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In a fast-moving housing market, you may conclude that you don’t need to do much to sell your homes. But, selling a home “as is” may cost you more than you know.

Your listing contract will include a clause that says the home is being conveyed “as is,” which means you’re selling the property in its current condition with no intention to make repairs or improvements. That doesn’t absolve you of responsibility to the homebuyer—you’ll still have to provide a state-mandated seller’s disclosure attesting to what you know about the home’s condition.

If the buyer includes a home inspection contingency in the sales contract, it allows them to come back and ask for repairs before closing or they can ask for a price reduction. You can refuse, and the home will go back on the market, wasting precious marketing time. In the event that the buyer intends to tear down or gut the home, the sales contract can be drafted without an inspection contingency or it can be contingent to major systems only.

There’s also a stigma to selling “as is” which means the buyer is purchasing the property sight-unseen and will likely make a much lower offer—if they make one at all. Your home could stay on the market longer than you want, leaving you obligated to manage expensive carrying costs, including the mortgage, home insurance, HOA fees, utilities and taxes.

Ask your Berkshire Hathaway HomeServices network professional for advice before you decide to sell “as is.”

Filed under: Blog by Jane Sullivan Horne
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The luxury homeowner’s bathroom for 2024 is more than a spa-like retreat where sumptuous comfort is paramount. It’s a step back in time to a calmer, more natural world that comes alive with a touch of 70’s boho chic.

According to the National Kitchen and Bath Association, many of the colors, textures, and sustainable materials that were popular in the 1970s are getting renewed attention for their timeless appeal, including warm treetop and fernlike greens, teak and other natural woods, and woven textures of linen, hemp, and cotton. The trick is to incorporate these elements with modern aesthetics, including minimalism, universal design principles, and personalization.

Water closets: A room within a room, the “toilet room” can be closed off with a door, screen or cabinet for privacy. It can also include a one-person sink and storage for paper supplies.

Curbless showers: With the shower floor flush with the rest of the bathroom, spraying water is kept in check with a subtle cascading drain and strategically placed open glass door. Enhance the look and safety underfoot with a pebbled stone tile.

Unique focal points: Personalize the bath with something hand-crafted—a one-of-a-kind antique chest, rattan vanity stool, or a fine hand-knotted tribal rug from Asia. Handsomely framed mirrors should be backlit and all lights should be dimmable.

Concierge features: Make coffee or a cold drink at a built-in bar complete with a mini fridge.

New-old colors: Choose colors that have warm yellow-gold undertones, including greens, yellows, and ochre.

Filed under: Blog by Jane Sullivan Horne
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With millions of rentals available worldwide, short-term vacation listing companies are turning the hospitality world upside-down. Homeowners are renting out their homes for music festivals, sporting events, weddings, and more. They’re turning places like Broken Bow, Oklahoma, and Knoxville, Tennessee, into popular short-term rental hubs. Unique properties made from space ships, train cabooses, grain silos, and treehouses become “Guest favorites” when they reach over 2 million views on Airbnb, while property hosts can achieve “Premier Host” status on Vrbo with gracious acts of hospitality.

So how can you get in on the action? You and your listing have to get attention in an increasingly crowded marketplace. According to Arrived.com, it’s all about maximizing the occupancy rate—attracting bookings and limiting cancelations. Professional property managers, cleaning services, architects, interior designers, home stagers, and real estate photographers can help you and your property become superstars with top reviews from renters.

Your listing must shine in photographs to highlight the home’s stunning views and beautiful décor. To get high ratings, your property must be meticulously clean, well-maintained and landscaped. Surprise your guests with welcome baskets, coupons from local businesses, and maps and lists of fun things to do in the area.

To become a superhost, you must achieve a high response rate to renters, rent your home for a certain number of nights, and maintain a 4.8 overall rating or at least 80% 5-star reviews. Don’t overbook your home to raise your occupancy rate. Cancellation rates above 1% count against you.

Filed under: Blog by Jane Sullivan Horne
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According to the Internal Revenue Service, the primary residence you sold in 2023 may have federal tax benefits that can help you avoid capital gains on the sale, if you meet certain criteria for ownership and use of the home.

