BLOG

When you list your home, the hope is that it will sell quickly and profitably. But that isn’t always the case, and in some situations, your home may linger on the market to the point that your listing contract expires. But if that happens, what does that mean for you, your agent, and your home sale? A recent article from realtor.com explored some things sellers should know about expired home listings, including: What does it mean when your listing expires? When you list a home, you sign a contract with a listing agent, and that contract must include an expiration date, which is typically between 3 and 6 months of the initial listing. If that date comes and you haven’t sold your home, your agent no longer officially represents you and your listing will no longer be actively marketed by them. If your home was listed on the local multiple listing service (MLS), it will be removed from there, along with many other real estate marketing platforms. What if you sell right after your contract expires? Some contracts have a “commission protection period” clause, which means that if you sell shortly after the contract expires, your real estate agent will still receive a commission. Make sure to review your agent contract to see if this clause applies to you, and how long of a timeframe it covers.  What do you do when your listing expires? When your listing expires, you have some things to consider. For example, do you want to continue to list your home, or do you want to pull it from the market? If you decide to create a new listing on the MLS, do you want to change up some things—like tackle some renovations or lower the price of the home—to increase the chance of selling? Do you want to continue working with your listing agent, or do you want to try someone new? Asking yourself these questions will help you figure out the next best steps for your home sale. © JVDreamHomes2024

If you’re thinking about downsizing, you may be hearing about 55+ communities and wondering if they’d be a good fit for you. Here’s some information that could help you make your decision. What Is a 55+ Community? It’s important to note that these communities aren’t just for people who need extra support – they can be pretty vibrant, too. Many people who are downsizing opt for this type of home because they’re looking to be surrounded by people in a similar season of life. U.S. News explains: “The terms ‘55-plus community,’ ‘active adult community,’ ‘lifestyle communities’ and ‘planned communities’ refer to a setting that caters to the needs and preferences of adults over the age of 55. These communities are designed for seniors who are able to care for themselves but may be looking to downsize to a community with others their same age and with similar interests.” Why It’s Worth Considering This Type of Home If that sounds like something that may interest you, here’s one thing to consider. You may find you’ve got a growing list of options if you look at this type of community. According to 55places.com , the number of listings tailored for homebuyers in this age group has increased by over 50% compared to last year. And a bigger pool of options could make your move much less stressful because it’s easier to find something that’s specifically designed to meet your needs. Other Benefits of 55+ Communities On top of that, there are other benefits to seeking out this type of home. An article from 55places.com , highlights just a few: Lower-Maintenance Living: Tired of mowing the lawn or pulling weeds? Many of these communities take care of this for you. So, you can spend more time doing fun things, and less time on maintenance. On-Site Amenities: Some feature lifestyle amenities like a clubhouse, fitness center, and more, so it’s easy to stay active. Plus, others offer media rooms, libraries, spas, arts and craft studios, and more. Like-Minded Neighbors: Additionally, these types of homes usually offer clubs, outings, meet-ups, and more to foster a close-knit community. Accessible Floor Plans: Not to mention, many have first-floor living options, ample storage spaces, and modern floor plans so you can have a home tailored to this phase in your life. Bottom Line If this sounds appealing to you, reach out to a local real estate agent. They’ll be able to walk you through what’s available in your area and the unique amenities for each community. You may find a 55+ home is exactly what you’ve been searching for. © JVDreamHomes2024

Looking ahead to 2025, it’s important to know what experts are projecting for the housing market. And whether you’re thinking of buying or selling a home next year, having a clear picture of what they’re calling for can help you make the best possible decision for your homeownership plans. Here’s an early look at the most recent projections on mortgage rates , home sales, and prices for 2025. Mortgage Rates Are Projected To Come Down Slightly Mortgage rates play a significant role in the housing market. The forecasts for 2025 from Fannie Mae , the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo show an expected gradual decline in mortgage rates over the course of the next year ( see chart below ):

