Replacing Your Windows

Replacing your windows can be an expensive prospect, but there also may be hidden costs to not replacing them. Several signs can point to window replacement as the best solution for a variety of household problems. If you’ve experienced any of these problems, you may want to consider whether your windows are the cause.

Heating or Cooling Is Expensive

Your money could be flying out the window every winter and summer. Take a look at your heating bills in the winter to determine whether you’re spending too much. You also may find a correlation with your air conditioning needs in the summer. Older windows are not designed to keep up with the demands of modern heating and cooling. New energy-efficient windows may be expensive, but you’ll easily make up the difference quickly in energy costs.

Windows Get Stuck

Do you struggle to open your windows? If they are hard to open or get stuck easily, this could also signify they need to be replaced. If you need to use something to prop open your windows so they don’t slide down and break, that’s also a home security issue.

Storms Cause Damage

Big storms can affect a lot of things on your home, including roofing and siding. Windows are not immune from natural disasters, either. After a major storm, inspect windows along with your roof. Overlooking this problem could lead to bigger issues.

Water Gets Inside

Do you have water coming into your home from an unknown the source? Your windows could be the entry point. Older homes often have wood rot around the windows that is not identified in a home inspection. If water is getting inside, you could have much bigger issues like mold. Check this as quickly as possible to prevent any major problems.

Noise Is Too Loud

If you live on a quiet, bucolic street, you are one of the few lucky ones. Not everyone has a silent neighborhood. Cars, people, alarms, and worse can interrupt your sleep. The quality of your windows could contribute to this level of noise. Newer windows are designed to block out more noise and could help you get more rest and serenity inside your home.

Time for a Change

You may not be facing any of these problems, yet you may still want to replace your windows. Perhaps you just don’t like what you have. You can replace your windows to create a uniform style or add a distinctive feature that appeals to you. When you do replace your windows, you will get all the added benefits of energy-efficient windows, which is well worth the investment.

The 2020 Real Estate Market: What You Need to Know

I received the information below about what the 2020 real estate market might look like and why according to real estate expert, Joe Sesso, reporting about what other real estate experts believe.  It came to me by email from my real estate company, Long & Foster Real Estate, via RISMedia, both of which keep us realtors informed on a regular basis.  I thought it was good information and decided to share it with you.  

By Joe Sesso, National Speaker and Author for Homes.com:

While it's most important to know what's happening in your area, it's also a good idea to have a general overview. In the most recent Secrets of Top Selling Agents webinar, Steve Harney shares what experts are saying about this year's real estate market in "2020 Market Predictions for Real Estate."

After being in the industry for over 25 years, Harney is a residential real estate expert who specializes in market trends. He started as an agent and then developed his own 500-agent real estate firm.

Currently, Harney works with producers to help them achieve success. He is often quoted in major news sources and is recognized as one of the most accurate market trends predictors today.

What does the market look like?

The housing market is a solid foundation for the U.S. economy going into 2020. In addition to this, home sales are projected to increase substantially in the coming year. This can be seen in the recent report from Time which showed an increase in buyer traffic, increasing by 12.6 percent nationwide. If you're in the West, you probably saw a good year, with activity jumping 23.1 percent.

When thinking about when to make your next push in the industry, do not to wait until spring when most of the competition will also be out. Instead, he recommends starting now, since buyers are already flooding the market.

What is influencing these changes?

According to Freddie Mac, mortgage rates should remain low throughout 2020 and 2021, averaging around 3.8 percent. Fannie Mae, the Mortgage Bankers Association and the National Association of REALTORS® all also believe rates will remain under 4 percent through 2020. This means the market won't be facing any resistance like what was seen at the end of 2018 when rates increased. Harney refers to this as a "perfect buying environment."

Because there will be a greater influx of buyers and higher demand for homes, CoreLogic predicts that home prices will rise at least 5 percent over the year. Similarly, home value is expected to continue to appreciate. This is due to an inventory shortage and a high demand from buyers. In fact, in 2019, housing inventory dropped overall by 12 percent, while homes available for less than $200,000 dropped by 18 percent. This poses a challenge, especially since millennials and Generation X buyers are flooding the market, looking for low-cost homes. Harney says the best way to avoid issues with this is by listing properties as soon as they become available, especially if they're in the lower price range.

