{"id":53,"date":"2021-01-09T22:39:14","date_gmt":"2021-01-09T22:39:14","guid":{"rendered":"http:\/\/tomweeks.net\/wordpress1\/?p=53"},"modified":"2021-02-09T23:00:22","modified_gmt":"2021-02-09T23:00:22","slug":"new-year-new-home-set-homeownership-goals-whether-youre-buying-selling-or-staying-put","status":"publish","type":"post","link":"http:\/\/tomweeks.net\/wordpress1\/2021\/01\/09\/new-year-new-home-set-homeownership-goals-whether-youre-buying-selling-or-staying-put\/","title":{"rendered":"New Year, New Home? Set Homeownership Goals Whether You\u2019re Buying, Selling, or Staying Put"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

The start of a new year always compels people\nto take a fresh look at their goals, from health and career to relationships\nand finance. But with historically low mortgage rates, increased home sales and\nprice growth, and a tight housing inventory, the time is right to also make\nsome homeownership resolutions for 2021.<\/p>\n\n\n\n

Home buyers, is this the year you work to\nimprove your credit score, pay down some debt, or save for a down payment? <\/p>\n\n\n\n

Home sellers, we\u2019ve laid out plans for you to\nget top dollar for your property, including timing your home sale, making your\nproperty stand out from the crowd, and investing in your extra living space. <\/p>\n\n\n\n

And even if you\u2019re staying put for awhile,\nhomeowners, you can resolve to improve your status quo by evaluating your home\nbudget, finalizing your home maintenance schedule, or maybe investing in a\nsecond property.<\/p>\n\n\n\n

So no matter your homeownership status, we\u2019ve\ngot some ideas and advice for you to make this year your best one yet. Read on\nto learn more.<\/p>\n\n\n\n

HOME\nBUYERS<\/p>\n\n\n\n

Resolution\n#1: Qualify for a better mortgage with a higher credit score<\/strong>.<\/p>\n\n\n\n

Your credit report highlights your current\ndebt, bill-paying history, and other key financial information. Importantly for\nyour home-buying journey, it is also used by lenders and companies to calculate\nyour credit score, which partly determines if you are qualified to obtain a\nmortgage. Therefore, before you start house-hunting, make sure your finances\nare in the best possible shape by checking your credit report from Equifax,\nExperian, and TransUnion (via AnnualCreditReport.com<\/a>). You can also obtain\nyour credit score for free from some banks and credit card companies.<\/p>\n\n\n\n

Your credit score will be a number ranging\nfrom 300-850.1<\/sup> Generally speaking, a credit score of 740 or higher\nis considered very good to excellent.2<\/sup> If your FICO score drops\nbelow 740, you might need to work at boosting your score for a few months\nbefore you begin house-hunting. Ways to do this are to pay your bills on time\nevery month, keep your credit card balances low, and avoid applying for new\ncredit.<\/p>\n\n\n\n

Resolution\n#2: Improve your credit health by paying down debt<\/strong>. <\/p>\n\n\n\n

Do you have student loans, credit card debt,\nor car payments tying up your income each month? That debt is hurting your\n\u201cbuying power,\u201d or the amount of home you can afford. Not only is it money that\nyou can’t spend on your new home, but your debt-to-income ratio also affects\nyour credit score, which we discussed above. The less debt you have, the higher\nyour FICO score and the better mortgage you can obtain.<\/p>\n\n\n\n

If you can, pay off some debt in its entirety\u2014<\/strong>like a low balance on a credit card.\nThen apply that “extra” money you previously paid on that credit card\nto pay off bigger debt, like a car loan. Even if you can\u2019t pay off all (or any)\nof your debt in full, reducing the balances of each account will help you\nqualify for the best possible mortgage terms.<\/p>\n\n\n\n

Resolution\n#3: Create a financial safety net before applying for a mortgage<\/strong>. <\/p>\n\n\n\n

Don\u2019t forget that buying a home requires some\ncash as well. A down payment is typically 7% of a home\u2019s purchase price, and\nclosing costs currently average $3,700.3,4<\/sup> You\u2019ll also need money\nfor moving expenses and any initial maintenance tasks that might pop up. And as\nthe pandemic taught us, you never know when an unforeseen event might cause a\njob loss, drop in income, or health scare, so having some liquid savings will\nensure that you can still pay your mortgage if a crisis occurs.<\/p>\n\n\n\n

Dedicate some effort to building up your\nreserves. Cut down on unnecessary expenses, and consider having a portion of\neach paycheck automatically deposited into your savings account to avoid the\ntemptation to spend it.<\/p>\n\n\n\n

HOME\nSELLERS<\/p>\n\n\n\n

Resolution\n#4: Decide on the right time to sell your home<\/strong>.<\/p>\n\n\n\n