If you’ve been thinking about shrinking your square footage and moving into a smaller home, you’re probably well-aware of the obvious advantages: There’s less to clean, heat, and cool, which means a savings of time and money. But that’s only the beginning. Downsizing offers several other, less-talked-about benefits that make scaling back very appealing. Take a look at some of the big things you stand to gain by going smaller. 1. Enjoy that equity—you’ve earned it When you sell a home you’ve owned for years, possibly even decades, chances are you’ll have built up quite a bit of equity as you’ve paid your mortgage month after month. There’s a good chance that whatever smaller home you buy will cost less than the bigger one you sell. So, you may want to consider taking the left-over cash and fulfill a lifelong dream. Maybe you’ve longed to travel the world? Perhaps you’d like to retire early, or cut back to part-time employment? Having extra funds from the sale of your home allows you to consider these options. You can also put your mind at ease by paying off debt. If you have outstanding credit card balances or auto loans, save on interest by eliminating these burdens. A sudden influx of cash enables you to boost your savings. If you don’t have any immediate needs or desires, bank this money for later use. Add to your nest egg by contributing to your IRA, or have more money taken out of your paycheck and put into your retirement plan. 2. Savor newfound time Owning a smaller home typically means you’ll spend less time maintaining the interior. But don’t forget about the hours you’ll save on outdoor work if you minimize your acreage. Should you choose to live in a condo or apartment, all that (often back-breaking) exterior work is handled by a maintenance team. Watch and enjoy as your weekly to-do list shrinks in your new slimmed-down setting. 3. This is your chance to make a fresh start If you’d like to change your lifestyle completely, downsizing is the perfect time to make a fresh start. Embrace the cultural opportunities and mass transit convenience of a big city by finding an urban area that keeps you busy. Or, put down roots in the countryside and enjoy the scenery and sounds of nature. Whether you’ve wished for a warmer climate, or wanted to move to an area that allows you more time to devote to a hobby like fishing or sailing, this is your chance. Or, if you opt to stay in the same locale, you can always redecorate to give your new home a fresh feel. Because there’s less area to remodel, giving these spaces a makeover should be more affordable than if you’d tackled a renovation in your former home. 4. Enjoy more togetherness When you’re not separated by multiple levels and extra space, you’ll find yourself spending a lot more time with family. If you’ve grown tired of yelling upstairs or down to find your partner, pet, or child, moving into a smaller home may offer the togetherness you’ve been missing. 5. Feel better about your carbon footprint Because you’re in a smaller dwelling, most likely you’re using fewer resources such as electricity, heat, air conditioning, and even water for the lawn.  If you’re in a walkable area, you can also save on gas and feel good about decreasing pollution while keeping more cash in your wallet. So, if you’ve had downsizing on your mind, don’t forget to consider these additional benefits. It may do more for you and your lifestyle than you had even thought it would! © JVDreamHomes2024

