What is HOA? What You Need to Know About Rules and Regulations

Lobbying for change in your homeowners association’s rules requires procedure, compromise, and perhaps joining the board.

If you live in a newer suburban community or planned unit development, you're probably a member of a homeowners association. More than 74.1 million Americans live in homeowners associations, condominium communities, cooperatives, and other planned communities, according to Community Associations Institute. It’s also a good bet that you hadn't given your HOA much thought until you had a problem.

Since HOAs make and enforce the community rules, it’s smart to understand what you can do if you can’t or don’t want to follow them.

How an HOA Works

Each HOA, a volunteer group of neighbors who manage common areas and community property, creates its own covenants, conditions, and restrictions (CC&Rs). These CC&Rs cover subjects such as:

• Resident behavior (no glass containers around the pool)

• Architecture (no fences higher than eight feet)

• Common responsibilities (fee schedules and fines for non-compliance)

The mean monthly dues for a homeowners association is $191, according to the U.S. Census Bureau American Housing Survey 2021. And there’s value in the fee.

Disputes With the Board Can Escalate

Some boards can impose what some homeowners believe are invasive, silly, or even inconsistent rules. Yahoo! News reported a situation in which a homeowner submitted a plan for four window when the other homeowners had eight windows. The board rejected the first plan she submitted, but approved the second one, which was for four windows.

After the homeowner installed the four windows, a dispute started between the homeowner and the board about who would pay to switch the number of windows back to eight. The homeowners ended up being fined thousands of dollars, and the board put a lien on her house, and threatened to foreclose. The homeowner then sued the board and won. But the board plans to appeal.

Steps to Take When You Don't Like the Rules

Even if you disagree with the rules, keep paying your dues. HOAs have broad legal powers to collect fines and fees and regulate activities. If you don’t respond to letters from the board, property manager, or a collection agency, the HOA can and will turn to small claims court or file a lien against your property.  

You can handle some issues with a phone call. For example, adding recycling to the garbage collection route is a budget, not a rules, issue. Call the board member who oversees trash collection to find out if there’s leeway in the budget. If you want to do something that’s against the rules — like flying the American flag in your yard — start by:

• Making a written request for variance, using the appropriate HOA form in your CC&R documents. A variance gives you permission to be the exception to the rule. Submit your request to the board and property management company. 

• Seeking a compromise: For example, you could request permission to fly the American flag only on national holidays.

Don’t Expect a Quick Solution

Some HOA boards meet as infrequently as twice a year. If the board decides the issue is worth pursuing, it may require a community vote. If it passes a majority, the board will adopt it. Board members also may consult the HOA attorney to see if there’s a legal liability if they rule against you.

If you don’t get a timely response, request a hearing and resubmit your request for variance with as much support for your cause as possible. 

If the board rules against you without a community vote, you can appeal the ruling with a petition signed by a majority of other homeowners.

Fine Reality

If you fly your flag without permission, however, expect to be fined. Fines can range depending on the issue. Your CC&Rs will indicate the fine schedule — per day, per incident, etc. Interest for nonpayment can accrue, and the HOA can sue you in small claims court. 

If you think the ruling or the fines are unjust, the last resort is to hire an attorney and sue the HOA.

Become the Rule-Maker

If you don’t like the rules, the best way to change them is to become part of the process.  

Know your CC&Rs, annual budget, and employee contracts — Do you see areas where expenses can be cut? Are service providers doing their jobs? 

Volunteer for a committee or task — If the board needs to enforce parking rules, for instance, you can volunteer to gather license plate numbers of residents’ vehicles. In addition, put your professional expertise to work: Assist the board with data entry, accounting, or website design. 

Stand for election to the board — When a position becomes open, the board notifies the members, and you can put your name forward. New board members are elected at the annual meeting by member majority vote. Many boards are three to nine members large, with terms of one to two years.

Involvement Drawbacks

As a board member, be prepared to spend two to four hours a month:

• Reviewing property management reports

• Monitoring budgets

• Talking to other board members and residents

Most boards meet quarterly; small boards meet only twice a year for a couple of hours.  

Accept that you might become less popular if homeowners don’t like your decisions. In the worst case, you could be sued, along with the rest of the association.

Involvement Benefits

There are rewards. You’ll feel more in control of your community’s fate. You may find that some rules you didn’t support have merit after all. But most of all, you’ll know you’re doing all you can to protect your quality of life and your home’s value.

