Author Archive

Marketing the square footage of a home can work against sellers. Buyers tend to want more space than they currently have, but if your home is on the small side, they may not even consider it. Your smaller home may actually be more comfortable and feel more spacious than one with a bigger but less efficient footprint. On the other hand, some homebuyers want a manageable space, so a big home could be viewed as too much maintenance and expense.

Professionals measure homes differently: some by exterior dimensions, others by room measurements using a laser or tape. Without a standard method, results vary, and accuracy can be uncertain.

Measuring your home yourself can lead to disputes and potential liability if buyers contest your figures.

Instead, use third-party data for square footage, such as a bank appraisal or property tax records. The original builder’s floorplan with measurements is even better. Ultimately, buyers want to know how much living space they’re getting for their money.

Filed under: Blog by Jane Sullivan Horne
Comments Off on Why Sellers Shouldn’t Measure Square Footage Themselves

Refinancing your mortgage is worth it if you get a lower interest rate, a shorter term, or a smaller monthly payment. According to The Mortgage Reports, it’s usually beneficial if you can lower your mortgage interest rate by one percentage point. For a $400,000 loan, reducing the rate from 6.5% to 5.5% saves $257 per month, nearly 20% of the payment. With $8,000 in closing costs, you’ll need to keep the loan for 2.6 years to break even.

You can ask your lender about a no-closing-cost refinance, where you pay a slightly higher interest rate, but avoid upfront costs. This strategy allows you to sell your home anytime without penalty. Alternatively, you can roll closing costs into your new loan, ideal if you plan to stay for several years. You’ll pay more interest, but it can be cheaper than a higher-rate, no-closing-cost loan.

You can also replace an adjustable-rate mortgage with a fixed 30-year term, or switch a 30-year loan to a 20- or 15-year term. Principal payments will be higher, but the interest rate will be lower.

Filed under: Blog by Jane Sullivan Horne
Comments Off on When is it Worth it to Refinance Your Mortgage?

When you purchase a home, you have the right to have the property professionally inspected. Any inspection can reveal issues, but what matters is whether a problem is fixable, what that might cost, and whether you or the seller will pay for it

Here are a few items that should alarm you:

A seller’s disclosure with no useful information: Sellers should let you know if they’ve fixed leaks, replaced roof tiles or had a sewer line replaced. If the home is older, you need to know if asbestos or lead paint has been removed.

A damp, musty odor in the bathroom: You can’t go behind walls or under floorboards, but your nose can tell you there’s a problem. If the bathroom looks clean and smells dank, there could be a hidden leak.

Systems at the end of their lifespan: If the roof is 15 to 20 years old, you’ll have to replace it in a few short years.

Signs of bad DIY work: DIY homeowners can cut corners, ignore code violations and use the wrong materials.

Filed under: Blog by Jane Sullivan Horne
Comments Off on Inspection Findings That Should Alarm You

With fall and winter approaching, it’s essential to have your home’s heating systems inspected and serviced, according to the Consumer Product Safety Commission. A trained technician can check chimneys, central heat, gas heaters, heat pumps, electric heaters, and more to ensure they function properly and don’t produce dangerous carbon monoxide (CO). They can also install CO detectors throughout the house to ensure occupant safety.

Carbon monoxide is odorless and colorless, making it undetectable without alarms. CO poisoning symptoms can be mild or severe and are often mistaken for the flu. Low-level exposure can cause headaches, fatigue, shortness of breath, nausea, and dizziness. High-level exposure can lead to confusion, vomiting, loss of coordination, unconsciousness, and even death.

To prevent CO poisoning, the CPSC and Environmental Protection Agency recommend:

Installing interconnected CO alarms that all sound together.
Never using portable generators indoors; keep them at least 20 feet away from the home.
Not using cooking appliances for heat.
Opening the fireplace damper before and after use.
Avoiding barbeque grills in semi-enclosed spaces like garages.

Filed under: Blog by Jane Sullivan Horne
Comments Off on How to Prevent Carbon Monoxide Poisoning in Your Home

Homebuyers saw a turning point in interest rates as of June 2024. The Federal Reserve decided not to raise overnight borrowing rates, keeping them at 5.25%-5.50%. This is a sign that inflation is moving closer to the Fed’s 2% target. However, the Fed anticipates only one rate cut by year-end, which could impact the housing market.

Mortgage rates have decreased to their lowest levels since March 2023 but remain around 7% for the 30-year fixed mortgage. This rate is typically available only to those with excellent credit and a 20% down payment, which might explain why housing sales are 10% below mid-2023 levels.

Most economists expect rates to drop slightly by the end of 2024. Fannie Mae predicts an average rate of 7%, while the Mortgage Bankers Association, Realtor.com, and Wells Fargo forecast a drop to 6.5%. The difference between 7% and 6.5% is $122 per month on a $400,000 mortgage.

Talk to your Berkshire Hathaway HomeServices network professional for insights on the current market, as buying now might be advantageous if home prices are rising.