If you\u2019re looking to maximize profit on the\nsale of your home, selling earlier in the year makes sense. Listing prices\nhistorically increase early in the year, peak in May, plateau through June, and\ndecrease for the remainder of the year.5<\/sup> And, according to the\nNational Association of Realtors, \u201c[w]ith both mortgage rates and the number of\nhomes available for sale expected to remain relatively low, home prices are\nlikely to continue to increase. [In] mid-January, home prices typically begin a\nquick ramp-up in a normal year.\u201d5<\/sup> <\/p>\n\n\n\n

But sales price isn\u2019t the only thing to\nconsider. You might not be ready to sell your home yet because you don’t want\nto uproot your kids during the school year or because you need to tackle some\nminor upgrades before placing your home on the market. <\/p>\n\n\n\n

This means that there is no one month or\nseason that is the perfect time to sell your home. Instead, the right timeline\nfor you takes into account factors such as when you\u2019ll earn the highest profit,\npersonal convenience, and whether your home is even ready to put on the market.\nA trusted real estate professional can talk you through your specific needs to\nclarify when to sell your home. <\/p>\n\n\n\n

Resolution\n#5: Boost your home\u2019s resale value by making your property shine<\/strong>.<\/p>\n\n\n\n

Housing inventory is at historic lows across\nthe country, and that means the market is fiercely competitive.6<\/sup>\nSelling your home in 2021 has the potential to net you a huge return right now,\nand you can maximize that amount with some simple fixes to make sure your\nproperty outshines your neighbors’ for sale down the street. <\/p>\n\n\n\n

In your home, you might need to tackle a minor\nremodeling project, such as upgrading the flooring or adding a fresh coat of\npaint. According to the National Association of Realtors\u2019 2019 Remodeling\nImpact Report, simply refinishing existing hardwood floors recoups 100% of the\ncost at resale, and completely replacing it with new wood flooring recovers 106%\nof costs.7<\/sup>
\n
\nOutside, you might consider improving your curb appeal by removing a dead bush,\ntrimming a tree that blocks the front window, or power-washing your moldy\ndriveway and sidewalks. In fact, real estate agents say cleaning the exterior\nof your house can add $10,000 to $15,000 to a home\u2019s sale price.8<\/sup>\nAnd according to a Virginia Tech study, improving a home\u2019s landscaping may\nincrease its value by 10 to 12%.9<\/sup> <\/p>\n\n\n\n

A good agent should provide custom-tailored suggestions to ensure your\nproperty pops inside and out. Ask us about our local insider secrets that will\nmake your home stand out from others on the market.<\/em><\/p>\n\n\n\n

Resolution\n#6: Invest in your \u201cextra\u201d living space to meet current buyers\u2019 needs<\/strong>. <\/p>\n\n\n\n

Due to COVID-19, more people are staying at home\nto work, go to school, exercise, and stay entertained. And these lifestyle\nchanges are showing up in home buyer preferences. For example, according to one\nstudy, buyers are looking more and more for homes with formal, outfitted home\noffices, private outdoor spaces, and updated kitchen appliances.10<\/sup>
\n
\n<\/p>\n\n\n\n

So if you\u2019ve got an underutilized room,\nconsider turning it into an office, home gym, schoolroom, or multi-purpose room\nto meet current home buyer needs and attract better offers on your home. Got\nsome underwhelming space outside? You could turn it into an outdoor\nentertainment area by adding a firepit, upgrading the patio furniture, or\ninstalling a grilling area. Be sure to consult with a local real estate\nprofessional before investing in a renovation, however, as each market\u2019s buyers\nhave different tastes.<\/p>\n\n\n\n

HOMEOWNERS<\/p>\n\n\n\n

Resolution\n#7: Evaluate your household budget to reflect financial changes.<\/strong><\/p>\n\n\n\n

After this past year, in particular, your\nfinancial picture may have changed. Maybe you were furloughed, had your hours\nreduced, or got a new job further from home. Perhaps you\u2019ve kept the same job,\nbut you\u2019re now working remotely. A work-from-home arrangement could mean less\nmoney spent on gas, tolls, a professional wardrobe, and dining out for lunch. <\/p>\n\n\n\n

But this could also mean new (or increased)\nexpenses now that you\u2019re working at home, such as new tech-related purchases,\nfaster Wi-Fi, and higher energy bills. January marks the perfect opportunity to\nupdate your income and expenses and review last year\u2019s spending habits,\ntweaking as needed for 2021.<\/p>\n\n\n\n

For more specific ideas, contact us for our free report “20 Ways\nto Save Money and Stretch Your Household Budget.”<\/em><\/p>\n\n\n\n

Resolution\n#8: Save money now (and earn more later) with a home maintenance plan.<\/strong> <\/p>\n\n\n\n