For the original article by BLANCHE EVANS visit Houselogic.com.

6 Questions First-Time Home Buyers Never Ask Themselves (but Really, Really Should)

There’s a certain point in the lifecycle of renting where you say to yourself: I just can’t do this anymore. Maybe it’s the upstairs neighbors, who relentlessly stomp across their apartment into the wee hours of the morning. Maybe it’s the numbingly dull white walls you’ve stared at year after year. Or perhaps it’s that bitter pill of knowledge that your hard-earned money is circling down the drain—en route to paying someone else’s mortgage.

No matter the reason, most of us eventually hit a breaking point with renting, and vow to become first-time home buyers.

But just because you want to buy a home doesn’t mean you should buy a home. Even if you’ve already evaluated your finances and told yourself, “I can swing a down payment,” there are some additional key questions to ask to determine whether you’re ready. Here, we unveil some oft-overlooked, soul-searching inquiries that you really should ask yourself before you make the biggest financial commitment of your life. Ready?

Find a real estate agent

A local real estate agent can answer questions, give guidance, and schedule home tours.

1. Have I recently experienced a loss?

If you’ve recently gone through a breakup, lost your job, or suffered any other kind of negative life event, you might feel like the answer is to start over. A reset can indeed do you a world of good, but taking on a mortgage probably won’t be the fresh new beginning you’re looking for.

“The most challenging time in someone’s life to buy a home is during a time of loss—and that can be many kinds of loss,” says Tyler Whitman, real estate agent with TripleMint in New York. “If it’s truly a high-stress moment, adding a move on top of that only makes things worse.”

Even if you think you’re in a good place, emotionally speaking, Whitman warns that stress might cause you to subconsciously make your housing decisions out of fear. It’s better to wait until you’re past a situation and can know you’re making the best choice for you.

2. If I get a new job, will I have to move?

The job market has changed drastically since the days when your parents bought a home, and you should know how that will affect you before you buy.

“Previous generations planned to get one job, keep it forever, and retire. Buying into a house because they were looking for a permanent living situation made a lot more sense,” says Chandler Crouch, broker for Chandler Crouch Realtors in Fort Worth, TX. “Now, job-hopping is prevalent.”

Changing jobs won’t be a big deal if you can keep—or raise—your salary, and your new gig is in your current city. But if there aren’t a ton of jobs in your industry in your area, you may find yourself having to relocate a year after you bought your home.

“It honestly isn’t a good idea to buy a house unless you plan on staying there for at least five years,” Crouch says. If you sell earlier, you may end up taking a loss on the deal.

3. Am I ready to write (a lot) of checks beyond the down payment?

Here’s the good news: Mortgage requirements have been loosening since the credit crunch, and you may very well be able to buy with less than 20% down. But the bad news is that won’t be the end of your upfront costs. Hire a mortgage broker and you could pay a 1% to 2% fee on the amount of the loan. A home inspection will cost you a few hundred. Your closing costs could add up to 7% of the total cost of the home. And then there’s the Murphy’s Law of it all: If something can go wrong, it probably will.

“If the air conditioner breaks a month after you close, or the dishwasher gives out, that’s now up to you,” Whitman says.

If you don’t have the funds to cover your closing costs and a separate emergency account for the inevitable “just moved in” headaches, it might be better to wait until you do.

And don’t forget about the additional costs of things like homeowner insurance and taxes. (Although you’ll likely be eligible for some pretty sweet tax deductions for being a homeowner, you’ll still have to pay property taxes—and that can mean a bit of sticker shock for long-term renters.)

4. Am I OK with owing the bank lots of money for a long time?

One of the biggest benefits of homeownership, of course, is the equity. Instead of handing all your hard-earned cash over to a landlord, you’re putting it back into your home—which you (hopefully) will sell for a profit down the line. But that equity doesn’t happen immediately. In fact, for many buyers, it takes time. Sometimes a long time.

Unless you pay for your house in cash, you’ll be on the hook for not only your monthly mortgage payment but the interest on the loan as well. Stretching out your payments over more years—as with a 30-year fixed-rate mortgage—can help reduce (and stabilize) your interest charges. But it can be hard to pay down your principal when you’re constantly trying to cover other costs.

It’s part of being a homeowner, and you need to decide if you’re good with it.

“Anyone considering buying needs to look at an amortization schedule to see exactly how much out of their monthly payment will be going toward paying off the house,” Crouch says.

