Info about HOA's and CCR's • February 27, 2025

HOA Covenants: What to Know About CC&Rs

by Debbie Marett

HOA covenants can shape neighborhoods and the lives of residents significantly.

Here’s what you should know about HOA CC&Rs.

With 75.5 million Americans living in communities governed by homeowners associations (or HOAs) and 3,000 new HOAs expected to form in 2025, community associations are quickly becoming an important aspect of real estate transactions.

An HOA is an organization that creates and enforces rules and regulations for the properties and residents of a given residential community. The regulations or guidelines governing the HOA community are called restrictive covenants and are outlined in a document called a Declaration of Covenants, Conditions, and Restrictions (CC&Rs). These CC&Rs can play an integral role in how an HOA influences day-to-day life in a neighborhood. Let’s explore them more so you are more in the know.

What are HOA Covenants?

HOA covenants are the rules and expectations for living in community governed by a homeowners association. For example, an HOA covenant may prevent residents from painting their home exteriors certain colors, or it may require all residents to pay a certain fee. Rules may differ from one community to the next, but they usually exist to protect property values and facilitate a good standard of living in the community.

HOA covenants have three types of governing documents: Covenants, conditions and restrictions (CC&Rs); bylaws; and rules and regulations.

Covenants, Conditions & Restrictions (CC&Rs)

CC&Rs are officially recorded and filed with the state. They cover the rights and obligations of both the HOA and the community residents. CC&Rs may cover property-use restrictions, maintenance obligations (for the HOA and residents), rule enforcement mechanisms, dispute resolution and insurance obligations.

Bylaws

Bylaws typically cover the day-to-day governance aspects of the HOA. This includes HOA board election processes, frequency of elections, number of board members, length of service terms and the responsibilities of the board members.

Rules and Regulations

Rules and regulations are a less permanent extension of CC&Rs. They often include rules that must be updated seasonally based on changing needs.

CC&Rs, bylaws and rules can all be amended, provided the board and members are largely in agreement. HOAs may choose to update their covenants every few years.

Why are HOA Covenants and CCR’S Important?

HOA covenants and CC&Rs are important because they can substantially impact the lives of community residents. They offer amenities and benefits, but these advantages may come at the cost of personal choice and individuality.

Limits on paint colors and presentation: HOAs may require residents to adhere to a strict code for home exteriors. This may mean residents aren’t allowed to personalize their home’s exterior to their liking through paint colors, lawn ornaments, or seasonal decorations.
Fees and amenities: Homeowners living in HOA communities must pay HOA fees for as long as they own their home. These fees can be steep depending on the community and cannot be avoided, even if homeowners choose not to use common amenities.
Quality of life: An HOA’s regulations, fees, and well-maintained common spaces all contribute to protecting property values in the community. HOA communities are a great fit for people aligned with these goals but may interfere with individuals seeking full independence.

What are some common features of CCR’S in HOA’s?

HOA covenants are usually created when a developer forms the community. The developer may attempt to anticipate the community’s needs based on their observations and experience. This is why HOA CC&Rs vary from one community to the next. However, when educating a client, real estate professionals can cite some of the following examples:
- Property maintenance standards: This may mean no piles of trash, broken or damaged fencing, or unsightly sheds.
- Pet rules: The HOA may prohibit pets above a certain weight, livestock (such as chickens) and restrictions on certain dog breeds.
- Parking and guests: The HOA may not allow parking in the street or oversized guest vehicles like RVs in the driveway. They may also restrict house parties, large celebrations or get-togethers on your property.
- Landscaping rules: Rules may prohibit flower beds or herb gardens in the front yard. Residents may not be allowed hardscaping elements like fountains, treehouses or swings.
What should you know about Covenants?

