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It seems everyone is jumping on the rustic-chic bandwagon, but what exactly is “modern farmhouse” style, and how do you discern which of its characteristics have lasting impact? Here’s the short answer: Study the classics. Incorporating the following three time-honored design elements into your home will help you achieve this popular look and ensure that your style remains desirable for years to come. Let’s take a look at the elements separately, and then see how they work together.  The Basics 1. Shiplap. Shiplap is an architectural staple that was around long before it started filling up your Houzz ideabooks. It blends into almost any aesthetic and can be incorporated into virtually any room in your home. For one of our projects (shown here), our clients wanted to take a more contemporary direction, so we kept the lines of the shiplap sharp and precise. We paired it with more streamlined furnishings as well, including a midcentury modern accent chair and a crisp white sofa. Continuing the horizontal lines straight from the walls onto the sliding door of this Charlotte, North Carolina, kitchen makes for an integrated look, proving that shiplap should not be limited to walls alone. The choice to use “barn door” hardware is also a great way to echo a farmhouse motif without going overboard. Bathrooms, living rooms, kitchens, bedrooms — shiplap looks great anywhere. The key is to be selective and try not to use it everywhere at the same time. In this particular setting, we love the way the window and the shiplap entice you to slow down and appreciate the surroundings. Perhaps the architect drew inspiration from an old church and then brought the exterior to the interior. Who wouldn’t want to spend an hour soaking in that tub? From the smallest reading nook to the largest living room, shiplap looks at home and adds character. It fits in equally well in a coastal cottage or a little house on the prairie. If you are renovating an older home or building a new one from scratch, don’t underestimate the power of architectural elements like shiplap to bring the charm. This entryway is automatically more interesting because of its shiplapped walls, which allow the handrail and balusters of the stairs to remain straightforward and understated.  2. Antiques. Nothing creates a space that feels cozy and collected over time quite like an antique. Whether passed down through the family for generations or found at a local flea market, that perfectly ageless piece really helps finish off any vignette. Something old creatively becomes something new again when reimagined with a different function. Relocating a chest of drawers from a bedroom to a bathroom morphs it into a vanity with tons of great storage — and lends beautiful patina. Transforming artifacts into art is a common trick of the modern farmhouse trade. For example, the lamps on these nightstands were relics that once probably held oil or water. But now, they are a lovely source of task and ambient lighting as well as a welcome textural addition in this master retreat. Antique furnishings have a distinct way of packing a visual punch as demonstrated by the gorgeous yoke-back chair in this design. Often, an antique becomes the focal point of a seating group or furniture arrangement because it doesn’t necessarily fit in with the other pieces around it. If it looks like a nostalgic memento from the American dream, or a piece of ancient history from an exotic land, don’t shy away from introducing a piece of the world’s past into your present.  3. Industrial lighting. It’s not often that the adjectives “rough” and “imperfect” are sought-after qualities. However, light fixtures with an industrial edge certainly make a good case. Nowadays, we find old-fashioned warehouse pendants being plucked straight from an actual warehouse and dropped directly above a kitchen island. Authentic farmhouse light fixtures are typically more concerned with fulfilling a function rather than making a fashionable statement. But the modern take on industrial lighting works hard and brings the wow factor. This space was designed for a teen to have plenty of room to spread out his schoolwork, but it also serves as a hip hangout for his friends. There’s an endless array of colors and finishes available on the market, so you shouldn’t have any trouble finding an industrial-style light that fits your needs and budget. Choose a color that complements the other elements in your space. In this mudroom, the black shade of the ceiling light echoes the black pulls on the upper built-in cabinetry. Put It All Together Industrial lighting and antiques.Reclaimed ceiling beams and deconstructed armchairs bring the rustic charm to this scene. Balancing out those more raw features with modern sconces (and swoon-worthy steel windows) updates the look and prevents it from leaning too Shabby Chic.  Industrial lighting and shiplap.This bathroom is a great example of popular modern farmhouse style thanks to a shiplap wall and industrial sconces. Though the vanity itself does not appear to be a true antique, it does have an aged look, and the warm stain is a welcome foil to the cooler tiles found in the shower and on the floor.  Shiplap, antiques and industrial lighting. This cozy nook displays a modern farmhouse trifecta. The antique chest, pharmacy-style floor lamp and shiplapped walls converge for a space that feels both modern and carefully collected over time. Keeping the overall color palette white and bright allows the chest to steal the show. A rustic lantern, clean shiplap walls and an antique farmhouse table create an ideal setting for a relaxed meal. Top it off with hydrangeas and buffalo check pillows and it’s downright dreamy.  Finally, this kitchen sings with the harmonizing trio of modern farmhouse style. The consistent lines of the shiplapped walls act as an excellent backdrop for a collection of accessories that exude old-fashioned sophistication. The antique Oushak runner is a soft counterpoint to the angular lines of the industrial sconces above. This kitchen has classic appeal that the homeowners are sure to love for many years. By Marie Flanigan, Houzz
