Mandeville Development May Soon Be Used for New Homes

 

The housing market is booming and inventory is still low. Developers want to take advantage of this on some wetlands just west of Lewisburg Estates close to Mandeville. The wetlands are located at the mouth of the Chinchuba Bayou flood plan that is made up of marsh grasses and cypress trees.

The current landowners have applied for a coastal use permit through St. Tammany parish. This coast permit would allow them to fill in the wetland site and lake bottom. Their plan is to add a bulkhead and a private road. This would be the first step in developing the land for future homesites.

Many in the community are distraught about the thought of future development on the wetlands. Filling the lake in would lead to flooding and change the ecological landscape that could hurt the community.

According to John Lopez, a coastal scientist who reviewed the permit for the development for the Lewisburg Civic Association, says that it could cause flooding in the Mandeville area. He confirmed that the wetlands are healthy enough to allow cypress trees to grow but should not be developed.

He reported that if the wetland is developed, the filled land would slow down the water’s exit from the Bayou Chinchuba watershed into Lake Pontchartrain. A bulkhead could also exacerbate erosion in adjacent areas.

State environmental agencies also report a negative impact. The filled land would replace 2.5 acres of shallow intertidal habitat that is home to submerged aquatic vegetation and where Indian manatees also call home. The Indian manatee is a threatened species already.

The state Department of Natural Resources did a biological investigation report for the project. Their findings indicated that there are plenty of other lakefront properties that are available to develop in the same area.

“Each little slice of shoreline, marsh and productive waters taken away hurts the lake, the aquatic culture, and the birds and animals whose lives depend on this type of habitat," David Lawton, a Lewisburg resident communicated.

This piece of wetland has been in discussion for decades. Many developers have wanted to develop the property but have not gone through the plans due to opposition from residents, environmental groups and local and state officials.

“Everybody wants a piece of paradise. There ain’t enough paradise to go around anymore so you got to create paradise out of the wetlands and the marsh,” Ted Ralph, a nearby resident and retired federal engineer, said as he pointed out the site of the proposed development from his fishing boat.

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This Fall Saw a Gain in Single-Family Permits

 This September has seen a gain in single-family permits. The first nine months of 2021 reported year-to-date (YTD) got up to 864,184. This is a 21.2% increase from the 713,286 reported in September 2020.

All four regions had a very strong increase year-to-date ending in September 2021. The South saw the largest increase of 22.8% while the Midwest reported the lowest at 16.1%. The Northeast reported 20.4% and the West 20.3%. For multifamily permits, the West reported 35.3, Midwest 26.7%, the South 24.5% and the Northeast 17.7%.

Of the four regions, 49 states and the District of Columbia reported an increase of single-family permits issued. The highest growth was in the District of Columbia with a 234.7% increase! Mississippi was the only state that saw a decline of 0.5% during September 2021.

At the local level, below are the top 10 metro areas that issued the highest number of single-family permits.

Metropolitan Statistical Area	Single-family Permits: (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX	40,255
Dallas-Fort Worth-Arlington, TX	39,161
Phoenix-Mesa-Scottsdale, AZ	27,534
Atlanta-Sandy Springs-Roswell, GA	24,928
Austin-Round Rock, TX	19,250
Tampa-St. Petersburg-Clearwater, FL	15,444
Charlotte-Concord-Gastonia, NC-SC	14,767
Orlando-Kissimmee-Sanford, FL	12,725
Jacksonville, FL	12,725
Nashville-Davidson–Murfreesboro–Franklin, TN	12,625

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St. Tammany Parish School District Approved Tax Renewals

 Last month St. Tammany Parish voters voted on four property tax renewals for their school district. The voters approved the tax renewals which total 42.72 mills. The St. Tammany Parish School District will gain around $102 million dollars annually.

This sounds like a huge chunk of change, and it is, however it is just part of the school district's approximately $453 million budget. The money pulled from the four taxes will go to things such as general school operations, employee salaries and student educational programs.

St. Tammany schools Superintendent Frank Jabbia is thankful that the four taxes generating the $102 million won by the voters. He said it would have been "catastrophic" if the four taxes were not supported by the community. The four taxes will not go into effect until 2023 and will stay in effect for 10 years. Nineteen percent of the 186,000 St. Tammany Parish voters voted on the four taxes.

The first proposition at 4.42 mills (bringing in around $10.52 million annually won by 54%. The second proposition at 32.41 mills (bringing in around $77.1 million annually) won by 55% of the vote, proposition three at 3.14 mills (bringing in around $7.4 million annually) received 54% of the votes and the fourth proposition at 2.75 mills (bringing in around 6.5 million annually won by 53%.

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Tips On Improving Your Indoor Air Quality

 When it comes to the air in your home, it has become more important now than ever in this day in age. The COVID-19 pandemic kept the country indoors and in their homes a lot within the past couple of years. In the past, air pollution has been focused on the outdoor air quality but with the past stay-in-door orders, this has also brought our home's air quality into the equation.

Our indoor air quality can affect our health and our well-being. Bad indoor air quality leads to colds, the flu, asthma allergies, impaired sleep and concentration, sluggish productivity, mood disorders and health problems.

Professionals in the industry report that more than half of the homes in the country do not have correct ventilation which leads to poor indoor quality. Surprisingly, indoor air pollutants can be found in your home's paint, furniture, carpets and cleaning products.

“Understanding the sources and, more importantly, controlling the causes behind common indoor pollutants can help to protect the health of your family, and one of your most important investments — your home,” says Scott Rasmussen, president of Quality Edge.

Below are some tips on how you can improve your indoor environment at home to help with indoor air quality.

Proper Ventilation Is Crucial for Clean Air

While your home does need to be weatherproofed, it still needs to be able to breathe. Proper ventilation is imperative for this and helps alleviate those indoor pollutants.

“Inadequate ventilation can increase indoor pollutant levels by not bringing in enough outdoor air to dilute emissions from indoor sources, and by not carrying indoor air pollutants out,” Rasmussen says. He adds that proper ventilation is crucial for clean air.

Your attic is one of the first places you should start. A home's attic needs continuous ventilation. An attic with no airflow causes mold, growth, mildew and rot. Make sure the ventilation at the eave edge can bring fresh air in through the roof exhaust vents.

If this is a concern for you and your home, you might want to consider investing in a high-performance roof ventilation system. This kind of system will do its job well but is architectural pleasing to the eye and will not stand out and ruin your home's curb appeal.

Extend the Life of Your Home

A new roof with an adequate roof ventilation system will help do this. As a homeowner, you will be able to avoid costly repairs due to mold, rotten wood or odor buildup with this system.