When considering buying a home in an HOA neighborhood, here’s what you should discuss with your real estate agent:
- HOAs may impact property values: Living in an HOA often means living in a clean, well-maintained neighborhood with community amenities. These benefits may inflate the price of the home.
- HOAs can shape neighborhoods: Based on their rules, HOAs can have a positive or negative impact on residents’ lives. The neighborhood may be clean and offer great amenities. However, certain HOA rules may mean residents can’t have the gardens or native plants they want, or only particular pets may be allowed in the community.
- HOAs may affect how homeowners use their home: An HOA may affect the owner’s ability to rent out the house. Many HOAs also block residents from using their homes for anything besides residential purposes. This means residents may not be able to run a small business from their home. This rule doesn’t apply to all HOAs or all small businesses, but it highlights the importance of understanding the HOA’s CC&Rs before buying a house.
  
  HOA’s for Buyers or Sellers:
  
  As your real estate professional, I can help buyers navigate HOAs by understanding your needs at the outset. For example, an HOA with rules against leasing may not be suitable for a buyer wanting to turn the home into a vacation rental. Similarly, an HOA with strict rules about pets may not be right for someone with large dogs.
  
  Finding the right house while navigating HOA rules may make house hunting a longer process, but through research and comparison I can help a buyer find the perfect home. Your specific needs may warrant a larger conversation about whether an HOA is the right fit.
  
  Agents representing sellers can find out if they are required by law to disclose any HOA information, such as unpaid dues or litigation. They can also highlight the benefits of the HOA to potential buyers.
  
  Where can I find CC&Rs?
  
  Before showing a house to a client, real estate agents can obtain a copy of the applicable HOA CC&Rs from the seller or listing agent, the county recorder’s office, or an HOA board member. You may also inquire about any outstanding disputes the seller has with the HOA involving potential litigation and unpaid dues or fines.
  
  Are CC&Rs legally binding?
  
  HOA CC&Rs are legally binding documents as long as they comply with local, state and federal law. When buying an HOA home, people typically sign a contract that states they’ve read and understand the HOA CC&Rs. Buyers are then bound by the contract.
  
  How are CC&Rs enforced?
  
  The HOA usually has a detailed process for dealing with rule-breakers. The process may begin with one or two violation notices followed by fines. If the problem remains unresolved, the board may set up a meeting or hearing to discuss the issue and how best to proceed. If the situation escalates, the HOA may take legal action against the resident.

Buying • January 30, 2025

Too Many Homes for Sale, or Not Enough? Making Sense of Recent Headlines for Home Buyers

by Debbie Marett

If you’ve been thinking about buying a house, you’ve probably heard that there aren’t that many homes for sale. And if you’ve been actively looking, chances are you can confirm that firsthand. Browsing listings often feels like looking for a needle in a haystack. You find a home you like, and before you can even schedule a showing, it’s already under contract.

If you’ve been following the market, you may have also heard that one solution to the housing shortage is for builders to put more new homes on the market. After all, it makes sense—if there’s not enough to go around, why not make more?

So here’s where things might start to feel confusing. Recent news headlines paint two very different pictures.

On one hand, an article from Fast Company points out that builders currently have the highest number of unsold new homes since 2009. That seems like a surplus, right? Surely that should ease the pressure on the market. But on the other hand, MSN recently reported that a lack of inventory, not rising interest rates, is the single biggest obstacle facing buyers.

It’s a bit of a head-scratcher: are there too many homes on the market, or not enough? And more importantly, how does it all affect you as a potential buyer?

If you’re feeling a bit perplexed by these seemingly contradictory headlines, you’re not alone. Real estate is complicated, and national news doesn’t always make it easier to get a clear picture.
The reality is, both statements can be true at the same time. It’s not as simple as one or the other.

Builders do have a lot of new homes sitting unsold. But the total number of new homes on the market is still a relatively small fraction of the overall housing inventory. At the same time, the existing home market is tight, with many homeowners hesitant to sell due to higher interest rates. Together, these factors create a market that can feel like feast or famine depending on where you’re looking.

Confused? That’s okay. The good news is, the housing market isn’t as hopeless as it might seem. It just requires a closer look.