5. Is buying truly cheaper in the long run?

This one depends quite a bit on where you live.

So do the math. Understand that when you’re buying, you’ll be taking on a big down payment and all those additional costs. On the other hand, you’ll want to take a look at your local rental market. If your rents are increasing steadily year over year, you might be shelling out more on temporary housing then you would on your own home each month. And you may find yourself with your savings too depleted to buy.

“On average landlords raise rent 7% per year,” Crouch says. “This is a compounding increase in expense.”

That could mean that buying, while a punch to the wallet now, will be more affordable in the long run. But if you live in a more stable rental market, it could be better to sock away some cash and wait a few more years to purchase a home. You can use our handy Rent vs. Buy Calculator to crunch the numbers and decide what’s right for you.

6. Am I secretly trying to talk myself into it?

Your co-workers don’t understand why you’re still renting. Your friends are all buying their first homes. You’ve been saving for years specifically so you can buy a house and become a key-carrying member of the Great American Dream. It may seem like you should just buy already, but try asking yourself: Do you really, truly want to?

Even if it might make sense on paper, Crouch still recommends asking yourself three questions before you finally decide:

• Am I trying to sell myself on the idea of buying a home?

• Am I trying too hard to justify it financially?

• Do my reasons to buy outnumber my reasons not to buy?

After all, buying a home is arguably the biggest financial (and, sometimes, emotional) commitment you’ll ever make. You need to be sure it’s right for you—no matter what anybody else says.

For the original article By Angela Colley on Aug 30, 2020, visit Realtor.com

Replacing Your Deck? Here's How Much You Should Expect to Pay

Wondering whether to repair or replace your deck? Learn about costs, DIY vs. pro jobs, and money-saving tips.

Decks allow for outdoor dining, relaxation, and entertainment. However, they also deteriorate over time due to wear and tear, so understanding the average costs of deck repair and replacement is crucial for homeowners.

The average cost to repair a deck is about $2,000, but this figure varies depending on the extent of the damage and the materials needed. Standard repair tasks include replacing damaged boards, reinforcing structural supports, and refinishing the surface. The cost to replace a deck is typically around $15,000. However, this price varies depending on the deck size, materials, labor, permits, inspection, scope of work, and geographical location.

Average Deck Repair Costs

Deck life spans typically range from 10 to 30 years, and the cost and quality of deck materials often correlate with the frequency of repairs. The average cost ranges from a few hundred to several thousand dollars, depending on the scope of work and the geographic location of the home.

Minor repairs—such as replacing broken nails, boards, or loose railings—might cost between $100 and $4,000. More extensive maintenance involving structural issues or replacing a significant portion of the deck escalates the cost. This wide range of potential expenses underscores the importance of understanding the average deck repair costs before committing to a contractor.

Average Deck Replacement Costs

“The average price for a new, professionally built deck is around $20,000-$25,000, but you can get a smaller wood deck for as low as $10,000, and some maintenance-free options such as composite or PVC decking could cost as much as $60,000 or more,” says Diego Machado, president at Charlotte Deck Builders. While the initial cost may seem high, investing in a new deck brings long-term benefits, such as a competitive advantage when it’s time to sell and an enhanced outdoor living space if you decide to stay for the long term.

Factors That Affect Deck Replacement Costs

Machado says that some factors influencing the deck replacement costs are, “First, the size. The bigger the deck, the more expensive it will be. The second is the type of material used. A 100 percent wood deck is cheaper, but it requires some maintenance like repainting and sometimes replacement,” he says.

While the geographical location of your house affects the labor and material costs, the physical location of the deck also impacts the cost. If it is difficult for laborers to work under specific temperature, time, or space limitations, they may pass on the cost to you. Additionally, unique lighting and railing features also increase prices. Hiring a professional increases the final price, but DIYing increases the amount of time and the risk burden for the homeowner.

DIY vs. Hiring a Professional

Hiring a professional can significantly affect the overall cost of deck repair or replacement. “A professionally built deck usually costs three times more than the materials for a DIY deck, but it’s really important to know your local building codes. Simple structural mistakes, such as joists and beam sizes, post-to-beam connections, or even the way you use screws and nails, are fundamental to the durability and integrity of the deck. Ignored mistakes could put your family at risk or cost even more to rebuild,” notes Machado.