To claim a tax exclusion, you must have owned the home for at least two years and lived in the home for at least two out of no more than five years of ownership. The tax gain exclusion that’s available is $250,000 if you’re single, or $500,000 if you’re married and use a joint tax return. If you sell at a loss, such as a short sale, you can’t deduct the loss from your income, likely because of the many homeownership benefits subsidized by the government, including loan programs, first-time and low-income homebuyer grants, energy star appliance credits, and so on. Tax exclusions are also subsidized by the government.

To maximize your gain and lessen your tax bill, you can adjust the basis of the home you sold. The basis is the price you paid for the home, including closing costs and settlement fees. The adjusted basis, explains Smart Asset, factors in capital improvements that you made to the home, such as replacing the roof or the HVAC, adding a second story, or laying utility lines to the home. You can also adjust for casualty losses, like restoring your home after a fire or water damage.

The higher your adjusted basis is, the lower your capital gains are.

Filed under: Blog by Jane Sullivan Horne
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Granite has ruled the luxury kitchen design world for decades, its popularity surpassing marble, quartz, limestone, soapstone, and other luxury materials quarried from the earth. The whites, grays, blacks, beiges, and browns of stone bring an attractive earthiness to interior design, giving a designer look to any kitchen and bath. But stone has its drawbacks. Most stone must be resealed periodically and cleaned only with compatible products. Some stone is soft and subject to chips and scratches.

One stone stands above the rest in performance: lavastone. While most igneous stones are formed underground, lava is molten rock spewed from a volcanic eruption onto the surface of the earth. As the lava cools, it hardens into lavastone, which can then be “extracted, custom-cut for each order, and glazed with enamel at heat in excess of 1,300 degrees Fahrenheit (1000 Celsius).” Because lavastone is mined from ancient lava eruptions, availability is limited. Consequently, lavastone is the most expensive stone for countertops at approximately $250 to $300 or more per square foot.

Lavastone is known to be more durable than other stones. Once it’s fabricated into a countertop, it can withstand chipping, hot pans, stains, abrasion from cleaners, and the UV rays of the sun.

Any pigment that can be added to ceramics is suitable for lavastone countertops, for a universe of colors. Once the ceramic cools, the smooth, non-porous glaze crackles into distinctive patterns as individual as snowflakes. Choose your color wisely, as your countertops will last for decades.

Filed under: Blog by Jane Sullivan Horne
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The U.S. avoided a recession in 2023, and some say it will have a soft landing in 2024. Inflation has hovered in the 3% range for many months—higher than the central bank would prefer, but at 2.6% for personal consumption expenditures (PCE), it’s closer to the target range of 2% and far from the double-digit highs since the pandemic began. Most sources cite the “core” PCE, which excludes volatile energy and food prices which sat at 3.2% by year’s end—the lowest level since March 2021.

Meanwhile, existing home sales volume began to edge higher by the end of 2023, and prices rose 4.0% year over year to a median of $387,600. Mortgage interest rates ended the year at 6.61% for a benchmark 30-year fixed-rate conventional home loan. Existing housing inventory remains tight with approximately 3.5-months’ supply on hand at the current sales pace.

Due to the improvement in market conditions and higher consumer confidence, Realtor.com’s research finds that two factors will drive housing sales in 2024—relative affordability in the Midwest and Northeast and the 2023 dip in western home prices. Areas like Oxnard, Riverside, Bakersfield, San Diego, and Sacramento in California; Las Vegas, Nevada; Toledo, Ohio; and Springfield, Massachusetts could get double-digit sales growth in 2024. Toledo, for example, offers housing 51% below the national median with low unemployment.

These improvements should encourage more homebuyers to make the leap to homeownership. Ask your Berkshire Hathaway HomeServices network professional to update you on the latest market conditions in your area.

Filed under: Blog by Jane Sullivan Horne
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House sizes have come a long way from 1973 when the average home was 1,660 square feet. The average in 2015 was 2,687 square feet, and since then home sizes have fluctuated, according to the economy, mortgage interest rates, and overall affordability. The question is – how much space do you really need?

Automobiles with luxuries like 360 degree back-up cameras, lane change assists and tail-gating prevention have accelerated in price, and so have homes equipped with smart features, walk-in closets, en suite baths, and other can’t-live-without amenities. Homes are larger and come with more bedrooms – most homebuyers want at least three to four so they can use the extra rooms as offices, guest rooms, craft rooms and nurseries.

