash can be a plus for would-be home buyers, the fact of the matter is that an ugly backsplash will definitely turn off prospective purchasers.

A cheap and relatively quick way to give a backsplash a new lease on life is to use so-called tile decals that, because of the adhesive they contain, can be pasted over top of existing backsplash tiles. There many different options in terms of styles, colors and concepts, so homeowners will be able to find the perfect option to make their backsplash look as good as new.

Preparing to list a home and get acceptable offers involves ensuring that your home will stack up nicely compared to other homes up for sale in the area. As it turns out, doing some quick and relatively simple kitchen upgrades will help to attract prospective buyers. Tips for performing any of these DIY upgrades can be found either at neighborhood big-box stores or online.

For more information on the real estate market or to get more information on any related topics, call your trusted real estate professional today for a no-obligation consultation.

IRAs And Real Estate Investing

May 24, 2022 by Lisa Eagan

IRAs And Real Estate Investing If you want to diversify your investments, you might be thinking about purchasing real estate. Buying property is expensive, so where are you going to get the money from? You might be able to use your IRA to help you buy property. You probably hold stocks, mutual funds, and bonds in your IRA, but did you know that you could also hold non-traditional retirement assets in your IRA? This includes real estate. How can you use your IRA to buy real estate?

Have The Right IRA

First, you need to have the right Ira if you want to use it to purchase real estate. If you have your IRA with a brokerage firm, you will not be able to buy investment properties through your account. You need a self-directed IRA to purchase real estate. As the name suggests, you will direct the investments held in the account.

Your Self-Directed IRA Can Be A Traditional Or A Roth IRA

A self-directed IRA can be either a traditional IRA or a Roth IRA. If you are curious about which one is better for you, you should talk to a retirement professional. If you are self-employed, you can also set up a self-directed SEP-IRA, which may have higher contribution limits. This could make it easier for you to purchase property.

The Rules For Purchasing Real Estate Through Your IRA

There are several rules you need to follow if you want to use your IRA to purchase an investment property. First, the real estate in your IRA has to be owned purely for investment purposes. This means you cannot stay there on vacation when it is not occupied by a renter. Also, you cannot use the furniture you own in an IRA on a rental property, and all of the property expenses have to be paid by the IRA, not yourself. You also cannot use your self-directed IRA to purchase property from yourself or a family member.

Explore Real Estate Investment Opportunities

These are just a few of the most important points you should keep in mind regarding real estate investing through an IRA. This could be a way for you to diversify your investments, but make sure you are familiar with the rules.

Avoiding Home Buyer Remorse: 5 Tips for a Happier Homeowner

May 20, 2022 by Lisa Eagan

Avoiding Home Buyer Remorse: 5 Tips for a Happier Homeowner The rush of excitement that comes with finding the home you’ve been looking for is ideal, but just because it seems like the perfect place, it doesn’t mean there aren’t other factors to consider. Instead of getting hit with buyer’s remorse, here are some tips so that your home purchase doesn’t become something you’ll regret.

Forget About The Competition

If you’re contemplating a house and happen to be dragged into a bidding war, it’s important to take a step back and determine if it’s really the right home for you. It can be easy to get carried away and up your offer, but make sure you determine what the home is really worth to you.

Take A Second Look

If you’ve been to a lot of home viewings and have finally found a place you feel good about, it can be easy to overlook the minor details. Instead of trusting your memory, make sure you visit the home a couple of times before putting in an offer so you’ll be aware of any major flaws you might have missed the first time around.

Visit The Neighborhood

The instant appeal of a home that seems perfect for your family can be unexpected, but it’s worth considering the neighborhood you’re going to be living in to ensure it’s livable. A home is one thing, but local amenities and an area your family feels comfortable will come to be equally important.

Avoid A Fixer-Upper

The kind of home you can fix up might make for a fun project for the DIY person, but biting off more than you can chew in an effort to save can be a mistake. A few small renovations may not be a big issue, but a home that needs a lot of changes will likely end up being more of a burden once the deal is sealed.

Stick To Your Purchase Price

Many people get so overwhelmed when they find a unique place to settle that their price point flies out the window. However, instead of making allowances for a purchase price you can’t really swing, keep what’s affordable in mind and be sure you don’t veer too far above it.

It can be exciting to find the kind of home you’re looking for in a center you love, but it’s important to pay a price that’s affordable and get the home you really want. If you’re currently looking for real estate options in your area, contact your local real estate professional for more information.

Evaluating Neighborhoods: 4 Things to Consider Before Purchasing a Home

May 19, 2022 by Lisa Eagan

Evaluating Neighborhoods: 4 Things to Consider Before Purchasing a Home From finding the right agent to discovering the home you can truly feel comfortable in, there are a variety of things involved in the home buying process. However, it’s important not to get caught up in the home and ignore altogether the community you’ll be living in. If you’re planning a move to a new neighborhood, here are some things you should look into before putting in an offer.