Filed under: Blog by Jane Sullivan Horne
Comments Off on Will Mortgage Interest Rates Keep Going Down?

Each room in your home serves a unique purpose, so painting the entire house white, grey, or beige might not be ideal. Instead, choose a palette of three to five complementary colors to match each room’s mood.

Start by considering how you want colors to make you feel. Look for inspiration on Pinterest or Houzz, or choose a theme like blue beachy tones or desert-inspired terra cottas. You can also pull colors from existing items (e.g. favorite rug or painting).

Color trends evolve every few years. For instance, Pantone’s 2024 Color of the Year, “Peach Fuzz,” is a soft peach tone that bridges youthful and timeless aesthetics. While Peach Fuzz may not suit everyone, it could pair well with a deep green in the living room, a soft blue in the den, or a sensual mauve in the owner’s suite.

Remember, contrasting colors are energizing, monochromatic colors are calming, and neutrals highlight textures.

Filed under: Blog by Jane Sullivan Horne
Comments Off on Transform Your Home With The Perfect Paint Palette

Variables affecting how much you need to save for a home include your income, debt-to-income ratio, home price, appraisal, inspection, and closing costs.

To stay within your means, spend no more than 30% of your household income on your mortgage (principal, interest, taxes, and insurance). Secure the best terms by maintaining high credit scores, providing a 20% down payment, and having cash for a good faith deposit, inspections, and closing costs.

With a gross annual income of $100,000 ($8,333/month), your mortgage payment should be $2,333 or less, and total debt payments no more than $667/month. Together, mortgage and debt payments should not exceed 36% of your gross monthly income, or $3,000, allowing you to buy a $400,000 home.

Consider these calculations:

Down payment: $80,000 (20%) or $12,000 (3%)
PMI: 0.22% to 2.25% of the loan balance
How to navigate the homebuying process.
Out-of-pocket: Earnest money (1%), appraisal $200-$600, inspection $300-$450, closing costs 2%-5% of purchase price, moving costs $1,250 (local) or $4,890 (long distance), home insurance $2,601
Reduce costs by buying a less expensive home, getting a no-closing-cost mortgage, and applying for down payment assistance.

Filed under: Blog by Jane Sullivan Horne
Comments Off on How Much Should You Save to Buy a Home?

As we enter into this Labor Day weekend, I just want to celebrate the hard work and dedication of workers everywhere!   Thank you for all you do! 

Jane At The Lake

Filed under: Blog by Jane Sullivan Horne
Comments Off on Happy Labor Day

Back in the day, you could make moving simple by saving old newspapers and retrieving boxes left behind your local grocery store. Today, you’ll likely have to order packing supplies for your move from somewhere online. Which is better—packing paper or bubble wrap? Actually, the answer is both.

Packing paper can take less space than bubble wrap, and it’s useful to tuck into corners to keep packed items from moving around in their boxes and breaking. You can wrap breakables in packing paper, but bubble wrap may be better for precious breakables, even if it takes up more space and raises moving costs. Bubble wrap is also water-resistant and non-abrasive, says the USPS store.

According to USpackingandwrapping.com, you can buy blank recycled newsprint paper inexpensively in either rolls or sheets. Rolls are 1,440 feet long and vary in width from 12 to 48 inches. A 30” newsprint roll is $51.14. You can get 1,200 20” by 30” sheets for $68.88. You can also try to get old newspapers for free from gas stations and grocery stores, or go to your local newspaper and ask to buy “end rolls” which are too short to be reused for printing standard quantities.

Filed under: Blog by Jane Sullivan Horne
Comments Off on Packing Paper or Bubble Wrap? It’s Your Move

Many aspiring homeowners cannot afford to buy a home where they want, especially in expensive inner cities. So, they’re turning to a new concept: rentvesting. It’s a clever way to enter the property market and start building personal wealth, giving you the freedom of renting coupled with the financial benefits of homeownership.

Rentvesting means renting a home where you want to live while buying an investment home somewhere else. While it may seem ironic, rentvesting can make sense. You rent a home where you can’t afford to buy, and then charge rent on a nice, less expensive property in the suburbs or a nearby town. The trick is to buy a home that’s right for your budget so you can earn a profit. Take the profit and save it, spend it to lower your rent, or best of all, reinvest it into your rental property so you can pay off your mortgage faster and build equity.

Of course, there are pros and cons. Some things to consider:

• You can live wherever you want
• You can buy a home anywhere you want
• As a homeowner, you can deduct the interest on your loan, depreciate the property, manage property expenses, and more. However, as a renter, you do not receive these tax benefits
• You can increase the rent on your property, but your rent payments may also increase
• You aren’t responsible for maintenance when you rent, but you’ll be responsible as a landlord.

Ask your Berkshire Hathaway HomeServices network professional to help you become a rentvestor.

Filed under: Blog by Jane Sullivan Horne
Comments Off on What is Rentvesting & How Can It Help You Buy a Home?