Why Local Markets May Tell a Different Story

The first thing to know about the real estate market is that it’s not just local, it’s hyperlocal. National headlines give us big-picture trends, but what’s happening in your local market might tell a completely different story. For example, a rural, relatively undeveloped area experiencing a building boom may have a high number of unsold new homes. But a more developed neighboring town could be struggling with record-low inventory levels.

According to the National Association of Realtors, 4.38 million homes were sold in 2024. But according to Barron’s, approximately 683,000 of those sales were new homes—that’s about 16% of the total sales. Yes, new home inventory is high relative to recent years, but it’s still just a drop in the bucket compared to the overall market.

For buyers, this means that the availability of homes depends largely on where you’re looking and what kind of home you’re seeking. If you’re in a market where builders have overbuilt, you might find better opportunities to negotiate or score incentives like price reductions, upgrades, or assistance with closing costs. On the other hand, if you’re in a market with little new construction, the competition could be fierce for existing homes, especially in popular price ranges.

Another factor to consider is timing. Builders aren’t just sitting on these homes for fun. They’re anticipating a strong spring market in 2025, which means they’re likely to hold out for better prices rather than sell at a steep discount now. So while there might be more opportunities in certain markets, buyers should still act quickly and strategically.

How to Make Sense of Your Local Market

So what does all of this mean for you? First, it’s important to take a step back from the headlines and get a realistic picture of your local market. That’s where a real estate agent comes in. A knowledgeable agent can help you:

Understand whether your area has a surplus of new homes, a shortage of homes overall, or something in between.
Identify which price ranges are experiencing the most competition and which offer more opportunities.
Spot potential deals on new homes in markets where builders are eager to sell.

If you’re in a market with a lot of unsold new homes, you might be in a great position to find a deal—but that doesn’t mean you should wait. Builders are betting on a strong spring market, so the incentives you see now might not be around in a few months.

If, on the other hand, you’re in a market where inventory is tight, it’s even more important to work with a local expert. They can help you navigate the challenges of competing with other buyers, whether that means finding off-market properties, crafting a strong offer, or simply understanding which neighborhoods offer the most value.

The Takeaway:

News headlines about the current real estate market seem to contradict each other. Some reports say there is more new home inventory on the market, which is supposed to help cut down on buyer competition and possibly lower prices. On the other hand, there are reports that there still isn’t enough inventory to satisfy demand!

While national trends are interesting (and confusing!), real estate always comes down to your local market and your specific situation.

If you’re considering buying a house, the best first step is to talk to your local real estate agent (me!) who knows the ins and outs of your area. They’ll be able to give you a clearer picture of what’s really going on and help you determine the best strategy for your home search. Whether you’re looking for a brand-new home with all the latest upgrades or hoping to find a hidden gem in a competitive market, the right guidance can make all the difference.

I can help! Let’s connect!

Selling • January 27, 2025

What To Do If Your House Didn’t Sell

by Debbie Marett

Last year, as many as 1 in 3 sellers took their home off the market because it wasn’t selling.

If this happened to you too, you don’t need to be embarrassed. The market was very challenging in 2024!

What you need are answers. As your local real estate agent, I can help with that by seeing if it was priced too high, needs some repairs, or didn’t get the right exposure. If you still want to move, let’s connect to come up with a new strategy. Together, we can get your house sold.

Buying • Market Info • December 29, 2024

Home Appreciation: Your Best Protection Against Inflation

by Debbie Marett

Home Appreciation: Your Best Protection Against Inflation

Authored By: The MBS Highway Team

The Mortgage Bond market continues to pay close attention to inflation, which is a key driver of mortgage rates. Remember, inflation is the arch enemy of fixed investments like Mortgage Bonds because it erodes the buying power of a Bond’s fixed rate of return. If inflation is rising, investors demand a rate of return to combat the faster pace of erosion due to inflation, causing interest rates to rise. This is why keeping an eye on inflation remains critical.

The good news is that inflation has cooled considerably after peaking in 2022, with the three major inflation measures (Consumer Price Index, Producer Price Index and Personal Consumption Expenditures) showing significant year-over-year declines in both their Headline and Core readings. Core removes food and energy prices, which are often volatile.