Another way to extend the life of your home is to add vented soffit products that will not only help with the health of your home but will add to your home's curb appeal. These products do this by elevating the look of your house's exterior.

“Replacing your soffit also presents a great opportunity to update your home’s trim colors,” Rasmussen says.

Prevent Leaks

A home's exterior siding can prevent water leaks. These leaks will seep into your home's interior causing moisture damage and mold. Professionals suggest a moisture-wicking siding should be used on a new home or added to a remodel.

If you cannot afford to replace your current siding, then a regular maintenance check-up is suggested. Look for cracks that can be scaled up to help prevent any water leaks.

Other Steps to Take

There are many simple things you can do to your existing home that will help with air quality. Make sure to clean and dust regularly which will minimize indoor air pollutants. Also regularly check your HVAC system and replace their filters several times a year.

Remember the quality of the air in your home does not only affect those that live in the house but extends the health and life of the home itself. “High temperature and humidity levels in your attic spaces due to inadequate ventilation can increase your energy costs, reduce the effectiveness of your home’s insulation, cause premature aging of your home’s building materials and void your home’s roof warranty,” Rasmussen says.

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Housing Market Demands Still Building Up Builder Confidence Even With Supply Chain Disruptions

 

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released this October shows strong builder confidence. The main reason for this push in builder confidence is the strong consumer demand. According to the report builder's opinion of the market for newly-built single-family homes rose 4 points to 80 this October. This is incredible news since there are still hurdles for builders when it comes to rising material prices and material shortages.

“Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” said NAHB Chairman Chuck Fowke.

“Builders are getting increasingly concerned about affordability hurdles ahead for most buyers,” said NAHB Chief Economist Robert Dietz. “Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt. Policymakers must focus on fixing the broken supply chain. This will spur more construction and help ease upward pressure on home prices.”

The three major HMI categories all saw gains in October. Current sales conditions rose five points to 87, sales expectations in the next six months saw a three-point gain to 87, and traffic of prospective buyers rose a big four points to 65. The Midwest rose to 69, Northeast stayed at 72, the South stayed at 80 and the West unchanged at 83.

The NAHB/Wells Fargo HMI is a monthly survey that measures builders' opinions of the current single-family home sales and expectations for the next six months. A scale is used to rate their opinions as good, fair or poor. Along with this measurement, participating builders are also asked to rate the traffic of prospective buyers. This is scored as high to very high, average and low to very low.

Forecast shows that the end of 2021 will still have a strong housing market with strong buyer demand. If you are in the market to purchase or sell a home now is the time to contact a local sales professional.

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Summer 2021 Saw An Increase in Single-Family Permit Gains

 

According to the National Association of Home Builders, the first 8 months of 2021 reported 775,772 single-family permits issued year-to-date. Compared on a year-over-year basis the end of summer 2021 saw a 25.8% increase over August 2020.

All four regions of the country reported increases. The highest in the Northeast was at 29.3% and the lowest was in the Midwest at 21.6%. The remaining regions were as follows the South at 26.4% and the West at 25.7%. Multifamily was also on the rise with 33.7% in the West, 27.2% in the Northeast, 24.9% in the Midwest and 24.6% in the South.

The same goes for all 50 states and the District of Columbia which reported increases across the country. The highest was in the District of Columbia with an increase of 208% from 87 to 268. The total of the 10 highest states was 62.3%

At the local level, below are the top 10 metro areas that issued the highest number of single-family permits.

Metropolitan Statistical Area	Single-family Permits: Aug (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX	36,359
Dallas-Fort Worth-Arlington, TX	35,572
Phoenix-Mesa-Scottsdale, AZ	25.209
Atlanta-Sandy Springs-Roswell, GA	22,768
Austin-Round Rock, TX	17,375
Tampa-St. Petersburg-Clearwater, FL	13,603
Charlotte-Concord-Gastonia, NC-SC	13,174
Orlando-Kissimmee-Sanford, FL	12,068
Nashville-Davidson–Murfreesboro–Franklin, TN	11,482
Jacksonville, FL	11,400

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Will Home Prices Still Increase in 2022?

Home appreciation has been busy this year. According to many leaders in the industry, home prices have been skyrocketing all year and are still on the rise. Data shows all over the market that the percentages are still rising year-over-year.

The latest percentages of the year-over-year increase in home price appreciation are all-around 18%. The House Price Index (HPI) that is part of the Federal Housing Finance Agency (FHFA) reported 18.8%, the S. National Home Price Index from S&P Case-Shiller 18.6% and the Home Price Insights Report from CoreLogic is 18%.

The increases are found across the board at every price point. CoreLogic's HPI sees almost a 19% increase year-over-year in all price points. The low price point saw a 22.1% increase, the low-to-middle saw a 20% increase, the middle-to-moderate saw a 19.9% increase and the high price point saw a 19.1% increase.

The FHFA reported an increase across the country. The highest increase year-over-year in the second quarter in 2021 was in the mountain region is 22.9% and the lowest was seen in West North Central with a 14.9% increase. The remainder includes New England at 20.4%, Pacific at 20.1%, South Atlantic at 17.3%, Middle Atlantic at 17.1%, East South Central at 16.4%, East North Central at 15.7%, West South Central at 15% and West North Central at 14.9%. Overall the United States saw an average of a 17.4% increase.

Prices in 2022 should also increase. The future still sees a low housing inventory with high demands. Home appreciation will still be going on in 2022 but more moderate.

“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022,” reported CoreLogic.

If you are in the market for a home, contact your local Realtor who can help you along the way. The next year 2022 will hopefully see a great boost in the housing market.

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Several Questions To Ponder Before Buying a Home

Purchasing a home is one of life's biggest and most stressful events. With that said, it is also one of the most exciting events. When it comes to advise, everyone has it and while friends and family have your best interest in mind, to make the best decision, you need to ask yourself these three questions.

1. What's Going on with Home Prices?

Home prices are a big part of the housing market. Home prices directly affect how much it will cost you to buy a home and how much you stand to gain as a homeowner when prices appreciate. Waiting might not be in the best interest of the buyer.

The current market is seeing big home price surges and looks like they will continue. Keeping Current Matters reveals Home Price Forecasts for 2021. This is a good tool to use to predict just what it will cost you to buy a home. Today the average of all forecasts is 12.46%. This means a median-priced home that cost $350,000 in January of 2021 will cost an additional $43,610 by the end of the year. So in a nutshell the longer you wait to purchase a home the more it will cost you.

2. Are Today's Low Mortgage Rates Going To Last?

Due to record-low mortgage rates, today's market is booming. Interest rates also put a big dent in the market. The lower the rate the better the market, the higher the rate the slower the market. Just a slight increase can make a big impact on the overall cost of a home.