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Whether you’ve sold one home or ten homes, there are things that you need to know before listing your home for sale. The home selling process is one that could be as smooth as freshly poured blacktop or it could be one with twists, turns and speed bumps galore; but if you are being guided by the right real estate professional the process is vastly simplified.  Selling a home can be an inconvenient. It can create stress and anxiety as well as lead to thoughts of uncertainty. This doesn’t always have to be so; these feelings can be minimized with the right preparation and game plan from the beginning. Before you begin the home selling process, there are several things that you need to know before you begin. Here is a start: Hire a great Real Estate Professional Often the most overlooked step when selling a home is the importance of hiring a REALTOR®. They are not all the same! You should have high expectations of the individual that you hire to sell one of your biggest assets! Interview many to ensure you have the one that meshes with you and your family. Answers all of your questions properly and will satisfy your needs. A Real Estate Professional that listens to your needs is often a good one. All Information, Paperwork, and Documents on the home are crucial Your Realtor® knows what vital information should be included in the information of the house they’re selling. What does this have to do with gathering paperwork and documents? Having information on the major mechanics of the home and also any updates that have been done to the home will be extremely helpful for a buyer to make decisions. It not just about putting up a sign and waiting for it to sell. They should know how to incorporate and compelling information about your home to attract potential buyers in addition to creatively market the home. Examples may be:
Choosing your launch date wisely! Every real estate market is different. There are great times to sell and other times that may not be the most ideal. Generally speaking, the spring months are what everyone else considers the peak seasons. Real estate is situational in my opinion, meaning people don’t pick spring or summer to divorce or pass on – Life just happens. Your When selling a home, it’s important that you choose to sell your home when it’s most convenient for your individual situation. Your Real Estate Professional should have his or her finger on the pulse of the market and be able to guide you through when the best time to sell may be. They look at the market holistically as well as segmentally to determine when they can list your home to maximize what you put in your pocket. A Pre-Listing Inspection Is A Good Idea Before putting your home on the market, it can be a good idea to have a professional home inspector perform an inspection on your home. Home inspections are standard conditions of Offer to Purchase these days. By completing this pre-listing inspection, you can address the issues that the home inspector may note during the inspection. Ensure that the home inspector you hire for the pre-listing inspection will provide you with a detailed report and also pictures relating to anything they note in their report. Preparing Your Home For Sale. It’s important! Selling your home means you need to work a bit as well. The Real Estate Professional you hire should be able to identify items you may need to address during a walk-through of your home. They will identify items that may need to be corrected or repaired or may suggest painting, cleaning, de-cluttering; these are just a handful of low cost preparations that can be made, prior to selling a home. First impressions are crucial when selling a home. By not preparing your home for sale, this can often lead to a poor first impression and also can cost you thousands of dollars in the long run. It may take the extra time and effort to prepare your home, but you will totally be glad you did. Pricing The Home is Critical from the Start The most important factor to whether a home sells or doesn’t, relates directly to pricing. If you price your home too high from the start, it can actually cost you money. The price a home enters the market at will do the majority of the marketing of the home. It’s important to understand today’s buyers and know they are loaded with information and data at their fingertips. Buyers often will see many homes and understand the market, which will in turn give them an idea of where your home sits in the current market. Plus, lets face it – no one wants to pay the list price for anything. Choosing a Realtor® because they suggest the highest price or because they offer the lowest commission can be a mistake, so it’s important to educate yourself and avoid common real estate pricing mistakes. Preparing Your Home For Showings Can Be An Inconvenience When selling a home, you want to make your home appealing for potential buyers. What do you think the a potential buyer who walks through a home that has piles of dirty clothes on the bedroom floor or dirty pots and pans in the sink would think? Most buyers would be either distracted or disgusted, possibly leading to them not being interest in that home at all. Preparing your home for showings can be a job in itself and an inconvenience. Making sure the clutter is minimized, pet odors are eliminated, and that the curb appeal is attractive are just a few tips that can help prepare your home for showings. It’s possible that a home that is well prepared for showings will sell before an unprepared home just because the image that it portrays to potential buyers walking through the door.  