While the rate of inflation has been decelerating, meaning prices are rising at a slower rate than they were, prices are still going up. There is a difference between the rate of inflation slowing versus the cumulative impact of inflation, which consumers feel. This is why news headlines may say that inflation is coming down, even if people feel differently when they’re purchasing goods and services.

Protecting Yourself Against Inflation

One of the best hedges against inflation is buying assets that do better than the rate of inflation and protect your buying power. Perhaps one of the best options is purchasing a home, which is much better than the alternative of renting.

As you can see in the chart below, the net worth of the average homeowner is now 42 times that of a renter ($415,000 vs $10,000). The absolute level of net worth has also grown impressively for homeowners, as homes have appreciated significantly over the last several years.

As a result of higher home prices and higher mortgage rates, the median age of a first-time homebuyer has risen as affordability has become more challenging. Just three years ago, the median age of a first-time homebuyer was 33, but this age has now risen to 38, meaning next year median first-time homebuyers will have been born in 1987.

This also brings demographic implications. When we look at a chart of birth rates, we can clearly see a huge surge in birth rates until 1990, meaning we should see more people over the next several years coming of age to buy a home. And birth rates settled around relatively higher levels in the years following as well, adding to the level of demand.

The bottom line is this growing demand for homes in the near future will be supportive of home prices, as inventory remains tight around the country.

Market Info • Selling • December 25, 2024

Why Online Valuation’s like Zestimate’s Miss the Mark – Your Net Worth Deserves Better than Guesswork

by Debbie Marett

Why Online Valuation’s like Zestimate’s Miss the Mark – and Why a Real Estate Agent Offers More Accuracy

Before the early 2000’s, you may have had a general idea about how much your house was worth at any given moment. But to get an accurate sense of it, you would’ve needed to ask a real estate professional to do some research, analyze it, and then give you their opinion.

However, even though most agents would provide it as a free service, it was still more effort than most people wanted to go through. Most people didn’t bother because it felt like too much effort, or they worried about wasting an agent’s time and being pestered with endless follow-up calls to list their home for sale. So, most homeowners relied on their gut, and the value of their home was just something they didn’t think much about on a regular basis unless they had a good reason.

That all changed in 2006 when Zillow introduced the Zestimate. Suddenly, anyone could get an instant valuation of their home with just a click. The Zestimate became an obsession for some—a real estate stock ticker tracking the “value” of their home. (Along with the homes of their neighbors, friends, enemies, coworkers, or even someone they just met at a party!)

If that sounds all too familiar to you, you may want to go back to the old way of doing things and rely more heavily on your agents’ advice. Because according to this recent Business Insider article, Zestimate’s are screwing up the homebuying process…

Why Real Estate Agents Cringe at Zestimates

You know who doesn’t love Zestimates? Real estate agents.

And it’s not because they see it as a threat to their existence. Agents have been fighting the good fight for many years, trying to caution people about putting too much stock in what it says the value of their house is.

It’s because they’re quite often inaccurate. And agents have to deal with the fallout of misinformed homeowners when they present them with a researched (and realistic) valuation of their home.

Imagine spending hours researching and providing a carefully analyzed, realistic home valuation, only to have it dismissed because it doesn’t match the Zestimate. Agents are left in the awkward position of being the bearer of bad news, trying to explain that an algorithm doesn’t know the market as intimately as someone who lives and breathes it every day.

It gets worse when clients assume agents are undervaluing their home to make a quick sale or question their expertise altogether. That misplaced trust in a Zestimate can damage an agent’s credibility, sometimes driving clients to work with someone else who just agrees with the algorithm.

The Problem with Algorithms

At one point, Zillow got into the business of buying and flipping homes, but it didn’t end well. Their algorithm, which should have made it difficult for them to fail, couldn’t accurately predict the value of houses. The result? Zillow had to pull the plug on its home-buying program, lay off a quarter of its workforce, and watch its company valuation drop by billions.