3. Why Is Homeownership Important to You?

The answer to this question is not the same for everyone. This is a personal decision and can only be answered by you. Financial benefits are important but emotional benefits are also. According to the 2021 National Homeownership Market Survey, there are nine reasons homeowners value homeownership.

These nine reasons directly affect how you feel about your home. Six of the nine reasons include stability, safety, a sense of accomplishment, a life milestone, a stake in the community, and personal pride. The National Housing & Financial Capability Survey from NeighborWorks America reports that Americans believe owning a home provides a sense of safety and security and an increase in financial stability.

Remember owning a home is a life-changing event and will have a big impact. This is a big decision and all options should be well thought out. Using a trusted Realtor can help you with the decision.

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The National Green Building Standard and What I Can Do for Green Renovations on Historical Homes and Buildings

Historical homes are important to our housing market. Renovations on historical homes can be challenging because of surprise damage, regulations and preservation. Take this challenge and top it with making an older home green. This is where National Green Building Standard® (NGBS) comes in handy.

The National Green Building Standard® (NGBS) is a guide to certification for green homes. Chapter 11 in this guide is dedicated to the "Certification for Existing Buildings." Building professionals can use this guide for a comprehensive, voluntary, above-code approach to design and construct residential and mixed-use properties and for land development.  Builders are able to take this guide and use it as a "roadmap for green renovation projects" and match it with historical preservation regulations

Many builders are taking old historic buildings and turning them into residential properties. Things they need to consider are how many units will they include in their design and how much energy and water the proposed property will use versus how much the post-rehab used.

This can be a difficult task however with the NGBS these types of projects have more flexibility. Under the NGBS mandatory, historically designated buildings with historic designation restrictions are exempt from NGBS mandatory practices for unaltered portions. Cargill Falls Mill in Putnam, Connecticut is a great example.

Cargill Falls Mill is located on the Quinebaug River and is deemed a historical building. The property was turned into over nine acres of residential space with 125 units.

Karla Butterfield, NGBS Green Master Verifier, of Steven Winter Associates noted: “As a historically registered landmark, the complex was under strict renovation requirements. The NGBS remodeling program was the only residential tool that allowed the project to quantify the energy and water savings while addressing the great efforts made by the project team to reduce material and resource consumption, improve indoor air quality, address sustainable site strategies, and promote health and wellbeing for residents.”

Old buildings, especially in urban areas, are perfect projects to make into residential space. To learn more about the process visit the National Association of Home Builders site where NAHB’s Sustainability and Green Building efforts are explained. You can also find tips on water efficiency, energy efficiency, indoor air quality, and other building science strategies.

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New Homes Constructed With Central AC Are More Common in Some Regions Than Others

Ninety-five percent of new single-family homes built in 2020 were built with central air conditioning (AC) systems according to the Census Bureau’s Survey of Construction (SOC). Homes with central AC have been increasing since 2000 when there were only 85.5%.

The percentage of new single-family starts with central AC is different in the nine Census divisions. In West South Central, South Atlantic and West North Central divisions 100% had central AC installed, in East South Central 99%, and in East North Central 96%, in New England 83% and the lowest in the Pacific with 80%.

Ninety-nine percent of new single-family homes were built with an air or ground source heat pump or a forced-air system for the primary heating source of the home. As for each division, in the East South Central 77%  air or ground heat pumps were used, in the South Atlantic 75% and in the West South Central 20%. Air or ground heat pumps are primarily used in warmer climates because they are less efficient in colder regions. As for fuel, 50% of new homes built in 2019 used natural gas while only 45 used electricity.

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A Spike in Four or More Bedrooms in New Single Family Homes

The housing market is strong and both resale and new homes are strongly in demand. According to the U.S. Census Bureau Survey of Construction's (SOC) 2020 new single-family homes with four or more bedrooms increased. This trend could be because of more homeowners having to live work and play in their homes due to the pandemic.

The SOC reported that across the country 45.2% of new single-family homes started in 2020 had four or more bedrooms. This was up from 2019's report of 42.6%. Again this increase is due to the shift in buyers' desires in a home. The pandemic devastated the US economy in 2020 paving the road for record low interest rates. The low rates coupled with low housing inventory shot house prices up. First-time homebuyers who would purchase a home with less than four bedrooms were pushed out of the market.

This caused a shift in homes.  The 2020 SOC reduced share of new homes started with 2 bedrooms or less (9.7 percent vs 10.5 percent the previous year) corroborates the lowered presence of first-time homebuyers in the new home market that year.

The East North Central region was the only division that showed a decline in new single-family homes built with four or more bedrooms. Across the board, homes with less than 1,200 square feet had more homes built with fewer bedrooms.

If you are in the market for a new home, contact your local Realtor. A professional Realtor can help you through the whole process getting you what you want for the price you want.

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Awards for Spec Homes That Are Built As Healthy Homes

With a strong housing market and shortage of inventory, many builders have gone from building custom homes to speculative homes only. Builders do have to still target buyers. Smart homes and healthy homes are a way to do this.

The industry leaders report that buyers will pay a premium for energy efficiency, smart home tech and healthy homes. Once the pandemic began, health and energy savings have become even more of an important factor. In fact, former National Association of Home Builders Chairman Randy Noel has turned to building spec only.

Noel, from Reve, Inc., spent 30 years building custom homes only. He is now currently building a spec home for the Home Builders Association of Greater New Orleans' Parade of Homes. The home features products and materials that are efficient, resilient, healthy and smart home tech.

“You can, with a great deal of confidence, build a healthier home for your customers going forward,” Noel stated following the (WWYW) certification process.

Healthy homes are recognized under the pilot the Wellness Within Your Walls (WWYW). There is a list of Healthy Home Features which include:

• Maximizing natural light,
• Detaching the garage from the home and connecting it via a breezeway,
• Installing locking cabinets for pharmaceuticals and garden chemicals,
• Controlling humidity for the outside fresh air being brought into the home and reducing stress on the heat pump,
• Removing contaminants from the incoming utility water through reverse osmosis water filters,
• Installing automatic faucets to reduce touch points,
• Incorporating an electromagnetic field (EMF) control cabinet — the interior of which is painted with a special electromagnetic wave-blocking paint — for electronics charging,
• Integrating automatic vents in the bathroom to exhaust damp air from the home,
• Installing a non-combustible, electric fireplace and induction cooktop,
• Incorporating a kitchen herb wall.

If you are interested in seeing a healthy home, the Home Builders Association of Greater New Orleans' Parade of Home is located in Ashton Plantation in Luling, LA. The home has been given the 2020 Best in American Living Gold Award for Healthy Home and was a finalist for the 2020 NAHB Global Innovation Award International Home the Year.