So, while DIY repairs may seem cost-effective initially, they require time, skills, and tools. Replacing a few boards or applying fresh deck stain is manageable for DIY enthusiasts. However, for long-term safety, complex structural repairs or complete deck replacements are best left to professionals. Hiring a professional contractor can ensure the job has the right permits and is done correctly, albeit at a higher cost.

The 9 Best Deck Stains of 2024 to Protect and Revive Your Deck

Tips and Strategies for Saving on Deck Replacement Costs

Several strategies can help you save money on a deck replacement.

• Consider cost-effective materials, like pressure-treated lumber or composite decking, over expensive premium hardwoods or imported materials.

• Reuse existing deck components. Framing or railing can sometimes be salvaged and reused to reduce material costs.

• Shop around. “If you intend to replace your deck fully. I would also advise that you shop around for companies who can provide this service. In doing this, you may be able to find a business who can source materials for cheaper or charge less for their time and labor,” advises Mike Falahee, president of Marygrove Awning Co.

• Obtain multiple quotes from different contractors to negotiate the best value for price. Falahee adds, “Keep an eye on the cost difference between certain materials. You should also maintain your deck yourself to prevent damage.”

• Keep the deck size small. Another cost-saving tip is to keep your deck size small. It may be hard to define precisely how much space you need, but consider the deck’s purpose. If it will be primarily used for lounging and grilling, you might not need as much space as if you plan to host regular outdoor family meals. Take time to consider reasonable sizes for your desired deck experiences and research different materials best suited for the job.

Tips for Prolonging the Life of Your Deck

Quarterly maintenance prevents minor issues from becoming major headaches. Promptly address any early warning signs of deterioration or weather damage to extend the life span of your deck and minimize repair expenses.

Additionally, avoid excessive weight loads, keep the deck surface clear of debris, and don’t lean heavy items on the support beams. Watch out for wood-eating bugs and any wobbling. Both jeopardize the structural integrity of your deck.

Do I Need to Replace My Deck?

If your deck is over two decades old or is in visibly poor shape, the best option might be to replace it rather than undertake cosmetic repairs. Signs that it’s time to replace your deck include significant termite damage, rotting, warping wood, mold, cracked or damaged support posts, loose railings, loose or bowing boards, and wobbly stairs.

Consult with a decking professional to help your family safely enjoy your deck for many years.

For the original article visit Better Homes and Gardens

Real Estate Is Still the Best Long-Term Investment

Some Highlights

• According to a recent poll from Gallup, real estate has been voted the best long-term investment for twelve straight years.

• That’s because a home is so much more just than a roof over your head. It’s also an asset that typically grows in value over time. 

• If you’ve been debating if it makes more sense to rent or buy, connect with a real estate agent to talk about why homeownership can be a better bet in the long run. 

For the original article visit KeepingCurrentMatters.com

9 Things to Consider Before Installing Solar Panels

Solar experts say these are the key factors to consider before committing to solar panels.

Solar panels have become increasingly popular among homeowners seeking ways to reduce their carbon footprint and save on energy bills. While solar panels can provide significant long-term savings and environmental benefits, they can also come with high upfront installation costs. They're not practical for every home or homeowner.

To know if solar panels are right for you, consider the weather conditions in your area, the slope of your roof, average monthly energy usage, and the length of time you plan to live in your home. Before installation can happen, you’ll need to understand better all possible financing options, as well the policies in place at your local utility company.

The 9 Best Solar Generators of 2024

How to Decide if Solar Panels Are Right for Your Home

Solar experts share the most important factors in deciding if solar panels are right for you.

Amount of Sunlight

First things first, if your home is in an area that doesn’t get much sun or has long parts of the year when it is overcast or dark, solar panels might not be right for you. Alan Duncan, founder of Solar Panels Network USA, says homeowners must evaluate their energy needs and the amount of sunlight their property receives. Does it tend to be cloudy or sunny where you live? Knowing the amount of sunlight your home gets during peak hours will aid in determining whether solar power would be a good energy solution for your household. If you’re not sure where to start, try free resources like Energy Sage and the free PDF e-book, To Catch the Sun, by Lonny Grafman and Joshua M. Pearce, Ph.D.

Roof Size and Slope

A roof’s orientation and condition determine whether it can support solar panels. Duncan says the direction and angle of the roof impacts solar panel efficiency. “Ideally, your roof should face south and have an angle between 30 and 45 degrees to maximize the amount of sunlight your panels receive,” he says. If your home has a flat roof, you may still be able to install solar panels. An expert installer will know how best to mount them to capture the most sunlight possible. 