Even Zillow acknowledges the limits of its Zestimate. Their website lists disclaimers about accuracy, but many people likely skip over them. According to their website, the nationwide average margin of error is 2.4% for homes on the market and a much larger 7.49% for off-market homes. For a $500,000 home, that 7.49% translates to nearly $40,000—a big difference.

One reason Zestimate’s are more accurate for on-market homes is that they pull in detailed information provided by real estate agents. Agents have typically helped sellers price their homes accurately from the start, which improves the algorithm’s estimate.

But for off-market homes, it’s a different story. Zillow’s data shows that its Zestimates are within 20% of the actual sales price most of the time. So for a $500,000 home, that’s a range between $400,000 and $600,000. A $100,000 swing is hardly the pinpoint precision homeowners think they’re getting.

To be fair, they aren’t the only platform providing this type of info. But they were the first one people became acquainted with, and it’s still one of the most recognized and utilized by consumers. But many real estate websites offer the ability to look up the value of your home using “automated valuation models.”

Regardless of which one you may find yourself using, just keep in mind that they probably aren’t as accurate as you may think, and it might be a good idea to poke around and find out how accurate they actually claim to be.

Trust a Pro Over a Program

At the end of the day, a home’s value isn’t determined by an algorithm. It’s determined by what a buyer is willing to pay. To get the clearest picture of what your home might sell for in today’s market, you need more than data. You need context.

A real estate professional brings more than just market knowledge. They bring experience, insight, and an eye for details that no algorithm can match. They’ve toured countless homes and can draw nuanced comparisons based on factors like location, condition, and current buyer demand.

So, if you’re curious about your home’s value, don’t hesitate to ask an agent for their opinion. Most would be happy to provide a market analysis, no strings attached. After all, they’d much rather you trust their expertise than rely on an algorithm that could steer you wrong.

The Takeaway:

Zestimates can be a fun starting point for estimating your home’s value, but they’re no substitute for the expertise of a real estate professional. Algorithms may crunch numbers, but they can’t account for the nuances of the market. Before you make decisions based on an automated valuation, reach out to an your agent or appraiser for a more accurate and informed perspective. Your net worth deserves better than guesswork.

Market Info • November 23, 2024

Answers to the Top 5 Questions Everyone’s Asking This Holiday Season

by Debbie Marett

When Will Mortgage Rates Come Down?

Unfortunately, when it comes to mortgage rates, there’s no crystal ball. But there are key factors that will influence which way rates will go from here: the labor market, inflation, and the geopolitical landscape – just to name a few.

While mortgage rates have been volatile over the past several months, as of right now, expert forecasts show mortgage rates should gradually decline in 2025 — but it all depends on how the economy performs.

What Will It Take for Prices To Come Down?

In short, they won’t. The fact of the matter is, builders aren’t overbuilding — they’re still trying to catch up after 15 years of underbuilding. That means we don’t have a surplus of new homes for sale. At the same time, even though the supply of existing homes for sale is growing, it’s still below the levels the market has seen in a more normal year.

Those two factors combined are why all 10 of the experts we follow are forecasting prices will rise in the year ahead — they’ll just climb at a slower rate as inventory continues to grow:

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https://img03.en25.com/Web/MortgageBankersAssociation/%7B07b1990e-3611-4c10-a962-90edba1f02a3%7D_Mortgage_Finance_Forecast_Oct_2024.pdf
https://wellsfargo.bluematrix.com/links2/html/e66acfd0-821a-4d6b-aa16-f1720de2f44a
https://www.nar.realtor/sites/default/files/2024-10/forecast-q3-2024-us-economic-outlook-10-04-2024.pdf

The good news? You aren’t going to see the skyrocketing price appreciation that occurred over the past few years. Prices will continue to increase but at a healthier pace.

Will I Be Able To Find a Home Before I Move?

You may be hearing a lot of frustration from buyers about low inventory right now. It’s true that inventory hasn’t hit a typical, normal level in years. But inventory has grown substantially — and steadily — over the last year, giving buyers more options. In October, there were 29.2% more homes available than at the same time last year.