Evaluate Whether Open Houses Are Worth It Or Not To host an open house or not to open house? Some real estate agents will swear that open houses are worth it and others will swear they are a huge waste of time. Ultimately, the decision whether they are worth it or not is yours, the homeowner. It’s true, you will most likely just be displaying your home to some nosey neighbors or people just walking by,; but it just takes the right person, perhaps the people walking by didn’t know they wanted a new home until they saw yours! Open houses is part of what I do and I have always found them to be beneficial to my clients. The above items are worth considering before selling your home. This process may result in added stress, anxiety, and unwanted uncertainty. These feelings though will be greatly reduced if the proper preparation is taken in advance. Understanding the importance of these things and how to make the proper decisions can make the difference of your home selling experience being a disaster or a success. By Carma Gramyk, Realty Times
The down payment has been a big obstacle in recent years for renters looking to buy their first homes. A new mortgage offering aims to ease the burden. Home Partners of America, a rent to own company, is offering a new mortgage product to tenants that applies some of the appreciation in their home’s value during the time they have lived there toward reducing the down payment. In areas with even modest home-price appreciation, that could reduce the down payment requirement to almost nothing.  To qualify, tenants must have paid their rent on time for two consecutive years and be considered first-time buyers, meaning they haven’t owned a home in the last three years. The program harkens back to the housing bubble, when millions of Americans received mortgages for homes they couldn’t afford with little or no down payment. Bill Young, co-founder and chief executive of Home Partners, said a critical distinction with his company’s program is that prospective buyers have been paying their monthly rent on the same home over a long period, demonstrating they can afford it and are committed to staying there. “Their skin in the game is they’ve proven they can pay their rent on time for 24 months,” Mr. Young said. Check the latest mortgage rates on Home Partners, which was started about five years ago and has purchased nearly 8,000 homes in more than 50 metropolitan areas, plans to offer the product to current tenants and those who sign a lease over the next two years, the duration of the pilot program. The company won’t make the loans itself, but is working with New Penn Financial, a Pennsylvania-based lender. The loans will be backed by mortgage company Fannie Mae, which recently has been experimenting with programs designed to ease credit for young buyers who are missing out on a recent surge in home prices because they haven’t saved enough for a down payment. Other pilots include a program under which Lennar Corp. will pay off a significant chunk of the student loan of a borrower who purchases a home from the Miami home builder. In another, buyers can receive up to $50,000 for a down payment if they agree to rent a room in their home on Airbnb. Rent-to-own companies have a poor reputation in the housing industry for taking nonrefundable deposits from tenants who clearly won’t ever be able to qualify for a mortgage or afford a home. Home Partners doesn’t take a nonrefundable deposit, so if the home’s value declines or they decide not to buy for any other reason renters can simply walk away. By Laura Kusisto | Wall Street Journal  Chip and Joanna Gaines haven't just taken over the airwaves on their uber-popular HGTV program, Fixer Upper. They're taken over the city of Waco with their Magnolia Market at the Silos. Those of us who live in Texas within a few hours' drive of Waco can get in the car and be at Magnolia easily to shop and soak in a little of that Gaines magic. But if you're planning a trip from farther away - and so many are! - preparation is key. Knowing what to expect and heeding a few tips can help ensure your trip is a good one. Bring your patience You're going to wait in line. Just accept it on arrival so you're not disappointed to see that you might have to wait awhile to get inside the store, or the super-busy Silos Baking Co, for that matter. But, there are some ways around it. According to the store's helpdesk, Magnolia "is busiest during the hours around lunch; particularly on Saturdays, when we see thousands of people come through our doors. We suggest coming near opening or closing hours to have the most peaceful shopping experience." We got lucky on our visit, arriving in mid-afternoon and strolling right in, but these people did not. Bring your wallet If you're a fan of Chip and Joanna's French country style, you may end up with far more merchandise than you'd planned. The store is filled with bits and baubles, pillows and lanterns, decorative wall hangings, candles and containers, kitchen items like mugs and bowls, and potted stuff and floral stems and some of the metal wall hangings Joanna favors in her fixed-up homes. You'll want two of everything.  