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Binge-watching streaming channels is so popular that homeowners are letting gigantic black holes take over their living spaces. The problem is that most homes weren’t built to comfortably accommodate 85 to 97-inch TVs; owning one means making it an awkward focal point above the fireplace that causes neck strain.

Is there a better way? Absolutely. One of the most important interior design principles is scale. Just as too many small items can clutter a space, a single large item like an oversized TV can overwhelm a space unless you can make it look intentionally and elegantly planned.

One way is to purchase a “framed” TV such as the Samsung The Frame, or custom frame any flat screen TV after market. The advantage is that your TV becomes a gorgeous piece of framed art on USB when you’re not watching the screen. The unit lays flush against the wall and any wiring can be hidden in the sheetrock. You can even make the TV/art piece part of a gallery wall or make a bold statement with an accent wall with the TV/art piece as the focal point.

Building a solution is also an option. A good carpenter/contractor can design a wall of built-ins to frame your TV with books, collectibles, and family photographs and create a sliding door or cabinet doors to hide your TV when not in use.

And if you’re selling your home? You can tell potential buyers that the TV stays as a bargaining tool.

Filed under: Blog by Jane Sullivan Horne
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Rent-to-own, or lease purchase, is a legal means of buying a home with a future closing date, usually one to five years from the date of the rent-to-own contract. Until then, the homebuyer rents the home before applying for a mortgage to buy the home. The concept can benefit both homebuyers and home sellers, but there is loss potential, too.

Here’s how it works: The renter pays the homeowner a non-refundable option fee of 1% to 7% of the purchase price of the home. The renter also pays a rent premium above the rental amount, and the rent premiums plus the option fee go into an escrow account that can be used to make the down payment or reduce the sales price of the home. This allows the renter the chance to build up their savings and/or improve their credit history. If all goes as planned, the renter will be approved for a mortgage loan to pay off the seller, but sometimes, buyers lose their jobs or fail to qualify for a mortgage loan and must forfeit the money in the escrow account.

Lease purchase agreements are often used by family members to help a loved one get into a home sooner. They also become more widely used in slower markets, when sellers are having trouble getting the price they want for their homes. Tech companies such as Divvy Homes, ZeroDown, Dream America, and Landis are trying to make homeownership easier by providing rent-to-own homes, advises NerdWallet.

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As a first-time homebuyer, you may be racking your brains trying to figure out how to make more money quickly for a down payment to qualify for a mortgage loan. You need to have cash tucked away that’s hopefully building interest, yet it also needs to be accessible in case the right home comes along and you need to act fast.

Thanks to low interest rates for over a decade (that disappeared with the rise in inflation after the pandemic), it’s been easy to put savings accounts out of your mind. Who cares about a yield of .03%? But as interest rates have risen, so have better returns on some savings accounts. High-yield savings accounts (HYSAs) or high-interest savings accounts, are a type of deposit account that gives you a greater return than a traditional savings account.

HYSAs are available at banks, online banks, and state and federal credit unions. You’ll be able to transfer money with an ATM card or online, and you’ll earn quite a bit more in interest, as much as 5% or 10 times the national savings account rate. You may pay fees, have restrictions on when you can take money out of the account, and you may have to maintain a minimum balance to avoid a monthly service charge. Your annual percentage yield (APY) can be tied to the amount you put into the account.

HYSAs are federally insured, so you can’t lose money, and you’ll earn compound interest for rapid account growth.

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When you put 20% down on a home using a mortgage loan, you own 20% and the lender owns 80%. As you make payments, most of the money goes to pay interest while some goes toward reducing your principal. Meanwhile, favorable market conditions may be increasing the market value of your home, giving you instant equity.

Equity is the amount of the home that you own, much like a savings account that pays interest on money you want to keep growing. After a few years, you may want to tap into that money to carry out home improvements, make a down payment on a second property, or pay off credit cards and other bills. Is it a good idea to use your equity?

The answer is this: you’re putting your home in deeper debt, so your reasons for using equity instead of another means of borrowing or consolidating must be worth the risk.

Home improvements are designed to add value to your home, a sure thing that will net you more money when you decide to sell it one day. Making a down payment on another home is riskier—as you’ll have two mortgages—but if you can afford it, you’ll have two properties potentially building equity.

Credit cards are unsecured debt so interest rates are high. Home equity loans are far less costly, so you could get much relief by paying credit cards off. However, you must avoid “reloading” the cards with new charges, which will take dedication and self-discipline.

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You’ve bought an older home that needs some work. How do you decide what needs redoing and how much money to spend?

The first rule of thumb is: don’t improve more than the best homes in your immediate neighborhood. A starter home, or a lot-value home, can be renovated to be attractive and functional, but keep in mind that if your future homebuyer wants a finer home, they’ll look at more expensive neighborhoods where all the homes are equally upscale.

If your house needs everything, tackle the changes that will make the most difference in your convenience, comfort, and utility, like the kitchen. Will you need new cabinets, countertops and appliances, or a whole new floorplan? Is there room to borrow space from another room? If so, a kitchen designer can help you plan, manage costs and get more storage and workspace. Realtor.com advises that you also have a plan B and C, in case what you want is too expensive or becomes unavailable. You can price high-end appliances, then choose less expensive back-ups. Ask your designer to provide a schematic with different price points.

Budgetdumpster.com recommends that you spend no more than 10% to 15% of your home’s value on any single room. If your home is valued at $400,000, your kitchen remodel should be no more than $40,000 to $60,000. If you also need to remodel baths, cut the total remodeling budget down to 10% per room, and set aside another 10% for unexpected expenses.

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For those who aren’t married, the housing market doesn’t have to pass you by: you and your significant other, best friend, family member, or business partner can purchase a home together as joint owners. Simply decide how you want to buy, use and, eventually, sell the property to determine what form of ownership goes onto the deed—as tenants in common, or as joint tenants with the right of survivorship.

As tenants in common, you both own shares of the property, you both have the right to use the property and you can make your own financial agreements. Either of you can sell your share of the property to a third party or pass your share to heirs.

Joint tenancy with right of survivorship (JTWROS) has specific requirements: each joint tenant must take title of their share at the exact same time, using the same legal instrument to create a JTWROS. Each tenant must have an equal interest in the property and can use and/or profit from the property equally, but shares cannot be sold or inherited, instead going to the remaining tenant(s).

The benefits of joint ownership are numerous as long as you each disclose your finances honestly and are willing to share the responsibilities of maintaining the property. You share the debt on the property, making it more affordable to own. Building equity leads to more financial security and having a clear deed that outlines your ownership rights helps to protect your interests and those of your partner.

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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.”

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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.

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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.

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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.

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