You don’t even need to have a child going to college to know that it costs a ton of money! But when you do have a student about to enter college or already there, you become extremely aware of how much it costs. For those who aren’t quite there yet, when you hear how much tuition is, that number often doesn’t include room and board. So on top of what the classes cost per year, you need to include housing, which can be a hefty amount. According to this recent article published by Education Data Initiative, the average room and board cost can range anywhere between a low of around $8,000 to a high of just over $14,000 per year. The average cost varies depending on whether it’s a private or public school, and whether it’s a 2-year or 4-year institution: A 2-year public school averages $8,360. A 4-year public school averages $12,640. A 2-year private school averages $11,380. A 4 year-private school averages $14,410. But those are averages, so the actual cost may be higher or lower depending upon the school your child attends, and the type of accommodations they choose. (For example, the fee for a single-occupancy room will likely cost more than living in a dorm room or suite that is shared by multiple students.) Regardless, no matter where a student goes to college, or what their living arrangements are, a significant amount of money will be spent on their housing. This is why it makes sense for some parents to buy an investment property for their child to live in while in college, according to this recent realtor.com article. But does it make sense? Let’s rephrase that… does it make sense for you? There’s no absolute answer to whether or not it makes sense to buy an investment property for your child to live while at college. It certainly might be a wise decision for some parents and students, but it depends upon many factors. Here are some questions to ask yourself if it’s something you’re considering: Will your child be allowed to live off campus? Some colleges and universities require students to live on campus, or at least for a period of time. So even if your child is only required to live on campus for their freshman year, you’d only be looking at three years of benefiting from the investment property as a place for them to live. Does the math make sense? Would buying a place actually be more cost-effective than paying for a dorm? Depending on the real estate market in the area, the cost of buying a place—or even just paying the property taxes—may be more than it would cost to pay for a dorm room. Is it worth having to pay for repairs and maintenance? It’s almost impossible to put an exact number on, but don’t forget to factor in some costs for emergencies and upkeep each year. Is your child responsible enough to handle living in their own place and being in charge of it? It can be a great growing and learning experience for a child to live in their own place and be responsible for the day-to-day upkeep. But it can also be overwhelming (or at least distracting) for a student who isn’t quite ready for that kind of responsibility and impacts their ability to focus on their studies. Are you counting on other students to also pay rent? One way many people justify the cost of buying a place is that they’re able to defray the cost by having other students pay rent to live there as well. If that’s your plan, try to make sure you have some other students your child feels comfortable living with who are committed to renting there, and have them sign a lease. It’s easy for a student to say they want to live there, but it’s easy for them to back out, or have their parents not agree to the arrangement. If you’re counting on tenants that don’t pan out, you could end up paying more than you would for a dorm room. Are you prepared for the potential risks and liability? Not to say that your child is a party animal, but if you’re being completely honest with yourself, you probably know that any place you buy might be the site of a keg party or two. Unfortunately, parties can lead to problems and potential legal issues. Or, will your child miss out on the social scene? On the other hand, living off campus may mean your child is left out of the loop and binds that are created when students live together in a dorm, especially if they start living off-campus in their first year. Of course, your child may prefer that if they’re not a social butterfly… What if your student decides to transfer? Many students end up transferring to another school after a year or two. What would you do if your child left the area? Keep it and rent it out, or sell it? Will it appreciate enough over the course of their time at school to offset the closing costs, carrying costs, and selling costs if you decide to sell it? It’s impossible to predict how much (or if) a house will appreciate during a period of time. Keep in mind that you may not make a profit after four years of college. Will it be easy to sell when your child graduates or transfers? It’s also impossible to predict how long it will take to sell a house when you want to, but if there typically aren’t a lot of buyers in the area you’re considering, be aware that it might take some time to sell when you decide to. If it can’t be sold readily, be prepared to hold onto it as a rental, and have a plan for who will manage and maintain it at that point, once your child has moved out of the area. Those questions aren’t meant to scare you away from buying an investment property for your child to live in while at college, they’re meant to help make sure you make a well-informed decision. If you feel like it’s the right decision for you and your child, reach out to your local real estate agent and ask them to recommend the best investment-savvy agent they can find in the area of your child’s school to help you make the best purchase possible! The Takeaway: College is expensive, and tuition doesn’t usually include room and board, which adds significantly to the cost. The average annual room and board costs can range from $8,000 to $14,000, depending on the type of school and whether it’s public or private. Given these costs, some parents consider buying an investment property for their child to live in during college. However, whether this makes sense depends on several factors: campus housing policies, cost comparisons between dorms and buying a property, maintenance responsibilities, the child’s readiness to manage a property, reliance on rental income from other students, potential legal liabilities, social impacts on the child, and the property’s future value and ease of sale. These considerations are important to ensure a well-informed decision. If it seems like the right choice for you and your child, ask your local real estate agent to recommend the best investment-savvy agent they can find in the area of your child’s school to help you make the best purchase possible. © JVDreamHomes2024