TexasHighways.com At the very least, you'll probably have orders from friends and family to buy a bunch of Magnolia t-shirts and sweatshirts. If you're thinking you can just buy everything you like online, Popsugar cleared up that, "About 40 percent of the goods in their Magnolia Market store are available in their online shop, the other 60 percent can only be purchased at the physical location." Bring your appetite, too In addition to the Silos Baking Co, there is a rotating drove of food trucks lining the lawn where you can grab everything from mac ‘n cheese to hot dogs to crepes to cold-pressed juice. After all that shopping, you'll definitely want a snack. Bonus tip: Stake your claim on one of the covered tables for some shelter from the sun. Waco is HOT in the summer. We're not above a little table stalking when necessary. It's ok to bring the kids In fact, they'll probably have a blast, playing cornhole, kicking a ball around, and swinging on the swings. In the back of the property, where Magnolia Seed + Supply, the Gaines' outdoor mecca, is located, there's even a teepee. Keep in mind, though, that the breakability factor inside the store is high. Check the calendar ahead of time Many disappointed families have arrived in Waco all set to shop, eat, and play, only to find out that Magnolia Market and the Silos Baking Co. are closed on Sunday. This may affect your trip. You'll also want to pay attention to their Facebook page, which lists upcoming events like ongoing Movie Nights at The Silos and the Silobration in October. Make "just in case" plans for the rest of the day One of the things that stood out to us is how different our expectations were from the reality of Magnolia in terms of the time we would spend there. We were done in a couple of hours, and that was with some food truck and lawn-lounging time. If you want to continue along the Fixer Upper Tour, head to Harp and Co Design. This is woodworking master Clint Harp's nearby shop, where you can browse and buy before heading to JDH Iron Designs, Fixer Upper metal art designer Jimmy Don's shop, which is about a 25-minute drive through the countryside.  HGTV.com Stay in a Fixer Upper House The Harps' home that was fixed up on the show is right next door to their shop, and is now available for rent through Airbnb - and it's not the only one. The historic Magnolia House is also on Airbnb, although it's so popular, even at $695 a night, that it's booked through 2017. Do a search for "Fixer Upper Airbnb" for more options. Get there in style While parking is easy and free at Magnolia, you can add to the fun (especially for the kids) by taking the Silos District Trolley, which runs runs every 15 –20 minutes throughout the day and will stop anywhere along the route so you can hop on or off to browse the downtown area. Document your trip You'll undoubtedly go to great lengths to do so, because social media and friends demand it! Your family may look (mostly) ridiculous, but you won't care because you got a picture in front of the Magnolia sign. The strong sun can wreak havoc with your outdoor photos, but don't leave without snapping a pic under the #MilestoMagnolia sign and uploading it to Instagram. By Jaymi Naciri, Realtytimes.com
 Every human being makes up each morning thinking that they are the center of their own personal universe. Do you think that sounds cynical? Well let’s play through the following scenario. You are driving to work listening to the radio and suddenly you hear about an accident on the route you're taking to get to your destination. Is your first thought, “Oh my God, I hope those poor people are alright?” More likely your reaction is, “Now I’m going to be 30 minutes late for my first meeting!” That's because we all see life through our unique set of lenses in which we're the star of our own show. In order to build positive strategic relationships, we need to turn human nature on its head. Instead of thinking about what’s in it for me, great relationship managers focus their thoughts and efforts on what’s in it for the people with whom they work. It’s rare to come across people who don’t have their own personal agenda. Truth be told, we all do. However, great leaders and great relationship managers are willing and able to subjugate their personal agenda for the good of their teams and their stakeholders. Some people refer to this as "servant leadership." Early in my tenure, I told my teams that they didn’t work for me, but rather that I worked for them. Of course, I got the expected smirks and eye rolls when I uttered those words. But over time, many of them came to realize that I meant it. My goal was their success. My focus was on supporting their efforts. When we collaborate with our business colleagues and partners, are we thinking about our objectives or theirs? How many of us have made calls with sales executives who were clearly focused on selling their product or making their quota? How did that feel? And how did it feel on the rare occasions when you encountered a sales executive whose focus was on helping you solve a business problem? How different did that feel? True servant leaders focus on the needs of their clients, their team, their management and their shareholders. They look at life through the prism of helping others succeed. These leaders realize that all ships rise with the tide.  They also realize that it’s very rare for a player on a last-place team to win the MVP award in their sport. These awards are usually given to the players whose teams have won championships. Perhaps the greatest athlete of all time (certainly the greatest in my lifetime) is Michael Jordan. One of the most important things people always said about him was that he made everyone around him better. Are we focused on making others better and helping them succeed? Or are we focused on hitting our personal bonus metrics? Remember, the question we should ask in all personal engagements is not, "What's in it for me?" but "What’s in it for them?" By Larry Bonfante, CIOInsight.com