Neil Gallagher, co-founder of BrighterWay Solar, reminds homeowners to ensure there is minimal shade or tree cover over their solar panels. If there is, be sure to budget for regular landscaping to have leaves and trees removed or trimmed. 

Roof Age and Condition

Solar panels can be installed on most roof types, including asphalt shingles, metal roofs, and flat roofs. But Duncan notes that a roof’s condition and age can impact the installation process and solar panel efficiency. He recommends assessing whether your roof is nearing expiration or in need of repairs. Also, Gallagher adds that it’s a good idea to have extra tiles on hand for tiled roofs, in case any get cracked during the installation process.

Current Energy Usage

Duncan also notes that having an understanding of energy usage patterns and how much your current energy bills are will help determine how much solar energy you need to generate. A reputable installer will estimate the cost per unit power ($/W). Dr. Pearce says to verify installer’s numbers against the free U.S. government site Pvwatts, and see if your solar panel system can produce enough energy to fully replace current household usage from the grid.

Budget and Financing

“While solar panels can provide significant cost savings in the long term,” Duncan says, “the initial investment can be expensive.” It is important to consider your installation budget to decide if the future utility savings is worth the swap. There are many financing options, such as solar leases and power purchase agreements. Most panel systems come with long-term warranties and limited maintenance, but you’ll need to consider any additional costs associated with homeowner’s insurance and roof care. 

For homeowners who only plan to live in their homes for just a few years before selling, installing solar panels may not be a good investment. However, if you’re living in your forever home and expect to have decades to see the savings accrue, solar panels tend to be a good long-term investment.

Incentives & Tax Credit Programs

There are many programs to incentivize homeowners to switch to solar energy. The Office of Energy Efficiency & Renewable Energy updated its guide for Federal Tax Credits for 2023. There are also state programs for which many homeowners may be eligible. Many of these incentives are rebate programs that reimburse after you’ve already paid the upfront costs. So, it’s important to be able to absorb the initial costs and ensure you prepare all the documentation and process steps needed to get the maximum in rebates and incentives owed.

Available Providers

Gallagher encourages homeowners to research various installation companies and sales companies, which provide two separate services. “The sales organization is its own entity, and it will sell a product to the homeowner and turn it over to an installer that they have partnered with,” he says. It’s important to research both companies thoroughly to find the right combo for you. Also, not all solar companies provide services in every part of the state, so if you're looking for a solar provider in Florida, for example, check the company’s website for details.

City or HOA Approval

Before installing solar panels, you will likely need to obtain permits and approvals from local authorities. Duncan says that many cities and homeowner associations (HOAs) have specific guidelines for solar panel installation. Failure to obtain approval prior to the installation company beginning the work can result in fines or legal action. “To obtain approval, you will need to submit a permit application and detailed plans outlining the design and location of your solar panel system,” he says. Local solar installers usually can assist homeowners with this process to ensure the installation complies with all relevant regulations and guidelines, but it is the homeowner’s responsibility to confirm and comply with any state, county, and local regulations that may apply. 

Storing Excess Energy

Each utility company has its own rules about net metering and selling excess energy back to the grid. In many cases, when a household uses less energy than the solar panels harvest, the utility grid is willing to put those megawatts to good use and provide credits for the excess. The amount will vary depending on the utility company and region. Otherwise, you can store excess energy on batteries to use later when there’s low sunlight or high energy demand. Have a plan in place to ensure long-term sustainability.

For the original article By Nafeesah Allen on April 17, 2023 visit Better Homes and Gardens

Thinking of Selling? You Want an Agent with These Skills

Selling your house is a big decision. Your home is one of the biggest investments you’ve probably ever made, and it’s a place where you’ve created countless memories. That combo means there’s going to be a lot of emotions involved. You want someone who understands your perspective, knows what it feels like, and is an expert at helping homeowners just like you navigate the process of selling a home.

That’s where a good listing agent, also known as a seller’s agent, comes in. Here are just a few skills you’ll want your agent to have.

The Ability To Turn Something Complex into Something Simple

Some agents are going to use big, fancy real estate terms to try and impress you. But you shouldn’t have to know all the industry jargon in order to understand what they’re saying. If anything, it’s an agent’s job to keep it simple, so you don’t get overwhelmed or confused.