Of course, it’s important to know what’s happening locally, too. Each market may differ.

Will the Housing Market Pick Up Next Year?

With inventory steadily increasing and mortgage rates expected to come down gradually over the next year, more homes will sell in 2025. Experts project 5.2 million homes will sell next year, followed by continued growth in the years to come. While that’s not as much as when the market was booming a few years ago, it’s an improvement from the low we saw in 2024. And that means more activity.

It may be important to realize you might have the chance to get ahead of the crowd if you move now. A lot of people are going to wait until rates come down to jump back into the market. If you are considering a move you might want to seize this moment, to beat those other buyers to the punch — and that could mean less competition for your move.

Is the Market Going To Crash?

Everyone remembers the housing crash in the early 2000s, when home values dropped considerably, and people fell behind on their mortgages. And they’re afraid that’s going to happen again.

Here’s one big reason today is different. In 2008, homeowners owed more on their mortgages than their homes were worth.

Today, it’s the opposite. Homeowners have record amounts of equity. This equity acts like a safety net and is allowing many homeowners to avoid going into foreclosure if they’re facing financial hardships.

What that means is the value of homes significantly outweighs what people owe on their loans — and this is one sign that the housing market isn’t going to crash.

Bottom Line

Market volatility over the last few years has buyers and sellers skeptical of what’s to come, and hesitant to make a move.

But 2025 looks brighter. Expect mortgage rates to come down, total home sales to rise, and prices to increase at a more reasonable rate.

Buying • November 19, 2024

What Does It Mean to Make a Principal-Only Payment?

by Debbie Marett

You’ll hear the terms principal and interest when you get a home loan. Your principal is the amount you borrow for your home loan, and your interest is what you pay monthly to use the loan.

To calculate the principal of a mortgage, you would subtract your down payment from the final sales price of the home you’re buying. The principal you borrow starts accumulating interest right when you take it out.

Your interest payment is the second part of a monthly mortgage payment. You’re paying your mortgage lender to give you a loan, which is reflected in your interest. Most lenders will calculate your mortgage rate in terms of an annual percentage rate or APR. APR is what you pay on your loan per year in interest. If you borrow $200,000 and your APR is 5%, you’re paying $10,000 a year in interest.

Your principal is high at the start of your loan, so during this time, your monthly payment is primarily going towards paying your interest.

A few percentage points of interest significantly affect how much you ultimately pay for your loan. If, for example, you borrowed $150,000 and your interest rate on a 30-year loan was 4%, your monthly payment would be around $716. If you had the same loan but a 6% interest rate, your monthly payment jumps to more than $899.

A difference of just 2% in interest rates, for example, can make a difference of tens of thousands of dollars in how much you pay in interest over the life of your loan.

When you make a payment on your loan, your lender will apply part of your payment to interest and fees before reducing the principal. The lender will use the same formula to pay the interest if you make additional monthly payments. The lender adds up interest accrued during the month, using a part of your payment to pay accrued interest before it’s then applied to your principal.

So, What is a Principal-Only Payment?

A principal-only payment is going entirely toward reducing your principal. Since the amount of interest you pay is based on the principal, your interest charges are smaller when you reduce your principal.

You can pay off debt faster with principal-only payments and save on interest.

Not all lenders will allow a principal-only payment, and some lenders will let you make additional payments during the month, but you need to specify it should go toward only the principal.

Regarding a home loan, you’re making an additional principal payment that’s supplementary and applied directly to your principal mortgage amount, which goes beyond your scheduled monthly payment.

Your monthly payments stay the same, no matter how many principal-only payments you make. You will save more money in interest throughout your loan life.

You might want to recast your mortgage if you want lower monthly payments.

Mortgage Recasting

Finally, if you want to save on your home loan, mortgage recasting can help you pay less interest costs and maybe cut down on the total number of payments you must make before you pay your mortgage in full.

You make a lump-sum payment towards your loan’s principal balance with a mortgage recast. Your lender amortizes your mortgage, reflecting your lower balance. You can lower your monthly payments because your principal went down, but your term and interest rates stay the same.