Will there be a recession?

A recession is defined as a temporary economic decline during which trade and industrial activity decrease. While some experts expect a recession during 2020, others do not.  It's important to keep in mind that a recession does not mean a housing crisis. In fact, a housing slowdown is one of the bottom five possible triggers of a recession.

Will home sales would be affected by the 2020 election? Harney explained that, yes, there may be a slight decrease in home sales during that time. However, it's not due to a lack of buyers. Instead, it's because people are distracted by the election and put off buying. As a result of this, generally, home sales the following year are expected to significantly increase.

Hot Design Ideas for Your Home

We all want a little luxury in our lives, and staying up-to-date on current design trends is just one way to incorporate a bit of style into everyday décor. Whether you're just looking for a few new pieces to spice up your living room or you're ready to revamp the entire master bath, taking a few design cues from luxury real estate can be a great way to stay current and fresh.

Rather than sifting through countless magazines to stay abreast of these trends, check out our list of some of the biggest trends in recent years. 

Bringing Nature Inside: Elements from nature elevate home décor. Invite green plants into the house in all shapes and sizes. Lush ferns and delicate succulents create a sense of calm. Look to natural fibers for accent pieces, such as sisal and wool and organic shapes found in tree bark or rough-cut stone.

Brass Accents: Aged brass accents are popular for creating that vintage-inspired look. Add burnished bronze and brass pieces for a bold statement.

Mix and Match Metals: Don't be afraid to clash. Brass paired with silver and copper have been spotted in upcoming design trends. Metallic shades will add a retro flair to an otherwise dull room.

Stealth Electronics: Nothing feels more luxurious than the total integration of your home in the palm of your hand. Control your lighting, entertainment system and environmental controls, even your garage door, with just your phone. Integrate your security system as well. Several options are available that allow you to access strategically placed cameras in any room in the house.

Electronic Entry: Never get locked out again. Electronic integration continues to customize the residential market. Smart locks feature unique identification codes in a sleek touchpad. Available in many fine finishes, smart locks also boast high-end craftsmanship.

The Rustic Farmhouse: Farmhouse kitchens blend rural charm with modern design. Merging rustic touches with contemporary utility is on the rise in home renovation trends. Pair a farm-style tub sink with stainless steel appliances in an open floor plan to achieve this balanced style.

Library Retreats: Complete your luxury upgrade with your own literary sanctuary.  Advance your home office into a tranquil library to accommodate your interests. Unplug from modern life and sink into a relaxed pace, surrounded by priceless pieces of literature and culture.

Luxury incorporates sophistication and technology with natural and timeworn accents. 

Cost vs. Value: 2020 Home Improvement Projects With the Highest ROI

I often have people ask me about what home improvements bring the greatest return on investment.  Today I  received an email from RISMedia's Housecall with the article below by Jameson Doris in it , and I thought you might be interested in it, too.   It's a 2020 report on home improvement projects with the highest return on investment (ROI) from a newly released Cost vs. Value report. 

Curb appeal really does have a major impact on the return you'll see at resale. Among the top 10 home improvement projects with the highest return on investment (ROI) in Remodeling magazine's newly-released Cost vs. Value Report, nine are outdoor projects.

Topping this year's list is Manufactured Stone Veneer, a project that has consistently ranked toward the top of the list since the project was added to the report in 2015.

Unsurprisingly, the report shows an increase in cost for all 22 projects listed; however, there is also a consistent dip across the board in terms of what the perceived value of each of these projects is. This is likely due to a market that was anything but smooth in 2019.

"Why the difference? The most likely answer is consumer jitters," says Clay DeKorne, chief editor of the JLC Group, which includes Remodeling magazine. "While remodeling professionals need to stay on point, they can breathe easy. Remodeling activity is growing at a slower rate than in years past, but it continues to grow."