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Mandeville Will See the Girod Street Stroll This Fall

Typically held in the spring, the Girod Street Stroll has been postponed due to COVID-19 and will now be held in the fall. The event is held annually by the Old Mandeville Business Association.

This year the Girod Street Stroll is presented by Resource Bank and will take place on September 25, 2021 from 5pm - 9pm in Old Mandeville. The activities take place starting at Girod Street at the Mandeville Trailhead and following along to the Lakefront. Live music and entertainment will be by 10th Street Brass.

Patrons will be able to stroll to over twenty stops and enjoy small bite plates by local Mandeville chefs and cocktails. Participants of the event can vote for the best small plate and cocktail. There will also be a raffle of a live painting that will be created by artist Andrew Wilkie.

"It is one of Mandeville's most popular annual events, as it showcases our local businesses and restaurants, our artists community, and our vibrant culture," OMBA Board Member Andre Judice said.

The Old Mandeville Business Association (OMBA) is a non-profit that is made up of both businesses and residences of Old Mandeville. The goal is to serve and support the local commerce while preserving and promoting the charm and beauty of the community.

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Housing's Growth According to NAHB's Eye on the Economy

 

June 2020 saw a small decline in single-family new home sales to around 6.6% according to the National Association of Home Builders Eye on the Economy. The annualized rate fell to 676,000. Although the past several months have seen a small monthly decline, the new home sale is still 13.5% higher on a year-to-year basis from 2020.

The small decline according to some industry professionals is from the lack of inventory and the higher construction costs while other industry leaders believe it is caused due to the higher new home prices. New home prices have risen 10% since January 2020.

The new home inventory is down by 44% which is a little over 34,000 homes over the last year. Supply factors including the material, labor and lots are holding builders back. The survey also indicated that today's buyers are not happy with housing affordability. In fact, the share of buyers who can afford less than half the homes available for sale worsened from 63% at the end of 2020 to 71% by midyear.

Although the market is still going strong, those who did not purchase during the second quarter of 2021 was due to pricing. The higher construction cost and development costs have hindered housing prices. The GDP growth for the second quarter was at a low of 6.5%. The good news is that NAHB is predicting an overall growth rate of just under 7% for the whole year. This will be the best rate seen since 1984.

This is still a good time to buy as mortgage rates are still reasonable. If you are in the market for a home, contact your local Realtor.

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New $150 Million Retirement Community To Be Built in Mandeville

 

Al Copeland Sr. who is famous for starting Popeyes Chicken and is native to Louisiana is a big part of a new retirement community coming to Mandeville. Copeland Sr, who passed away in 2008 owned a 29-acre tract of land in Mandeville that the family recently donated to LSU Health Foundation.

Al Copeland Jr. said the family was honored to donate the land in his father's name. The land, worth $7 million is the largest donation LSU Health Foundation has ever received. The site, across from Mariners Village, will house the $150 million mixed-used development which specializes in retirees. This will make the project the first retirement community that is connected to a university in Louisiana.

The multi-use restricted retirement community will feature restaurants, a marina, a hotel and apartments along with health care services. The health care services will be serviced through LSU Health Sciences Center and the center's students. The development will not only aid in training future medical professionals but will also provide revenue for cancer research.

“The partnership, growth and symmetry between the LSU Health Sciences Center and the LSU Health Foundation absolutely shines through this project,” LSU Health Sciences Center Chancellor Larry Hollier said in a prepared statement. "Having the ability to help train students in geriatric health care while providing new funding for faculty research in fighting cancer, not to mention building a beautiful place for LSU alum (and the public) to retire and enjoy life in a wonderful community is the best of every world."

The project will bring training opportunities and jobs to the Northshore. The revenue earned will go towards cancer research in honor of Al Copeland who died of a rare form of cancer. All in all, over $20 million from the land lease will be dedicated to cancer research funding for the next 40 years.

"While the project is only at the conceptual stage, we look forward to working with the LSU Health Foundation through our planning and zoning process once a formal application has been made,” Mandeville Mayor Clay Madden said.

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Over Half of New Construction Single-Family Homes in 2020 Were Built on Slab Foundations

 

During the release of the National Association of Home Builders (NAHB) Survey of Construction (SOC) it was reported that over half (65%) of new single-family homes built in 2020 were constructed on slab foundations. The remaining accounted for 22% with a full/partial basement and 12% with a crawl space.

In fact, there is a wider gap between a slab and full/partial basement and this gap is still widening. This can be seen in the reports from previous years. In 2000 only 46% of new single home starts were built on slabs. This is not the case with new homes constructed on a basement. In 2000 36.8% were built on basements while only 22% were in 2020.

The percentages differ from region to region. New homes that were built on slab foundations were predominant in the West South Central (95.7%), followed by the South Atlantic (79.4%), next was the Pacific (97.7%) and still strong but a little under half in the Moutain Region (48.1%).

Over the past decade, most new single-family homes were built on slab foundations. Experts say this is due to the warmer climate. In the East South Central division, 43% of the new single-family homes were built on a crawl space which outnumbered the 38% that were built on slabs.

The climate in each region plays a big part in what types of foundations are used in that area. Homes that are built in colder areas must have their foundations built below the frost line. This means that the majority are built on partial or full basements. New England saw 79.8% of new homes built with full/partial basements, West North Central (77.2%), Middle Atlantic 69.5% and East North Central 54.3%.

The survey also reported the average area of a finished basement in the colder regions. In the East North Central new single-family construction homes had 1,156sq. ft., while West North Central had 998sq. ft., Middle Atlantic 921 sq. ft. and in New England 734 sq. ft. According to the survey nationwide the average finished basement area was 1,137 sq. ft. in 2020.

If you are in the market for a new home, now is a great time to buy. Check with a local Realtor who can help you with the process from start to finish.

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Structural Issues Due to Fill Dirt and Moisture Problems

 Fill dirt is used under all homes' foundations as a structural component but it can also harm the foundation of a home. According to NAHB fill dirt is the leading cause of structural failures in new home building.

Walt Keaveny, a professional engineer and geoscientist for 2-10 Home Buyers Warranty, explains that this is not only the most common cause of structural failure but is also one of the most expensive repairs. In fact, around the U.S. on average it cost over $50,000 and in some states over $100,000!

Keaveny discusses fill dirt problems and tips for minimizing the problems in Let's Talk Dirt. Let's Talk Dirt is a new resource put out by the National Association of Home Builders Construction Liability. Subjects covered in the publication are about fill placement, density requirements, testing, and the benefits of working with a geotechnical engineer.