 1. Will I live there in 3 years? Renting has one advantage over buying - mobility. Otherwise you should be buying in most markets, but can you ask yourself if you'd want to be there 2 or 3 years from now. In some real estate markets the average person moves so often they think they may not want to be there. Still even with (Arizona's) unique growth and sprawl, the rent rates make it an almost given that you should be buying. 3 years is the number that basically helps a home buyer break even with appreciation helping cover the initial costs. 2. What's My Real Budget? If you've been renting it makes sense to buy, but a lot of buyers just see what they can get vs what they can afford. It's very common to see first time home buyers end up "house poor" where they can't afford to furnish the home. While quite possibly the worst way to buy all other items, using a monthly budget is ideal for real estate. It's good to work on this monthly budget before talking to a loan officer for a pre-approval. 3. Will I use more than the internet to shop Not shopping / interviewing is a (HUGE!!!) mistake that most buyers make (in fact, it is for most. According to an NAR Study, 85% of home buyers and sellers pick the very first agent they talk to). In addition, they often choose the first vendor they interact with, whether that's a real estate agent, attorney, inspector, the list goes on. It's so worth it to get good people. The same goes for picking a home. In addition, many home buyers use sites like Zillow that have one goal. Traffic. They convert this traffic into advertising dollars for real estate agents. It doesn't matter whether a home sold or that their Zestimate of is off by 20% or even if they are misrepresenting a listing. It's worth it to use an agent here. 4. More Money Question
As in "do I have enough money to pay for the cost of purchasing (closing costs, appraisals, inspections)... and do I have enough to actually furnish the home?" Going back to the house poor questions, but basically there is a cost to owning a home and there's a cost to decorating it. If you're thinking of buying a home you should consider these costs. That isn't to scare you but rather prepare you. If you can answer these questions confidently, then the only other question is where do you want to buy?  In an effort to reach out to homebuyers and owners juggling student loan and mortgage payments, Fannie Mae announced several new policies that ease some of the challenges these people face. There are three major changes that are expected to make obtaining a residential mortgage easier for borrowers with student debt. Three new rule changes The first is the student loan cash-out refinance. This allows borrowers to refinance a current mortgage to use the funds to pay down the remainder of their student loans. They could also potentially get a lower mortgage rate in the process. “44.2 million Americans are paying down student debt.” The second change applies to borrowers who have some debt that’s paid by others, such as a borrower whose parents pay down the monthly credit card, auto loan or student loan payments. Under the old rule, these balances would be included in a borrower’s debt-to-income ratio – a measure lenders look at as one way to determine the risk associated with a potential borrower. The new rules state that they can be excluded from the DTI calculation, as long as they meet two requirements:
According to Student Loan Hero, 44,2 million Americans are paying down student debt, and the typical graduate is leaving college with around $30,000 in debt; 1% of this amount would be $300. While the average monthly student loan payment is higher than this – $351 – the median monthly student loan payment is just $203. Many times, factoring in an amount that was different than borrowers’ actual loan payments artificially increased their DTI calculation and disqualified them from getting an affordable home loan with many lenders. Addressing a growing trend Fannie Mae announced these rules in response to an obstacle many prospective homebuyers have encountered in recent years. While there are many ways people can balance student loan debt and mortgage payments, it isn’t easy. The National Association of Realtors found that 13 percent of homebuyers in 2016 said saving for a down payment was the hardest part of the homebuying process. Nearly half of these respondents said it was student loans that held them back. “We understand the significant role that a monthly student loan payment plays in a potential home buyer’s consideration to take on a mortgage, and we want to be a part of the solution,” Jonathan Lawless, Fannie Mae’s vice president of customer solutions, explained in a statement. “These new policies provide three flexible payment solutions to future and current homeowners and, in turn, allow lenders to serve more borrowers.” While these new rules are designed to aid borrowers, there is always a risk associated with new programs such as these. Some worry that, by changing the DTI formula, lenders won't get an as accurate a picture of a borrower’s actual ability to pay down their mortgage, The Washington Post reported. In reality, these rules will likely be a wonderful help for some borrowers, but not quite the right solution for others. To determine whether any of them are a good option for you, reach out to Academy Mortgage. Information courtesy of Paige Diamond or Academy Mortgage.