Nationally, here are the 10 projects with the greatest ROI, according to the 2020 Cost vs. Value Report:

Manufactured Stone Veneer (95.6% ROI)

• Average Cost: $9,357
• Average Resale Value: $8,943

Garage Door Replacement (94.5% ROI)

• Average Cost: $3,695
• Average Resale Value: $3,491

Minor Kitchen Remodel (Midrange) (77.6% ROI)

• Average Cost: $23,452
• Average Resale Value: $18,206

Siding Replacement (Fiber-Cement) (77.6% ROI)

• Average Cost: $17,008
• Average Resale Value: $13,195

Siding Replacement (Vinyl) (74.7% ROI)

• Average Cost: $14,359
• Average Resale Value: $10,731

Window Replacement (Vinyl) (72.3% ROI)

• Average Cost: $17,641
• Average Resale Value: $12,761

Deck Addition (Wood) (72.1% ROI)

• Average Cost: $14,360
• Average Resale Value: $10,355

Window Replacement (Wood) (68.9% ROI)

• Average Cost: $21,495
• Average Resale Value: $14,804

Entry Door Replacement (Steel) (68.8% ROI)

• Average Cost: $1,881
• Average Resale Value: $1,294

Deck Addition (Composite) (66.8% ROI)

• Average Cost: $19,856
• Average Resale Value: $13,257

Nationally—and on the other end of the spectrum—here are the 10 projects with the lowest ROI:

Master Suite Addition (Upscale) (51.6% ROI)

• Average Cost: $282,062
• Average Resale Value: $145,486

 Grand Entrance (Fiberglass) (53.3% ROI)

• Average Cost: $9,254
• Average Resale Value: $4,930

Major Kitchen Remodel (Upscale) (53.9% ROI)

• Average Cost: $135,547
• Average Resale Value: $72,993

Bathroom Addition (Mid-range) (54% ROI)

• Average Cost: $49,598
• Average Resale Value: $26,807

Bathroom Addition (Upscale) (54.7% ROI)

• Average Cost: $91,287
• Average Resale Value: $49,961

Bath Remodel (Upscale) (56.6% ROI)

• Average Cost: $67,106
• Average Resale Value: $37,995

 Master Suite Addition (Midrange) (58.5% ROI)

• Average Cost: $136,739
• Average Resale Value: $80,029

Major Kitchen Remodel (Midrange) (58.6% ROI)

• Average Cost: $68,490
• Average Resale Value: $40,127

Roofing Replacement (Metal) (61.2% ROI)

• Average Cost: $40,318
• Average Resale Value: $24,682

Bathroom Remodel (Universal Design) (62% ROI)

• Average Cost: $34,643
• Average Resale Value: $21,463

The 2020 Cost vs. Value Report compared the average costs for 22 popular remodeling projects and how much of that value they retained in 101 different U.S. housing markets. View the full report, including project descriptions and city-level data, here.I received an email with this article in it and thought you might be interested in it, too.   

What is "Subject-to" Real Estate?

If you've heard people talk about "subject-to" real estate, you might be curious what that means and if it would be a good investment for you. Briefly, "subject-to" real estate means you're buying the property, but the loan on that property stays in the name of the existing seller.  You're making your purchase "subject-to" the existing mortgage or lien.

Image by Ricarda Mölck from Pixabay

Why Would Someone Buy Real Estate This Way?

When you buy a "subject-to" property, you don't have to get a mortgage in your own name. That can be perfect for people who don't want to tie up their credit or funds.  It also works well for those who might not be able to qualify for an existing mortgage.  Since you're not putting your name on anything that involves the mortgage, you're free and clear from that standpoint. But you'll own the house, and you'll make the mortgage payments.

Is This a Good Wealth-Building Tool?

This can be a great tool to build wealth when it's used correctly. It's very important that you continue making the seller's mortgage payments on time, and that you get everything in writing. But since you don't have to qualify for a mortgage yourself, you can choose great properties that people really want to sell. Often, this is because the owner is in foreclosure. By buying the property "subject-to", the owner doesn't have to go through foreclosure proceedings and have that on their credit report.

How Much Risk is Involved in This?

As with any type of investment, there is always risk. The biggest concern is that the seller of the property will file for bankruptcy. When that happens, the house could be included in that filing and would be foreclosed upon by the lender. You could lose your investment, since you aren't the one who has the property's mortgage in your name. Another risk is the due-on-sale clause in the seller's mortgage. Almost all mortgages have these, but they're often not enforced. Still, if the lender wanted to enforce that clause, they could demand that the entire mortgage be paid if the deed transfers into your name.

How Many "Subject-to" Properties Can Someone Own?