Another subject explored in the Ultimate Guide to STOP Basement Water Leaks is moisture found in basements. It is said that over fifty percent of all basements have moisture issues. The most common areas where a basement sees moisture problems are leaks in the walls and floors. If water leaks are not resolved, then the soil around the foundation will be compromised, wood framing will rot, drywall and finishes will be ruined and mold will occur.

When purchasing a home, it is best to work with a Realtor who can help you determine if the home you want to purchase has foundation issues.

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Buyers Who Are Looking For New Single-Family Homes Opt For A Single-Story

  According to the US Census Bureau’s Survey of Construction (SOC) and information gathered by NAHB two-story homes are on the decrease. They found in 2020 the same amount of two-story homes started was equal to single-story homes.

Nationwide, the share of new homes with two or more stories fell from 52% in 2019 to 50% in 2020, while the share of new homes with one story grew from 48% to 50%.  The South region has seen the most increase in one-story homes for three straight years. One story new homes started in 2020 shows the most in West South Central with 62%. The least was in New England with 15%.

The 2020 Survey of Construction shows each region divided by new homes with a single story and new homes with two or more. The Pacific region shows 39% built were one story while 61% were two or more, Mountain showed 51% single while 49% were two or more, West North Central had 57% one story while 43% were two or more, West South Central had 62% one story with 38% two or more, East North Central showed 56% were one story while 44% were two or more, East South Central showed 61% one story and 39% two or more, the South Atlantic came in with 48% one story and 52% two or more, Middle Atlantic with 28% one story and 72% two or more, and New England with 15% one story and 85% two or more.

That means that four of these nine divisions saw the greatest newly-built homes with two or more stories. In fact, two or more story homes were seen in greater amounts in the divisions along the coasts around the country. As far as single-story homes, the Midwest and South won.

A surprising twist to the current home market that might have stemmed from the pandemic. If you are in the market for a new home, call a local Realtor in your area. A Realtor will be able to help you with your home search.

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Ways To Home Stage on a Budget

  One of the most important parts of the home sale process is staging your home. According to industry leaders, staging your home prior to putting it on the market will not only make you more money but will also help your home sell faster.

The National Association of Realtors reported that 96% of realtors believed staging had an impact on the buyer. Here are some great tips for staging your home before you put it on the market.

Go on a Cleaning Spree

For those on a budget, this is a great way to start the process of getting your home ready to sell. Most homeowners do weekly tasks to keep their home clean like dusting and vacuuming. When getting your home ready to sell, go the extra mile by scrubbing the grout in the bathrooms, soaking faucet heads in vinegar to remove limescale buildup, clean the baseboards and deep cleaning all the remaining areas of the house.

Declutter Everything

A big room can look small and cramped when it is filled with clutter. When staging a room, remember less is more. Just think, if you declutter now, there will not be as much stuff to pack when moving.

Keep Flat Surfaces Clear

Shelves, countertops, desks and tables should be cleared. According to top professional home stagers, this is one of the top on the list.  A few decorations here and there are fine, but clean lines are a home staging staple.

Remove Personal Items

A buyer does not want to see that this home belongs to the seller. The buyer wants to be able to envision themselves in the home. Remember you want to showcase your home's potential and keep distractions at bay. Removing family photos, knick-knacks or memorabilia that can distract potential buyers is a must.

Paint Walls with Neutral Colors

Bright or dramatic paint color can give a negative impression on buyers. In order to appeal to the widest range of buyers, repaint your walls in a neutral color. Use color schemes such as white, cream, beige or light gray. Studies show that neutral paint in homes can bring a seller an average of 107% return on investment.

Refresh with Mild Scents

Another sense that buyers use when touring a home is smell. Bad odors such as pets or cigarettes can detour buyers. If your home has been exposed to such elements over time, take baking soda and sprinkle it on soft surfaces such as carpet and furniture. You will want to leave it there overnight and then vacuum it up the next day. Another trick is to wash your windows and clean the walls with mild soap and water. Steaming cleaning your floors will also help with pet odors and stains.

Remove Evidence of Pets

Not all potential buyers are pet lovers. Pets can cause damage to the home such as scratch marks, odors and stains. If these reminders are left, it can detour many buyers from purchasing your home. A tip for pet stains is to treat them with a mixture of vinegar, water, baking soda, peroxide and detergent. If a pet has scratched hardwood floors, purchase a hardwood repair kit to fix the scratches. Just like the sellers leave when someone tours your home, the pets should also.

Let in Natural Light

When looking at home listings many always talk about the open and bright spaces. Letting in the sunlight is a free staging tip and can make a world of difference in a space. Both professional home stagers and real estate photographers believe a well-lit room is a strong selling point for those looking to purchase a home.

Choose the Right Light Bulbs

Most homes still need light fixtures to brighten the rooms. Do not use fluorescent bulbs rather use soft white bulbs that some say mimic natural light. Some homeowners often use daylight bulbs which send a blue hue into the rooms. These work well in kitchens, bathrooms and home offices.

Create More Space with Mirrors

Just like magic mirrors can give the illusion of more space in a room. In order to make your square footage "stretch," you will need to strategically place mirrors. An example would be to take a large mirror and place it at eye level near a light source in a room. This makes the room feel bigger and more comfortable.

Upgrade the Cabinets

Dated cabinets can make your kitchen look old and run down. A way to fix this problem without breaking the bank is to transform your existing old cabinets. To do this you can add a fresh coat of paint and new hardware.

Organize the Closets

Buyers always look at how much storage space a home has. Storage space is one of the top features on the buyer's list. A great trick to use is to organize and clean out your closets. Clear floors and neatly hung clothes can make a closet appear bigger. You want to create the feeling that there is a lot of empty space that can be used.

Rearrange Your Current Furniture

When working on a tight budget, a good solution is to work with what you already have. Make sure your floorplan and furniture create an easy flow for potential buyers to navigate. Change your furniture around to create a nice flow to each room.

Use Existing Items

As mention earlier, use what you got. If you need to purchase something on a budget a great place to find items is at estate sales, garage sales, thrift stores, antique stores, Facebook Marketplace or Etsy.

Place Decor Using the Rule of Three

A great insider tip is to group decorative pieces by three. For example take a large, medium, and small decor piece and place it next to one another on a coffee table. Another great idea is to take a tall vase and place it with two smaller candles.

Buy New Bedding

Worn bedding or mismatched bedding can mess a whole bedroom design. A well-made bed is a plus in staging a bedroom. Use neutral color bedding when staging.

Put Slipcovers on Furniture

Give your outdated or dirty sofa and throw pillows a lift. An easy way to do this is by putting slipcovers over the sofa and throw pillows. A tip is to always choose slipcovers that match the room decor. This is a much less expensive way to update a room over buying all new furniture.