A great agent is going to be someone who is very good at explaining what’s happening in the housing market in a way that’s easy to understand. But they’ll take it one step further than that. They’ll explain what’s going on and, specifically, what that means for you. That way you’re always in the loop and it’s a lot easier to feel confident when you’re making a big decision. As Business Insider explains:

“Maybe you have a better rapport with one of the agents you’re considering, or you just feel like they’re easier to approach. You’re going to be working closely with this person, so it’s important to choose an agent you’re comfortable with.”

A Data-Based Approach on How To Price Your House

While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean your house will sit on the market longer because the higher price is actually turning away buyers.

Instead, partner with an agent who’s going to have an open conversation about how they recommend you should price your house. They won’t throw out a number just to win your listing. A great agent will back up their number with solid data, explain their pricing strategy, and make sure you’re both on the same page. As NerdWallet explains:

“An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.”

A Fair, but Objective Negotiator

The home-selling process can be emotional, especially if you’ve been in your house for a long time. But that sentimental tie can make it harder to be objective during negotiations. That’s where a trusted professional can really make a difference.

They’re skilled negotiators who know how to stay calm under pressure. You can count on them to handle the back-and-forth and have your best interests at heart throughout the process. Not to mention, they’ll be able to rely on their market expertise and what they’re seeing work in other transactions to offer the best advice possible. As Rocket Mortgage explains:

“Whether this is your first or third time selling a house, listing agents work to help make the home selling process smoother and less stressful. These real estate professionals know the ins and outs of the industry and can help you secure the best deal.”

Bottom Line

Whether you're a first-time seller or you’ve been through this before, a great listing agent is the key to your success. Connect with a real estate professional so you have a skilled local expert by your side to guide you through every step of the process.

For the original article visit Keeping Current Matters.

Tips for Younger Homebuyers: How To Make Your Dream a Reality

If you’re a member of a younger generation, like Gen Z, you may be asking the question: will I ever be able to buy a home? And chances are, you’re worried that’s not going to be in the cards with inflation, rising home prices, mortgage rates, and more seemingly stacked against you.

While there’s no arguing this housing market is challenging for first-time homebuyers, it is still achievable, especially if you have professionals on your side.

Here are some helpful tips you may get from a pro.

1. Explore Your Options for a Down Payment

If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000 down payment assistance programs designed to make homeownership more achievable. And, that’s not the only place you may be able to get a helping hand. While it may not be an option for everyone, 49% of Gen Z homebuyers got money from loved ones that they used toward a down payment, according to LendingTree.

And chances are you won’t need to put 20% down (unless specified by your loan type or lender). So be sure to work with a trusted mortgage professional to explore your options, find out how much you’ll really need, and learn about any guidelines on getting a gift from loved ones.

2. Live with Loved Ones To Boost Your Savings

Another thing a number of Gen Z buyers are doing is ditching their rental and moving back in with friends or family. This can help cut down your housing costs so you can build your savings a whole lot faster. As Bankrate explains:

“. . . many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”

3. Cast a Broad Net for Your Search

When you’ve saved up enough, here’s how a pro will help you approach your search. Since the supply of homes for sale is still low and affordability is tight, they’ll give you strategies and avenues you may not have considered to open up your pool of options.

For example, it’s usually more affordable if you consider a rural or suburban area versus an urban one. So, while the city may be livelier and more energetic, the cost of living may be reason enough to look at something further out. And if you consider smaller homes and condos or townhouses, you’ll give yourself even more ways to break into the market. As Colby Stout, Research Analyst at Bright MLS, explains:

“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”

4. Take a Close Look at Your Wants and Needs

And lastly, an agent can help you really think about your must-have’s and nice-to-have’s. Remember, your first home doesn’t have to be your forever home. You just need to get your foot in the door to start building equity. If you want to buy, you may find making some compromises is worth it. As Chase says:

“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”

An agent will help you prioritize your list of home features and find houses that can deliver on the top ones. And they’ll be able to explain how equity can benefit you in the long run and make it possible to move into that dream home down the line.

Bottom Line

Real estate professionals have expertise on what’s working for other buyers like you. Lean on them for tips and advice on ways you can get ready to buy. As Directors Mortgage says, with that support you can make it happen:

“The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”

For the original article, visit Keeping Current Matters.