Theoretically, there's no limit to the number of "subject-to" properties that you could own. As long as you can make the payments, you can keep buying these properties. You don't need any credit to get started, and you won't really need much cash, either. You'll simply have to be willing to take a little bit of risk to build up your real estate portfolio. With that in mind, though, it's not a bad idea to have an attorney help you, at least right at first, to be sure you're protecting yourself and the seller as much as possible.

Prepping Your Home for Sale

s you prepare to put your home on the market, consider prioritizing the tasks that will make your house sale-ready on a budget:

• Clean and remove clutter from your house. Empty spaces encourage potential buyers to imagine themselves living there and a clean house looks well cared for. Remove clothes from your closet to show buyers they will have more than enough storage space.
• Add curb appeal. Spend some time tending to your exterior. Focus on trimming bushes and trees, weeding flower beds, repairing gutters, fixing peeling paint, putting in new mulch or gravel, weeding and repairing driveways and walkways, and installing decor like wreathes, pots, and house numbers.
• Paint walls neutral colors. Now it’s really time to say goodbye. Your home may lose some of its character in white, but it’s more appealing to a wide variety of buyers. People can also tell when a coat of paint is fresh and new!
• Make home repairs before you show the house. Focus your attention on things like leaking faucets, loose doorknobs, stained tiles and grout, running toilets, broken windows, and burned-out light bulbs
• Do small updates to spruce up your home for a dime. Ensure that the appliances match, get new cupboard knobs, or stick on new wall tiles. Small design touches go a long way.
• Give each room a well-defined purpose. Potential homebuyers find it inspiring. Even if you’ve been using the room for many tasks, pick one to showcase.
• Check the flow of your house. Ensure that furniture is not blocking people’s paths.
• Create a blank canvas. As with the simple wall colors, keep the decorations simple and free of personal items. The goal is for potential buyers to be able to imagine their own decorations in the house.
• Open the curtains. Let light in and turn on inside lights, and include some potted plants for a bit of green.
• Produce good smells in your home. Avoid cooking bacon, microwave popcorn, or anything with a lingering smell on the day of an open house. Instead, use the morning to do some baking.

Taking a critical eye to your house can help you identify many areas that need improvement. Prioritize this list to make your house move even faster on the market. If you want more suggestions, give me a call today.

Everything You Need to Know About Insulation

Insulation is a simple concept. It keeps your home warm in the winter. Did you know it also keeps your home cool in the summer? And did you also know that what you have may not be doing a good enough job? We don't often reevaluate our insulation, so it might be a great time to take another look and make sure you have the solution you need. 

Energy Efficiency
Did you know that the insulation of your home makes up about 40% of its energy efficiency? Gaps, holes and other areas where air escapes or comes into the home when not needed can all play a factor in how well your home is heated and cooled. 

Mold Problems
Insulation, including fiberglass and cellulose, can produce mold. Fiberglass itself doesn't encourage mold growth, but it can get dirty, and that dirt can be a breeding ground for spores. How well your insulation is sealed to prevent water infiltration will go a long way to preventing mold. 

Your Attic
Do you remember your mom telling you that you lose most of your heat through your head, and that's why you should wear a hat in the winter? While that's an old wives' tale, your house does suffer from a similar phenomenon. Homes without adequate insulation will lose a lot of heat through the attic, which can affect your overall home efficiency. 

Types of Insulation
There are a number of materials that are used for insulation. They all have a variety of pros and cons that you'll need to weigh before making your choice. The most popular materials are: 

• Fiberglass.
• Mineral wool.
• Cellulose.
• Polyurethane foam.
• Polystyrene. 

Before you decide which one works best for you, we encourage you to review the products and talk to experts. 

Venting
Your insulation choice needs to be paired with the proper kind of venting to make it work. If there is too much moisture, you run the risk of mold. But if you have no ventilation at all, you've created a closed system that won't be able to properly vent hazards such as carbon dioxide. Pairing your insulation with proper ventilation will be essential. 

The R-Value
Lastly, we should mention the most common rating system for insulation. You'll see that manufacturers refer to their products by the R-value. This is the capacity by which your insulation can resist heat flow. The higher the number, the more insulative your material is.

Keep in mind that the specific R-value number you need will vary based on your location. Minnesota has very different insulation requirements than Southern California does, for example.