One example of when someone might recast a mortgage is if they bought a new home before selling their old one. Then, once they sell their previous home, they can use that money to recast their new mortgage.

If you get a bonus or windfall of money for some reason, you might also want to do a mortgage recast. Many lenders will charge a servicing fee for this, but not usually more than a few hundred dollars.

Not every lender will offer this option, and some types of loans aren’t eligible.

You can’t have a government-backed loan and it must meet minimum standards for principal reduction. For example, you usually have to make a minimum payment of $5,000. You’ll also probably need to meet equity requirements, and you have to meet requirements set by your lender for your payment history.

Buying • October 31, 2024

Avoid These Top Homebuyer Mistakes in Today’s Market

by Debbie Marett

No one likes making mistakes, especially when they happen in what’s likely the biggest transaction of your life – buying a home.

That’s why partnering with a trusted agent is so important. Here’s a sneak peek at the most common missteps buyers are making in today’s market and how a great agent will help you steer clear of each one.

Trying To Time the Market

Many buyers are trying to time the market by waiting for home prices or mortgage rates to drop. This can be a really risky strategy because there’s so much at play that can have an impact on those things. As Elijah de la Campa, Senior Economist at Redfin, says:

“My advice for buyers is don’t try to time the market. There are a lot of swing factors, like the upcoming jobs report and the presidential election, that could cause the housing market to take unexpected twists and turns. If you find a house you love and can afford to buy it, now’s not a bad time.”

Buying More House Than You Can Afford

If you’re tempted to stretch your budget a bit further than you should, you’re not alone. A number of buyers are making this mistake right now.

But the truth is, it’s actually really important to avoid overextending your budget, especially when other housing expenses like home insurance and taxes are on the rise. You want to talk to the pros to make sure you understand what’ll really work for you. Bankrate offers this advice:

“Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations.”

Missing Out on Assistance Programs That Can Help

Saving up for the upfront costs of homeownership takes some careful planning. You’ve got to think about your closing costs, down payment, and more. And if you don’t work with a team of experienced professionals, you could miss out on programs out there that can make a big difference for you. This is happening more than you realize.

According to Realtor.com, almost 80% of first-time buyers qualify for down payment assistance – but only 13% actually take advantage of those programs. So, talk to a lender about your options. Whether you’re buying your first house or your fifth, there may be a program that can help.

Not Leaning on the Expertise of a Pro

This last one may be the most important of all. The very best way to avoid making a mistake that’s going to cost you is to lean on a pro. With the right team of experts, you can easily dodge these missteps.

Bottom Line

The good news is you don’t have to deal with any of these headaches. Let’s connect so you have a pro on your side who can help you avoid these costly mistakes.

Building a Home • October 26, 2024

Why Having Your Own Agent Matters When Buying a New Construction Home

by Debbie Marett

Finding the right home is one of the biggest challenges for potential buyers today. Right now, the supply of homes for sale is still low. But there is a bright spot. Newly built homes make up a larger percent of the total homes available for sale than normal. That’s why, if you’re craving more options, it makes sense to see if a newly built home is right for you.

But it’s important to remember the process of working with a builder is different than buying from a homeowner. And, while builders typically have sales agents on-site, having your own agent helps make sure you have proper representation throughout your homebuying journey. As Realtor.com says:

“Keep in mind that the on-site agent you meet at a new-construction office works for the builder. So, as the homebuyer, it’s a smart idea to bring in your own agent, as well, to help you negotiate and stay protected in the transaction.”

Here’s how having your own agent is key when you build or buy a new construction home.

Agents Know the Local Area and Market

It’s important to consider how the neighborhood and surrounding area may evolve before making your home purchase. Your agent is well-versed in the upcoming communities and developments that could influence your decision. One way a real estate agent can help is by reviewing the builder’s site plan. For example, you’ll want to know if there are any plans to construct a highway or add a drainage ditch behind your prospective backyard.