 123rf.com Selling your home can be a stressful situation. It’s more about the unknown that bothers most sellers than actually moving and packing. One mystery that has to be addressed fairly early in the transaction is the home inspection. I equate the experience to being told that you are going to have a pop quiz that you weren’t prepared for. Well, the home inspection process can feel like that. You May Be Interested in the Article: Top 15 Must Know FHA Guidelines When Selling So, what do you do when you have a bad home inspection? First, it may look like a bad inspection, but is it really? Every home, new or old has something wrong with it. In 20 years of selling homes, I have never seen a clean home inspection, ever. What a Home Inspector Does: A home inspector must thoroughly go through your home to evaluate the major mechanical, structural, roof, interior and pest. He or she will also check in the attic, outbuilding(s) and electrical. As a result of the findings, the inspector usually categorizes the defects found in your home three ways. First is the maintenance items. Second on the list are minor repairs. Third are major defects found in the home which may affect health and safety. This report usually comes with photos and is broken down into sections. The last page will be the defective items list. Sometimes, inspectors will itemize and attach a value to the listed repairs, which I do not care for. Why, because this is a home inspector, not a licensed contractor. When I see an estimate for repairs, in my experience it seems like the repair values are not realistic and higher. Usually, you can find a local, reputable contractor who will do the job for less money than what the inspector quoted. What Do You Do When You Have a Bad Home Inspection: In most states, like Florida, if the buyer is requesting the seller to repair, replace or reduce the home value as a result of the home inspection, you (seller) are entitled to a full inspection report. If you have a copy of the report and it shows either a laundry list of repairs, some major, the first thing you should do is sit down with your agent and find out what the buyer wants. I have seen buyers take the property as is with all the known defects. Just because you have an inspection report showing all kinds of things wrong with your house doesn’t mean the buyer isn’t going to accept the property as is. However, if you are reading this, it is probably because the buyer either wants you to repair your home, give the buyer money in lieu of repairs or wants to terminate the contract with you. Remember, as the seller, you are not forced to do any repairs and the home inspection report should not be used as a list to make your house perfect. With that being said, like most sellers, you probably want to move on to the next step in your life and that includes selling your home. If you are considering doing some of the repairs, first make sure that they buyers are not out of contract for the home inspection and response. Your purchase agreement has a section that specifies how long the buyer has to conduct the inspection and make a response time. If the buyer has exceeded the time frame, they may have to take the property in as is or run the risk of losing their deposit. Repairs Can Be Negotiated-So Can Price: If the buyer is within the time frame of the home inspection period and is requesting repairs before you make a decision regarding repairs, have your Realtor contact the buyer’s Realtor to get a feel for what they buyer is willing to accept. This is when you want a strong, experienced agent to be on your side. Keep in mind how you priced your home to sell. If you priced your home below market value for a quick sale, then doing any requested repairs may not be in your best interest. However, if you sold your home at today’s current market value, then doing repairs may just be bringing your home up to current market standards in that price point. Deciding how to price your home, basically, sets the expectations for an as is sale vs a repaired value. If you sold your home below market value (wholesale price) the buyer may still try to negotiate repairs, you can always say no. Or, you could do the repairs and negotiate the price to reflect your investment. Major defects like an unknown septic problem that requires an entirely new septic system may be a repair that requires the price to be raised. For example, a septic system once installed lasts for years and will be enjoyed by the new home owners and therefore may be a repair that can be split between the buyer and seller by adjusting the price accordingly. Mortgage Types May Determine Repairs: What kind of mortgage the buyer is using will also determine what and if the repairs the buyer is requesting need to be completed by you. Most mortgages have an appraisal contingency, which means the funding of the loan is contingent upon your home meeting the appraisal standards as well as value. If the appraiser requires repairs, and you are unwilling to do them, the buyer may not be able to move forward with the purchase of your home. For instance, FHA and VA mortgages have a set of requirements the home must meet in order for the financing to be completed. If your home, for instance, has rotting exterior wood or chipped and peeling paint (and was built prior to 1978), those issues must be addressed by you prior to closing. Although the appraisal normally is scheduled after the home inspection period has passed, the buyer’s mortgage lender can provide some help regarding what is acceptable for underwriting standards. Guideline for Repairs Requested by Buyers Breakdown the Repairs