Buying a home can be a complex process, especially when it comes to getting a mortgage, and because it’s so complex, many people make mistakes along the way. But messing up your mortgage can cost you in a major way, and could even put your home purchase in jeopardy. So, the question is, what are the common mistakes people make when getting a mortgage, and how can you avoid them when buying your home? A recent article from realtor.com outlined different mistakes home buyers make when getting a mortgage, including: Waiting to buy a home until they have a 20 percent down payment. Having a 20 percent down payment (or more) is certainly ideal when buying a home, as it allows you to avoid paying private mortgage insurance (PMI). But it’s not an absolute must, and sometimes, if you wait to make a move until you hit the 20 percent savings mark, you run the risk of interest rates rising in the future, which can end up increasing the costs over the life of your loan even more than paying PMI would have. Instead, talk to your lender to see what your options are, and assess if it makes sense for you to buy with your current savings and lock in a lower interest rate. Meeting with only one lender. If you only meet with one mortgage lender — which, according to the article, is about 50 percent of all homebuyers in the US — you could be missing out on potential savings. Different lenders offer different interest rates, and if you only speak to one lender, you don’t know if you’d be able to get a more competitive rate elsewhere. To ensure you’re getting the best possible deal on your mortgage, aim to talk to three lenders; then, you can compare their offers (including interest rates and loan fees) to determine which is the best option for you. Changing jobs. If you’re considering applying for a mortgage, it’s best to wait until after you’ve closed on your new home. Lenders typically want to see at least two years of consistent employment and income history, and changing jobs right before or during the lending process could put your ability to secure a mortgage at risk. If it’s at all possible, wait until after you’ve successfully purchased a home to switch jobs. © JVDreamHomes2024

You’ve probably heard all sorts of things in the news regarding the recently proposed settlement that the National Association of Realtors announced regarding a court case over how real estate commissions are paid. Unfortunately, many of the things you’ve heard probably aren’t completely (or even remotely) true, because they’re coming from people outside the industry, who don’t truly understand it themselves. Here’s a breakdown of 9 misconceptions about the real estate settlement, to help you separate fact from fiction: 1) The Settlement Broke Up a “Cartel” There are millions of agents in the industry, and we’re all competing against each other in our local markets, even when we work at the same company and office. Our brokers and managers legally can’t even tell us what time to work each day, or how to do our work, because we’re almost all independent contractors, let alone how much to charge for our services. Beyond that, it’s hard enough to get agents to agree on whether or not open houses are worthwhile! Agents are fiercely independent, and most of us have our own (very strong) opinions on how to run our business. So there’s no chance the entire industry was in cahoots to inflate commissions. 2) 6% Was the “Standard” Commission Another thing you’d probably find difficult is getting an agent to even say the word “standard” to describe anything regarding real estate. One of the first things agents are taught when we enter the business is that there is no “standard” commission, and we’re told to not even discuss commission rates at all with other agents. You should see how quickly agents pounce on any agent who even says the word “percent” in an online forum. Most agents want nothing to do with any discussion that even hints at the topic. Beyond that, the average real estate commission fluctuates from year to year, and hasn’t even been as high as 6% since 1992, according to Statista ! Yet, 32 years later, people somehow think that’s a rate the industry has been working together to maintain. Who is creating that perception, and why?! 3) This Is the First Time Real Estate Commissions Have Ever Been Negotiable Many headlines, and even President Biden , claim that this is the first time in history that real estate agents have agreed that people can negotiate lower commissions when they buy or sell a home. Just refer back to #2 above and it’s obvious that people have been negotiating different commission rates for many years, otherwise, commission rates would be the same across the board from year to year. 4) Sellers Never Had a Say in How Much Buyers’ Agents Were Offered Technically, a seller agrees to pay their listing agent a certain amount. Part of that agreement sets forth how much of that amount the listing agent will agree to offer to a buyers’ agent who brings a qualified buyer if they end up buying the house. As mentioned above, the amount the seller agrees to pay their listing agent has been negotiable, which includes having been able to negotiate how much goes to the buyers’ agent. 5) Sellers Will No Longer Be Allowed to Offer Buyers’ Agents a Commission While the settlement proposes any offer of buyer agent compensation won’t be allowed to be displayed on an association-owned multiple listing system (MLS), sellers are certainly allowed to offer buyers’ agents a commission and have their agent make it known through other platforms and marketing materials. 6) Anyone Who Sold a Home Before Is Entitled to Money From the Settlement (And Lots of It!) In order to receive any money from the settlement, you have to be part of the class action. But even if you are, don’t expect a huge payday. As is often the case, the ones who will have a substantial payday are the lawyers, while the home sellers each receive a small amount of compensation, which is yet to be determined. 7) Real Estate Agents Have to Charge Less Now Nothing in the settlement says that an agent has to charge less for their services. Just as nobody could tell an agent they had to charge 6% before, nobody can tell an agent they’re not allowed to set their fees at whatever they like moving forward — whether they choose to lower, or raise their rates, or the array of services they offer at any particular rate. 8) Home Prices Will Come down Substantially and Make Them More Affordable Now Real estate market values are determined by supply and demand. Sellers can only sell their house for as much as a buyer is ready, willing, and able to pay for it at any given moment in time. While commissions are often an expense within the sales price of a home, they do not impact how much buyers in the market are willing to pay for a home. 9) The Settlement Is Good News for Buyers Because They Can Avoid Working With an Agent and Save Money This really depends upon who the buyer is… Some buyers might feel like this is a win in that they can now opt to *not* have a buyers’ agent represent them, and avoid having the cost of a buyers’ agent in the purchase. But it probably won’t be that straightforward. First, sellers aren’t necessarily going to agree to accept a lower price than the market will bear, just because you don’t have an agent. Beyond that, buyers who try to go through the process without an agent may find it difficult to navigate the process on their own or get the best results. For those who want to work with a buyers’ agent, the settlement will require them to sign an agreement for representation, agree upon how much compensation their agent will receive, and possibly pay for the services of their own agent directly. However, the compensation may very well be offered by many sellers anyway, and even if it’s not, it’s possible to negotiate it into the purchase price. © JVDreamHomes2024