The Perks of Buying over Renting

Thinking about buying a home? While today’s mortgage rates might seem a bit intimidating, here are two solid reasons why, if you’re ready and able, it could still be a smart move to get your own place.

1. Home Values Typically Go Up Over Time

There’s been some confusion over the past year or so about which way home prices are headed. Make no mistake, nationally they’re still going up. In fact, over the long-term, home prices almost always go up (see graph below):

Using data from the Federal Reserve (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn’t follow the normal pattern, but generally, home values kept rising.

This is a big reason why buying a home can be better than renting. As prices go up and you pay down your mortgage, you build equity. Over time, this growing equity can really increase your net worth. The Urban Institute says:

“Homeownership is critical for wealth building and financial stability.”

2. Rent Keeps Rising in the Long Run

Here’s another reason you may want to think about buying a home instead of renting – rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to data from iProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below):

So how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.

Your housing payments are like an investment, and you’ve got a decision to make. Do you want to invest in yourself or keep paying your landlord?

When you own your home, you’re investing in your own future. And even when renting is cheaper, that money you pay every month is gone for good.

As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says:

“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”

Bottom Line

If you're tired of your rent going up and want to explore the many benefits of homeownership, talk to a local real estate agent to explore your options.

For the original article visit Keeping Current Matters.

What Is Going on with Mortgage Rates?

You may have heard mortgage rates are going to stay a bit higher for longer than originally expected. And if you’re wondering why, the answer lies in the latest economic data. Here’s a quick overview of what’s happening with mortgage rates and what experts say is ahead.

Economic Factors That Impact Mortgage Rates

When it comes to mortgage rates, things like the job market, the pace of inflation, consumer spending, geopolitical uncertainty, and more all have an impact. Another factor at play is the Federal Reserve (the Fed) and its decisions on monetary policy. And that’s what you may be hearing a lot about right now. Here’s why.

The Fed decided to start raising the Federal Funds Rate to try to slow down the economy (and inflation) in early 2022. That rate impacts how much it costs banks to borrow money from each other. It doesn’t determine mortgage rates, but mortgage rates do respond when this happens. And that’s when mortgage rates started to really climb.

And while there’s been a ton of headway seeing inflation come down since then, it still isn’t back to where the Fed wants it to be (2%). The graph below shows inflation since the spike in early 2022, and where we are now compared to their target rate:

As the graph shows, we’re much closer to their goal of 2% inflation than we were in 2022 – but we’re not there yet. It’s even inched up a hair over the last 3 months – and that’s having an impact on the Fed’s plans. As Sam Khater, Chief Economist at Freddie Mac, explains:

“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates.”

Basically, long story short, inflation and its impact on the broader economy are going to be key moving forward. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“It’s the longer-term outlook for economic growth and inflation that have the greatest bearing on the level and direction of mortgage rates. Inflation, inflation, inflation — that’s really the hub on the wheel.”

When Will Mortgage Rates Come Down?

Based on current market data, experts think inflation will be more under control and we still may see the Fed lower the Federal Funds Rate this year. It’ll just be later than originally expected. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), said in response to the Federal Open Market Committee (FOMC) decision yesterday:

“The FOMC did not change the federal funds target at its May meeting, as incoming data regarding the strength of the economy and stubbornly high inflation have resulted in a shift in the timing of a first rate cut. We expect mortgage rates to drop later this year, but not as far or as fast as we previously had predicted.”

In the simplest sense, what this says is that mortgage rates should still come down later this year. But timing can shift as new employment and economic data come in, geopolitical uncertainty remains, and more. This is one of the reasons it’s usually not a good strategy to try to time the market. An article in Bankrate gives buyers this advice:

“ . . . trying to time the market is generally a bad idea. If buying a house is the right move for you now, don’t stress about trends or economic outlooks.”

Bottom Line

If you have questions about what’s happening in the housing market and what that means for you, connect with a trusted real estate professional.

For the original article, visit Keeping Current Matters.

Equity Can Make Your Move Possible When Affordability Is Tight

Some Highlights

• Did you know the equity you have in your current house can help make your move possible?

• Once you sell, you can use it for a larger down payment on your next home, so you’re borrowing less. Or, you may even have enough to be an all-cash buyer. 

• The typical homeowner has $298,000 in equity. If you want to find out how much you have, connect with a local real estate agent for a Professional Equity Assessment Report.

For the original article visit Keeping Current Matters.