Try Virtual Staging

Sometimes it is hard for buyers to envision a room when it is vacant. A vacant property can still be stage without bringing in furniture and decor. Virtual staging is a great way to stage a home on a budget. Virtual staging makes the area look really staged and can be completed by a virtual stager at $50 per photo.

These tips won't break your bank and will help you get more bang for your buck when you sell your home. It is still wise to hire a Realtor that is experienced in selling a home in your area.

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Pat's Rest A While a New Restaurant in Mandeville

 Chef Pat Gallagher is one of the most accomplished restauranteurs on the north shore. He is known for Gallagher's Grill with the original location in Covington and two additional locations in Slidell and Mandeville and Band's Grocery, a sandwich shop in Mandeville. Now he has opened Pat's Rest A While in Mandeville.

This unique spot opened its doors in January 2021 and has different buildings and interconnected areas — from the cypress-lined main dining room, across the broad open-air
deck, into one cottage turned into a private dining area and to another turned into a cozy, club-like bar. The view from each area of the restaurant is a picturesque scene of Lake Pontchartrain. The lake is definitely the unifying characteristic of this restaurant that serves dishes that you can find at a laid-back beachfront hut to a refined white tablecloth restaurant.

The restaurant is housed in several 19th-century buildings that have been refurbished. Originally the Frapart Hotel, the property became known as the Rest A While when it turned into a summer camp for needy families and orphans.

Unfortunately, when Hurricane Katrina hit, the property was severely damaged. Jill and Barrett McGuire, local real estate developers, purchased the property and raised the elevation on the buildings. When they purchased the property, they pictured it as a restaurant and this came to fruition with the help of Pat.

This unique restaurant has many personal touches and intimate spaces. In the main dining room, there is a beautiful tapestry of local cypress and oak. The bar has a clubhouse feel under open rafters and there are room numbers along the walls throughout that show where the structure was once divided into different rooms. An old toboggan-like sled that used to be on the lake is displayed as well as a photo of a group of women who used to work at the Rest A While.

Patrons and pets alike can enjoy this Mandeville spot. This July an open-air bar opened with water bowls for visiting pets. Come by 2129 Lakeshore Drive in Mandeville and enjoy some local seafood and drinks.

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Tips To Follow When Purchasing a Home in the Current Market

While today's housing market is not in the buyer's favor, people are still purchasing homes. Most potential buyers will need a mortgage and there are many steps to this process. When deciding if this step is right for you, take into consideration the following things regarding the process.

Now may still be a good time to buy a home

This is a personal decision, there is no right or wrong time to purchase a home in general. Whether a buyer's market or a seller's market you should take the leap when it makes the best sense in your life. Ann Thomspon, with Bank of America, says that consumers will always want to purchase a home and need to purchase a home.

Especially with the changes we have seen in the last year due to COVID-19, our home has become our live, work and play space. People have placed a greater emphasis on the value of a home.

“A second bedroom that can be used as a home office, or an outdoor space, are now more desired, prompting many people to move or buy for the first time,” says Rick Rudman, CEO at Curbio, a home renovation technology company.

Get pre-approved ASAP

The first step before even looking at listings is to see how much home you can afford. Pre-approval is the first step to let you know what you can afford and to prove to others that you are financially able.

In the current seller's market, a buyer needs to prove to agents and sellers that they are serious. “These days, in some markets, you need a pre-approval just to start looking at homes,” says Ann Thompson, retail sales executive of the West with Bank of America.

Prepare for bidding wars ahead of time

A seller's market means bidding wars are inevitable. The record-low mortgage rates coupled with low inventory is causing a panic among buyers. Sellers are entertaining multiple offers, many receiving multiple all-cash offers.

“Potential buyers now should prepare themselves by discussing, with their real estate agent, how much a home is worth beforehand, so that they can go into a bidding war with the strongest offer tactics, while also knowing when to back away if the price escalates,” says Thompson.

Understand appraisal gaps

With bidding wars comes bids over the asking price. These high bids cause appraisal gaps. An appraisal gap is a disparity between the offer you put on a property and what the property is deemed to be worth by a lender.  Even if you are approved for $350,000 and you offer $350,000 on a $300,000 listing price that doesn't mean the lender will give you the full $350,000 on the home. If the appraisal comes in at $300,000, you will have to come up with the $50,000 out of pocket.

“In this market, we are seeing a lot of appraisal gaps being written into contracts. Please be sure to understand how that works before agreeing to it,” says Shanon Schinkel, branch manager and mortgage lender at HomeTown. “Also, check with your lender before agreeing to it. Using that money for an appraisal gap can change your ability to qualify.”

Keep track of changing rates and terms

Today's mortgage rates are beginning to rise and the historical low rates we have seen in the last year will be a thing of the past. Schinkel reports that over the last six weeks, the rates have crept up. You will want to keep track of where the rates are and where they will be going during your home buying process. Shop around for rates and terms for the best deal.

Research down payment assistance programs

This market is hard for buyers but especially challenging for new home buyers. Down payment assistant programs can help. There are programs offered through government organizations and private agencies. You will want to research all of these avenues to see if you are eligible.

“There is a shortage of houses in many markets. This is creating bidding wars, offers over asking, and appraisal gaps—houses are going quickly,” says Schinkel. “But there are still many great opportunities if you’re patient and have a great real estate agent and lender.”

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May 2021 Home Sales Highest Level Since 2005

The past year has been a whirlwind for the housing market in a good way. There has been a boom in sales

as seen in pending home sales up the highest level of sales for May since 2005. According to the National Association of Realtors, May 2021 was up 8% compared to April 2021 and 13% from the sales in May 2020.

“May’s strong increase in transactions – following April’s decline, as well as a sudden erosion in home affordability – was indeed a surprise,” said Lawrence Yun, NAR’s chief economist. “The housing market is attracting buyers due to the decline in mortgage rates, which fell below 3%, and from an uptick in listings.”

All four regions saw an increase in pending home sales in May. The Northeast had a 15.5% increase, the Midwest climbed 6.7%, the South rose 4.9% and the West increased to 10.9% month over month.

Although the market is still hot, weekly mortgage demand did take a 7% downturn in May 2021.

“While these hurdles have contributed to pricing out some would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases,” Yun said.

The could have stemmed from the home price increases. The S&P Case-Shiller National Home Price Index rose 14% year over year in April 2021. This increase was the largest gain in its 30-year history. The median home price has also increased which has made it harder for first-time homebuyers.