Knowledge of Construction Quality and Builder Reputation

An agent also has expertise in the construction quality and reputation of different builders. They can give you insights into each one’s track record, customer satisfaction, and construction practices. Armed with this information, you can choose a builder known for consistently delivering top-notch homes.

Assistance with Customization and Upgrades

The most obvious benefit of opting for new home construction is the opportunity to customize your home. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise helps make sure you focus your budget on areas that will give you the greatest return on your investment later.

Understanding Builder Negotiations and Contracts

When it comes to working with builders, having a skilled negotiator on your side can make all the difference. Builder contracts can be complex. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. Plus, agents are skilled negotiators who can advocate for you, potentially securing better deals, upgrades, or incentives throughout the process. As Realtor.com says:

“A good buyer’s agent will be able to review any contracts before you sign on the dotted line, ensuring you aren’t unwittingly agreeing to terms that only benefit the builder.”

Bottom Line

If you are interested in buying or building a new construction home, having a trusted agent by your side can make a big difference. If you’d like to start that conversation, connect with a local real estate agent.

Uncategorized • October 26, 2024

Common Things that Homeowner’s Get Wrong about their Homeowner’s Insurance Policy

by Debbie Marett

Home insurance is designed to cover you in the event that your home is damaged. You pay a monthly fee so that if and when you need to use your policy, you don’t have to spend your entire savings trying to cover the damages, or worry that you won’t have enough money to even cover the damages.

Many homeowners think their home insurance covers them in any and all circumstances. Unfortunately, that’s just not true, and thinking it is could put you in a tough (and expensive!) position if and when you file a claim.

So, what are the things most people get wrong about their home insurance? A recent article from realtor.com outlined common incorrect assumptions people have about their home insurance policies, including:

Their policy covers every kind of disaster. Many homeowners think that their home insurance policy will cover them in the event of any and all disasters. But unfortunately, that’s often not the case. For example, most standard home insurance policies don’t cover flood damage, which could be devastating if you find yourself in the midst of a natural disaster, like a hurricane or flooding event.
They don’t need flood coverage unless they live in a flood zone. While there are certain places that are historically more prone to flooding—like coastal areas, which are more likely to have hurricanes—there have been more extreme weather patterns, even in areas where you wouldn’t expect certain types of disasters. So, even if you don’t technically live in a flood zone, you still might want to have a flood policy in place.
They don’t realize they have to pay a deductible before their insurance kicks in. Many people think insurance will cover all of their damage-related costs, but they’re forgetting the deductible. Insurance deductibles typically run between $1000 and $5000, which means that you will have to shell out that $1000 to $5000 before your insurance will pay for any damages.

What are HOA Covenants?

Covenants, Conditions & Restrictions (CC&Rs)

Bylaws

Rules and Regulations

Why are HOA Covenants and CCR’S Important?

What are some common features of CCR’S in HOA’s?

What should you know about Covenants?

HOA’s for Buyers or Sellers:

Where can I find CC&Rs?

Are CC&Rs legally binding?

How are CC&Rs enforced?

Why Local Markets May Tell a Different Story

How to Make Sense of Your Local Market

The Takeaway:

Home Appreciation: Your Best Protection Against Inflation

Protecting Yourself Against Inflation

Why Real Estate Agents Cringe at Zestimates

The Problem with Algorithms

Trust a Pro Over a Program

The Takeaway:

When Will Mortgage Rates Come Down?

What Will It Take for Prices To Come Down?

Will I Be Able To Find a Home Before I Move?

Will the Housing Market Pick Up Next Year?

Is the Market Going To Crash?

Bottom Line

So, What is a Principal-Only Payment?

Mortgage Recasting

Trying To Time the Market

Buying More House Than You Can Afford

Missing Out on Assistance Programs That Can Help

Not Leaning on the Expertise of a Pro

Bottom Line

Agents Know the Local Area and Market

Knowledge of Construction Quality and Builder Reputation

Assistance with Customization and Upgrades

Understanding Builder Negotiations and Contracts

Bottom Line