Local Amenities

A peaceful, picturesque community is ideal, but if there are not a lot of resources nearby for your family, it’s possible that your new neighborhood may not be the best fit. Instead of having to get in the car and drive everywhere, ensure you research nearby community centers, green spaces and recreational spots so your family has somewhere to spend their weekends.

Research The Crime Rate

You can certainly get a good sense of the well being of a community just by looking at it, but be sure that you’re informed about exactly how safe the surrounding area is so your family will feel at ease in their new locale. While you can easily research the community and find information online, websites like Neighborhood Scout and Crime Report also make it simple to discover the less well-known details.

Transportation And Accessibility

A community you love is ideal, but if you work in the downtown core or an area far away, it will be important to determine the effect this will have on the length of your commute. In addition, you’ll want to be sure there are local transportation options like buses and shuttles that provide access all over the center in the event that it’s needed.

Learn About The Locals

There’s something to be said for the perfect home, but you’ll also need to feel a certain sense of comfort in the place you live so ensure you choose a place with nice neighbors and a community feel. This may seem hard to determine before buying a house, but try visiting the local community center or knocking on a few doors for a quick impression of what the locals are like.

It can be easy to throw everything else out the window as soon as you’ve found the perfect home, but it’s important that your home is situated in a neighborhood you’ll feel comfortable in. Contact your local real estate professional for more information.

Suffering in a ‘Low Inventory’ Real Estate Market? 3 Helpful Tips for Finding a Home to Buy

May 18, 2022 by Lisa Eagan

Suffering in a 'Low Inventory' Real Estate Market? 3 Helpful Tips for Finding a Home to Buy Many homebuyers struggle with finding a home that is within their price range, but many of those perusing the market also struggle when it comes to the search. If you’re currently in the real estate market and are having difficulty finding a good selection of homes, here are some ways to expand your search so you can find an opportunity you’re prepared to invest in.

Look Over The Old Listings

Whether you do it on your own or enlist the help of your real estate agent, it’s worth looking through the old listings to determine if any old opportunities are still available. There may be many formerly listed homes that have since sold, but homes that have lingered on the market may be open to offers; they may also be more aligned with the current market rates. Instead of taking the listings for granted, search for old opportunities that might turn up something good!

Consider Other Marketing Strategies

The market has changed in recent years, but the way that people choose to sell their home has changed along with it. While it’s still possible to see a sign on the front lawn or find a home on a real estate agent’s page, social media has become a very popular way to buy and sell. Aside from looking through the listings, consider searching Twitter or Facebook posts for homes that are for sale in your area. While you may not find your dream home, it’s entirely possible that an interesting detail or neighborhood that might have been missed will capture your attention.

Keep An Eye On Expensive Listings

Most homebuyers will immediately write off a listing that is out of their price range, but homes that are overpriced will often sit on the market. Fortunately, for many homeowners, this is something they can use to their advantage. Instead of avoiding pricey homes altogether, make sure to keep tabs on ones that are a little bit out of range but manage to pique your interest. It’s entirely possible that they won’t come down in price, but if they do it may be well worth the wait.

Many homebuyers struggle to find a home in a tight market, but by keeping an eye out on listings and considering all of the post-modern strategies for marketing, you may be able to find your dream home. If you’re currently searching for a home, contact your trusted real estate professional for more information.

Should Your First Home Be A Starter Home Or Forever Home?

May 17, 2022 by Lisa Eagan

Should Your First Home Be A Starter Home Or Forever Home? If you are looking for a house for the first time, you might be wondering whether you should purchase a starter home or a forever home. A starter home is a home in which you intend to live for a few years before you sell it and upgrade to a better home. A forever home is a home that you intend to be in for ten years or more. You can see yourself moving into the house and potentially spending your entire life there. How do you decide which type of home you should purchase?

A Starter Home

If your budget is relatively tight right now, you might be thinking about purchasing a starter home. A starter home is typically smaller than a forever home, which makes it more affordable. On the other hand, if you plan on having kids in the near future, you might want to purchase a larger home instead. Furthermore, you need to think about capital gains taxes when you sell your starter home. If you take the proceeds from your starter home and use them to purchase a larger house immediately, you might be able to avoid capital gains taxes.

A Forever Home

If you could see yourself spending the rest of your life in a certain place, you may want to consider buying a forever home. This is particularly helpful if you can secure a low-interest rate, as the interest rate might not change during the life of the mortgage. Interest rates could go up in the future, so you may want to lock in a low-interest rate for your forever home now. You will also need to think about your future cash flow to ensure you have the money to cover a larger mortgage. Do not forget to think about real estate taxes and home insurance as well.

Find The Right Home For Your Needs

These are a few key factors you should think about if you are looking for your first home. There are starter homes and forever homes available, but you need to think about which option is best for your needs.