To help you decide how much home you really need, here are a few things to think about:

Larger homes may have better resale values, but they’re more expensive to maintain, so get a detailed home inspection to help you plan future replacement and repair costs.

Affordability is paramount. Buy a home that you can comfortably afford so you don’t have to live under economic pressure. Let your lender help you determine the most you should spend.

Larger homes tend to be located further away from urban city centers. Think about your commutes to and from work, schools, family, healthcare, etc.

Consider how long you plan to live in the home. The longer you occupy your home, the better it serves as a hedge against inflation while you build equity.

Filed under: Blog by Jane Sullivan Horne
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While many potential homebuyers have been knocked out of the market by higher mortgage interest rates and home prices, there’s hope on the horizon that they’ll have better luck in 2024.

Banks are tightening their lending standards due to increases in credit card and car loan delinquencies, according to Freddie Mac. This is also impacting mortgage applications, credit lines and refinance activity – loan originations were down approximately 30% in October 2023 from the previous year. The good news is that mortgage delinquencies are low compared to other loan types. Inflation is waning, but still remains above the Federal Reserve’s target of 2%. Consumer spending will decelerate due to slower economic and weaker employment growth which will cause rates to come down in 2024. Continuing homebuyer demand will keep home prices elevating 2.6% in 2024, but with rates dipping as low as 6%, housing will be a little more affordable.

If you’re planning to buy a home in 2024, Lending Tree recommends that you have at least a 3% down payment for a conventional loan –a loan that’s “originated, backed and serviced by private mortgage lenders like banks, credit unions and other financial institutions.” If you have less than 20% down, expect to pay for private mortgage insurance (PMI) between 0.14% and 2.33% of your loan amount in annual PMI premiums. To get the best interest rate and lower PMI premiums, your credit score must be at least 780 or higher, or you’ll pay a higher interest rate.

Filed under: Blog by Jane Sullivan Horne
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When you sell your home, things can go smoothly or go wrong, and which way it goes depends largely on how well you prepare for the transaction and respond to glitches that may occur along the way.

Your Berkshire Hathaway HomeServices network professional can help you determine the right asking price to sell your home the fastest and for the most money. If you list your home too high, you’ll find that homebuyers become more critical and demanding. If your homebuyer feels good about the purchase, they’re more likely to be reasonable with you.

Some homebuyers may not be well prepared enough to buy a home, so it’s prudent for you to insist that only homebuyers who’re pre-approved by a lender or can prove cash assets be allowed inside your home. Ask to see the lender’s letter of pre-approval before you sign a contract.

During the home inspection, homebuyers may fear that the home needs too much work. If there are repairs or replacements to be done, offer to take care of them immediately or be willing to negotiate on price.

Your agent will monitor each step in the transaction to make sure all parties perform their roles, from good faith deposits, to appraisals, to title searches, on time and in a professional manner.

If you’ve put your home in pristine condition and listed it at fair market value, you’ll prevent many problems from occurring. A reasonable homebuyer won’t walk away from a well-kept home at the right price.

Filed under: Blog by Jane Sullivan Horne
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Many homeowners who need to make a move may be reluctant to sell their homes because they have a low interest rate and will pay a much higher price for their next home, as well as a higher interest rate in today’s market.

Renting out an existing home and buying another property is an attractive option—if you play fairly with your lender. Some purchase loans aren’t available to investors—such as FHA and VA-guaranteed loans—and are only for owner-occupants, while investment property loans require larger down payments and charge higher interest rates. Trying to buy a property while hiding the fact that it’s a rental could result in your loan being called due.

You can buy a home with owner-occupied financing and turn your home into a rental with little risk of penalty if you do the following:

• Occupy the home for at least 12 months, as agreed in the loan documents. Frequent applications for new owner-occupied financing every few months will make underwriters suspicious.
• Use the same mailing address as the property.
• Be prepared for lender scrutiny with a logical explanation, such as a job change, or moving closer to family, if you have other, nicer properties and seek owner-occupied financing for a lesser quality home.
• Don’t refinance your owner-occupied home to pull out equity to use as a down payment on the next home and then finance your next home as an owner-occupant unless you intend to actually occupy the home for 12 months or more.

Filed under: Blog by Jane Sullivan Horne
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