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Checklist For Getting Your Home Summer Ready

Summer is a fun time where most of us can enjoy the outdoors. When it comes to your home, you want to keep the hot summer days out. There are several things you can do to help keep cooling costs down and prevent hot-weather mishaps. Getting your home ready for the hot, humid summer days is a task every homeowner should do. According to the Good Housekeeping Institute and Trane Residential, there is a must-do summer checklist.

“Between the soaring temperatures and uptick in extreme weather, your home might have to work a lot harder this summer,” says Rachel Rothman, the institute’s chief technologist. “Plus, you want to make sure all major systems are in order before heading off on any long holidays.”

Take Care of Cooling Equipment

Many homeowners forget these important tasks, in order for your central system to work efficiently a homeowner should change the HVAC filter every 90 days. A dirty filter can send dust and dander back into your home. Worst of all a dirty filter can add stress to your HVAC system.

Your central AC system should be serviced at least once a year, preferably every season. A professional will run a range of maintenance duties that a homeowner is not able to do. Annual tune-ups will extend the life of your equipment by several years or more. A typical service will run between $100 to $300 per service.

Check the Temperature

Having a thermostat that will adjust the indoor temperature throughout the day can save tons on your utility bill. In fact, Wi-Fi-connected devices can lower cooling costs by as much as ten percent according to the U.S. Department of Energy.

Keep Humidity and Air Pollutants in Check

Bugs and other pests love humidity. Moist air creates a perfect environment for dust mites, mold, and other allergens in your home. According to the U.S. Environmental Protection Agency, a homeowner should keep humidity levels below 60%. The study concludes that ideally, a home should have a humidity level between 30 and 50 percent.

A stand-alone dehumidifier is a perfect tool to lower moisture levels in a small space such as a basement. If you live in a drier climate, then a humidifier can help put moisture back into your home's air.

Be Prepared for Extreme Weather

Summer means unpredictable weather and is a high time for storms in many areas. Storms mean power outages and for this, a homeowner should look into getting a backup generator. Storms can also wreak havoc on your gutter system so make sure they are in good working order. Clean them out and make sure the water drains properly away from your home.

FEMA suggests every homeowner have an emergency kit with 72 hours worth of supplies. Each kit should include (3 gallons per person), non-perishable food, a battery-powered or hand crank radio, a flashlight with extra batteries, a first-aid kit, dust masks, a whistle to signal for help, and a wrench or pliers to turn off utilities.

Be on the Lookout for Pests

Summer is the season for ticks, termites and carpenter ants. These insects love moist soil and rotting wood so make sure your gutter system is cleaned out and working properly. Keep things like mulch, firewood and dense shrubbery away from the foundation.

A good way to determine if you have any pests is to look for piles of sawdust along baseboards—a telltale sign of carpenter ants. Termites, meanwhile, like to shed their wings along windowsills, walls, and other entry points.

Make your home and its surroundings a negative space for insects such as mosquitoes and ticks. Remove all standing water from birdbaths, gardening pots or any other container around the outside of your home. Keep your grass mowed. Ticks love tall grass in shady parts of the yard.

Being a homeowner is a lot of work but well worth it. If you are in the market for a new home, contact your local Realtor.

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Five Things To Consider Before Buying Your Family A Home

The housing market is hot right now and there are more buyers than there are homes to purchase. The

housing market is booming right now because of the low mortgage rates and a recovering economy. It is reported that 8.3 million to 9.2 million first-time homebuyers will hit the market by 2022. Even though this is a hot market, it might not be the best time for your family to commit to owning a home. Below are several things to consider before diving into the responsibility of homeownership.

1. Pre-approval is a must.

Getting a pre-approval will not only relay the message that you are a serious buyer but will also give you an idea of how much you can spend on a home. When you are pre-approved a seller knows you are a serious contender and puts you above offers with no pre-approval.

"There are two main things a seller wants to know about buyers: Are they willing to pay my price and can they close a deal if we agree?" says Dale Taylor, a realtor in Chicago.

A good place to start is by using an online home-affordability calculator to see how much money you should be able to borrow. Once you have established this, check out several mortgage lenders in your area. It is a great idea to shop around for the best rates and mortgage offers. You not only want the best bang for your buck but you also want to choose a lender who is happy to help answer questions, trustworthy and easy to reach.

2. Do not let emotions make the decision.

You might take a tour of a listing and say it is love at first sight but that doesn't mean you need to jump right in. Look at all the features of the home from a practical point of view. A home on a hill might have awesome curb appeal but might not be the best choice for families with you kids who like to roller-skate or ride their bikes.

According to Trulia.com half of all homeowners find at least one or not more things they do not like about their current home. There might be a cute three-bedroom bungalow that you love, but it might not have any closet space or back up to a busy street. Remember, always think long-term when investing in a home.

3. A home costs more than just the mortgage.

There are many more expenses than just your monthly mortgage payment. There will be real-estate taxes and homeowner's insurance on top of your principal and interest payment. Tax Foundation states that depending on the area you live in, your property taxes will average about 1.1% of your home's value per year. If you need $250,000 worth of insurance coverage, that will be about $1,477. You will also need to add your utilities to the monthly cost.

There are also some upfront fees you will also have to consider. You will need to set aside around 2% to 5% of the purchase price for your closing costs. A local Realtor can help you through this process.

4. There is a big difference between an appraisal and an inspection.

Banks will need an official appraisal and you will need to hire a licensed appraiser. An appraiser will give the bank a firm value of the home. An inspection will let you know if this home is a reliable purchase.

A lot of times buyers will make their contract contingent on the home inspection. A home inspector has certain criteria the home must meet to be deemed satisfactory. It is always a good idea to have a professional inspector inspect the home you are about to purchase. An inspector can make sure everything is up to code before you go through with the contract.

5. Read the whole contract.

Purchasing a home is a long-term investment and one of the biggest milestones in your life. You need to make sure everything in your contract is in order. You might look at a home love it, put it under contract, close and discover they took the refrigerator. You have to make sure everything is listed in the contract. If you do not understand any wording, ask your Realtor to explain the meaning. Make sure you are comfortable with what you sign.

If you decide to go through with purchasing a home, go through a local sales agent. A Realtor can help you find the perfect floorplan that will fit your family, in a neighborhood you are comfortable in, and in the right school district.

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Another Gain In Single Family and Multifamily Permits

 

The U.S. housing market is still going strong. According to the National Association of Home Builders, the total number of single-family permits issued year-to-date nationwide reached 276,110 in March, up 25.3% over the March 2020 level of 220,416 and total number of multifamily permits issued year-to-date nationwide reached 131,227 in March, up 20.4% over the March 2020 level of 108,977.

Single-family permits were high in all four regions. The Midwest reported a 40% increase, next the Northeast with a 27.3% increase, followed by the West with a 23.9% increase and the South saw a 23.1% increase. There was also an increase in 49 states and the District of Columbia.