Are you ready to make your dream of homeownership a reality? If so, you'll want to explore the fantastic option of Temporary Buy Down, which can offer you significant benefits during the initial stages of your mortgage. What is a Temporary Buy Down? It's a fantastic way to lower your initial mortgage payments, whether buying or selling a home. There are two types: seller/borrower paid and lender paid. Seller/borrower paid involves setting aside funds to lower payments for a set period. This can be a great incentive for buyers, as it lowers their monthly payments and can even be rolled into the price of the home. Plus, it helps sellers without reducing the home's sale price. On the other hand, lender paid involves the lender covering the buy down fee. While this may result in a slightly higher long-term rate, it offers a lower start rate during the buy down period, making it attractive when interest rates decrease. What are the benefits? Here's a quick rundown: Lower initial mortgage rates, allowing you to have a lower monthly payment Improve cash flow during the buy down period Save money in a declining rate environment Great for when interest rates are high If you have questions or want to learn more about how Temporary Buy Down can work for you, please to reach out anytime. I'm here to help you! © JVDreamHomes2024

A home is a big purchase. Because it’s such a big purchase, it can take a long time to pay it off, oftentimes as long as 30 years. But it doesn’t have to take that long! You can pay off your mortgage in a shorter time frame if you use the right strategies. A recent article from realtor.com outlined strategies homeowners can use to pay off their mortgages quickly — without going broke in the process — including: Make one extra payment per year. It may seem like making a single extra mortgage payment per year wouldn’t make much of a difference, but those single payments add up. Making one extra payment per year can help you knock about four years off of a 30-year mortgage. Pad each monthly payment. Another strategy that can knock some time off your mortgage is to add a bit extra to your payment each month. For example, let’s say you have a $200,000 30-year fixed-rate mortgage with an interest rate of 4 percent. Over the course of that loan, you’d pay more than $143,000 in interest. However, adding $100 to your monthly payment would allow you to pay off the loan about five years sooner—and save almost $27,000 in interest in the process. Refinance to a shorter-term loan. If you bought your home when interest rates were higher than they are today, then refinancing to a shorter-term loan (like a 10 or 15-year fixed-rate mortgage) can not only help you pay off your home faster, but also save a significant amount of interest in the process. Just keep in mind that your monthly payments will likely increase because you’re shortening the length of time to pay off the balance, and you’ll also have to pay closing costs when you refinance. Before you refinance, talk to a lender to make sure that the pros outweigh the cons. © JVDreamHomes2024