 123rf.com If you Just Say No: You Must Disclose: Depending upon the inspection clause in your purchase agreement, saying no to the buyer may allow the buyer to withdraw from the contract. Even if the buyer accepts your home with no repairs, your home may fail the appraisal. As a result, the buyer will not be able to complete the transaction due to the lack of funding. Either way, if the purchase does not come to fruition and you put your home back on the market, you must disclose the known defects if you decided not to repair them. Licensed Agents Must Disclose Defects: Most States have requirements for licensed agents engaged in selling real estate when it comes to known property defects. For instance, in Florida, if a licensed agent is aware of any known defects whether found in the home inspection or disclosed by the homeowner, they are required to disclose those issues. A seasoned agent will more than likely have some type of disclosure signed by the buyer and seller specifically addressing the known issues to protect all parties. Regardless of loyalty or agency agreement, telling the truth overrules any fiduciary responsibilities when it comes to defect disclosures. Selling your home can be a complex transaction. Knowing how to treat the outcome of a home inspection while responding to the buyer's requests can mean the difference between closing or putting your home back up for sale. Have a strategy and put your ego aside. If your goal is to sell the house, a little compromise can go a long way. By Sandy Williams, RealtyTimes.com
Springtime is always a pivotal time for the housing sector as it accounts for an out-sized portion of sales activity. Sellers don’t want prospective buyers tramping snow and mud through their homes in the winter, and buyers often don’t want to actually move until the kids are out of school – but do want to be settled before the new school year starts. Existing home sales hit a post-recession high in the month of March despite very tight availability (just 3.8 months’ supply versus a normal 6.0 months). Tight supply and strong demand of course is the recipe for higher prices and the median price for an existing home, at $236,400, was 7% above year-ago levels in the first quarter.  123rf.com The upper price points of the market also enjoy better availability. Homes in the $100k to $250k segment accounted for the bulk of March sales (42.5% of total) but were only 5% higher versus year-ago sales. Homes in the $250k to $500k range were 19% higher yr./yr. while sales $500k and above were up 29% higher. All data is sourced from the National Association of Realtors. By: Ameriprise Financial Senior Economist, Russell Price, CFA.
 Even though they’re becoming more optimistic about their financial situations, more people who rent their homes are foregoing buying a house. One in five renters now say they have no interest in ever owning a home, up from 13% in January 2016, according to a report released this week by Freddie Mac. And nearly 60% of current renters expect to rent their next property when they make their next move, up from 55% in September. This shift toward renting versus buying is occurring despite a relative improvement in the financial situations for many renters: 41% of them say they have enough funds to go beyond each payday, as opposed to living paycheck to paycheck or not having enough money for basic necessities, the highest level since October 2015, Freddie Mac found. Harris Poll surveyed more than 4,000 adults on Freddie Mac’s behalf, of which 1,282 were renters, to help produce the report.  And yet a sizable chunk of people are unhappy with renting. Nearly 40% of people Freddie Mac surveyed were dissatisfied to some extent with their rental experience, with young and urban renters — who are likely to be living in smaller, more expensive spaces — more likely to be displeased.
So why are they not buying? People’s attitudes toward affordability, which cut across generations, is a big factor. “Although their finances are better, renters are comfortable with continuing to rent with many believing renting will be more affordable or stay the same for them in the next 12 months,” Freddie Mac noted. In particular, rising home values have hurt many would-be homebuyers. A recent report from real-estate website Zillow found that more than two-thirds of renters cite the down payment as the biggest obstacle in home a home. Indeed, it can take more than a typical year’s salary in some markets to be able to afford one. At the same time, rental markets have stabilized recently. “Rents have been relatively flat over the last year and we don’t expect them to rise much in the next year in most areas,” Svenja Gudell, chief economist at Zillow, said. “That urgency that once existed is not there anymore.” Affordability is just one factor though — the availability of homes also plays a role. “Even if you were to go out and try to buy a home, inventory is so constrained you’ll have trouble to find one,” Gudell said. “If there’s not much advantage to owning a home versus renting, people will feel comfortable in the decision to continue to rent.” |
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