Having a schedule of regular home maintenance\nprojects to tackle will save you money now and in the long-term. You\u2019ll avoid\nsome surprise \u201cemergency fixes,\u201d and when you\u2019re ready to eventually sell your\nhome, you\u2019ll get higher offers from buyers who aren\u2019t put off by overdue\nrepairs.<\/p>\n\n\n\n

Even if nothing necessarily needs fixing right\nnow, you can lower your energy costs by maintaining and upgrading your\nhome.  According to the U.S. Department\nof Energy, simple fixes add up: replace five most frequently used bulbs with\nENERGY STAR ones to save $75\/year; repair leaky faucets to save $35\/year;\nreplace older toilets with low-flow models to save $100\/year; and seal air\nleaks to save $83-$166\/year.11<\/sup><\/p>\n\n\n\n

For a breakdown of home maintenance projects to tackle throughout the\nyear, contact us for our free report \u201cHouse Care Calendar: A Seasonal Guide to\nMaintaining Your Home.\u201d<\/em><\/p>\n\n\n\n

Resolution\n#9: Invest in real estate for a better standard of living.<\/strong> <\/p>\n\n\n\n

Even if you don\u2019t plan on leaving your current\nresidence, real estate is a great way to improve your quality of life in 2021. <\/p>\n\n\n\n

Have cabin fever from the long quarantine? A\nvacation home in a getaway location you love lets you safely spread your wings.\nAnd if you have been looking for a second stream of income, an investment\nproperty might be your answer. Just be sure to consult with a real estate\nprofessional to get a realistic sense of a property\u2019s true income potential.<\/p>\n\n\n\n

Want more information on how a second property fits into your 2021\nplans? Request our free report, “Move Up vs Second Home: Which One Is\nRight For You?”<\/em><\/p>\n\n\n\n

LET US\nHELP YOU WITH YOUR 2021 GOALS<\/strong><\/p>\n\n\n\n

Without a plan and a support system, 55% of\nAmericans will break their new year\u2019s resolutions.12<\/sup> Whether you\u2019re\nlooking to buy, sell, or stay put in your home, it helps to connect with a\ntrusted real estate agent to keep you motivated and on track.<\/p>\n\n\n\n

As local market experts, we have the\nknowledge, experience, and networks to help you achieve your homeownership\ngoals, whatever they may be. Reach out to us today for a free consultation and\ncommit to a happy and prosperous new year.<\/p>\n\n\n\n

Sources:<\/p>\n\n\n\n

  1. USA.gov – <\/a>
    \n    https:\/\/www.usa.gov\/credit-report<\/a><\/li>
  2. Equifax –
    \n    https:\/\/www.equifax.com\/personal\/education\/credit\/score\/what-is-a-good-credit-score\/<\/a><\/li>
  3. NerdWallet –
    \n    https:\/\/www.nerdwallet.com\/article\/mortgages\/the-20-mortgage-down-payment-is-dead<\/a> <\/li>
  4. Zillow –
    \n    https:\/\/www.zillow.com\/mortgage-learning\/closing-costs\/<\/a> <\/li>
  5. Realtor.com – <\/a>
    \n    https:\/\/www.realtor.com\/research\/we-should-be-in-a-buyers-market-right-now-but-covid-turned-everything-upside-down-best-time-to-buy-a-home<\/a><\/li>
  6. Business Insider –
    \n    https:\/\/www.businessinsider.com\/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9<\/a> <\/li>
  7. National Association of\nRealtors –
    \n    https:\/\/www.nar.realtor\/sites\/default\/files\/documents\/2019-remodeling-impact-10-03-2019.pdf<\/a> <\/li>
  8. House Logic –
    \n    https:\/\/www.houselogic.com\/save-money-add-value\/add-value-to-your-home\/adding-curb-appeal-value-to-home\/<\/a> <\/li>
  9. Virginia Cooperative Extension\n–
    \n    https:\/\/www.pubs.ext.vt.edu\/content\/dam\/pubs_ext_vt_edu\/426\/426-087\/426-087.pdf<\/a> <\/li>
  10. HomeLight –
    \n<\/a>    https:\/\/www.homelight.com\/blog\/top-agent-insights-for-q2-2020\/<\/a><\/li>
  11. U.S. Department of Energy –
    \n    https:\/\/www.energy.gov\/energysaver\/articles\/how-much-can-you-really-save-energy-efficient-improvements<\/a> <\/li>
  12. Ipsos –
    \n    https:\/\/www.ipsos.com\/en-us\/urban-plates-ipsos-NY-Resolutions<\/a> <\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

    The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021. Home […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,8,7],"tags":[9,11,10,5],"_links":{"self":[{"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/posts\/53"}],"collection":[{"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":1,"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/posts\/53\/revisions"}],"predecessor-version":[{"id":55,"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/posts\/53\/revisions\/55"}],"wp:attachment":[{"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/categories?post=53"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/tomweeks.net\/wordpress1\/wp-json\/wp\/v2\/tags?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}