The highest growth rate was 300% from 20 to 80 in the District of Columbia between March 2020 YTD and March 2021 YTD. The top 10 states on the list accounted for a total of 62.8% of the total single-family permits issued. The top 10 metropolitan areas with the highest number of single-family home permits were Dallas-Fort Worth-Arlington (13,094), Houston-The Woodlands-Sugarland (12,745) and Austin-Round Rock (6,189), and two were in Florida; Tampa-St. Petersburg-Clearwater (5,219) and Jacksonville (3,391).

All four regions also saw a gain in multifamily permits in March 2021. The South reported the highest at 22.1%, the Northeast 21.3%, the West 20.3% and the Midwest 13.5% increase. During the time between March 2020 YTD and March 2021 YTD 36 states saw an increase in multifamily permits.

The highest was seen in New Mexico with an increase of 1,267.7%. The top 10 metropolitan areas with the highest number of multifamily home permits were New York-Newark-Jersey City, NY-NJ-PA (9,222), Austin-Round Rock, TX (7,359), Los Angeles-Long Beach-Anaheim, CA (6,661), Dallas-Fort Worth-Arlington,TX (5.594), Seattle-Tacoma-Bellevue, WA (5,555), Washington-Arlington-Alexandria, DC-VA-MD-WV (5,183), Philadelphia-Camden-Wilmington, PA-NJ-DE-ME (3,881), Phoenix-Mesa-Scottsdale, AZ (3,095) and Nashville-Davidson-Murfreesboro-Franklin, TN (2,888).

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Buying Your First Home, Here's the Scoop on How Much Money You Should Set Aside

 

Buying a home is a big life decision and knowing the facts before you buy can be priceless. Many buyers are shocked when they see how much money they need upfront to purchase a home. According to Unison’s 2019 Home Affordability Report, it takes buyers across the country an average of around 14 years to save for a home downpayment.

“As a general rule of thumb, experts say you should not be spending more than 30% of your income on housing expenses,” says USA TODAY Housing and Economy reporter Swapna Venugopal. “Aside from the mortgage payment, this includes costs like mortgage interest, property taxes and maintenance.”

The price of an existing single-family home rose 18.4% to $334,500 in March 2021. Here are some things you can do to achieve your goal of saving for a downpayment.

Start with savings, income, good credit

Before you even start your home search, you need to look at your finances and understand where you stand with your financial obligations. A good thing, to begin with, is how much house can you afford with your current income, how much you have saved for a downpayment, the mortgage you can qualify for, and what the local real estate market is currently doing. There are other living expenses and costs that come with owning a home. You will have annual taxes and home maintenance to pay for.

“You should have secure employment, some savings set aside, and be able to secure a good mortgage with an excellent credit score,” says Omer Reiner, a licensed Realtor and President of FL Cash Home Buyers LLC in Florida.

In order to get good rates on a mortgage, you will need good credit. It is best to check your credit score by obtaining your credit report before you start your home search. The rule of thumb says a good score is around 670 - 739. It depends on the lender, but a score closer to 700 is ideal if you’re thinking about getting preapproved for a mortgage,” Venugopal says.

The down payment

The down payment is a big part of the deal when it comes to owning a home. The down payment is a percent of cash that you pay at the closing. Usually, you need to put at least 20% of the purchase price down upfront.

If a downpayment is a concern, some government-backed loans from FHA or USDA will allow as little as 3.5% down or no down payment. If you have to put less than 20% down, then you will also have to have private mortgage insurance (PMI). Most lenders require PMI which does increase your monthly expenses.

Mortgage terms

Just like anything else, lenders are in competition and want your business. When shopping for a mortgage, ask what the rate and closing costs are. You will want to get preapproved by a lender who will verify your income and credit. A seller is more prone to choose a buyer with a pre-approval than one without.

Get a quote from several lenders for a mortgage. Have your credit reviewed for the quotes. It would be a disappointment to be told you could get a certain rate and then be given a higher rate because of your credit score.

Closing costs

The down payment is only one part of the finances you need to bring to the table at closing. Homebuyers will have to also pay closing costs which include expenses on title insurance, attorney fees, appraisals and taxes.

A homebuyer should be prepared to pay 1% to 5% of the sale price. Remember when buying a house you should also have money set aside to cover home maintenance, repairs and upgrades.

If you are in the market for a new home, call a local Realtor who can help you through the home buying process.

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Questions Homeowners Should Ask Themselves Before Downsizing

 

One of the most popular reasons to downsize is becoming empty nesters but this is not the only reason to downsize. Many homeowners just want a smaller home or move to the city into a high-rise condo. If you are considering downsizing your home for whatever reasons, making an informed decision is best. Before taking the leap, do an honest evaluation of what you feel your outcome will be if you decide to downsize. Here are several questions Realtor.com advises those who are seeking to downsize need to ask themselves.

Does it make financial sense to downsize?

Just because you downsize doesn't mean you are saving money. If you are downsizing to a condo, there will be additional condo fees that will add to your monthly expenses. Homeowner association fees for townhomes and condos usually include things such as landscaping, maintenance of common areas, trash and pest control.

“Consider the amount you will spend on these fees, and be mindful that HOAs tend to go up every year,” says Susan Bozinovic, a Realtor® with Century 21 Town & Country in Troy, MI.

Also, there are many other factors that can increase your expenses such as your new mortgage, taxes, cost of insurance, home maintenance and upgrades. You might be moving into a more expensive area of town or your smaller new home might need upgrades or renovations before moving in.

2. What are the financial implications of selling my home?

“Sellers need to be aware of how this sale affects their overall financial picture in regard to possible property tax increases or basis transfers and capital gains tax, and how that fits into their long-term financial planning,” says Wendy Gladson, a real estate consultant at Compass in Los Angeles.

You need to take into consideration other expenses that will occur when selling your home. These other expenses include local real estate transfer taxes, loan payoffs, home warranty, commission fees. You might be selling your home for $50,000 more than you paid for it but these fees will affect your bottom line.

3. What am I most excited about leaving behind?

Leaving a home that has many memories is hard. A smaller home means less cleaning and maintenance but make sure you are ready to leave your bigger house. If you dream of sitting outdoors on your patio instead of cleaning rooms that are rarely ever used then it is time to downsize.

4. Where will I park?

If you are downsizing to live in the city, then parking might be an issue. In the city, you might have to rent a space in a parking garage or park on the side of the street. This is not the only issue, if you are still moving in the suburbs, some smaller homes only have a one-car garage. It would not be fun to have to move cars each time you need to go somewhere.

5. What will I do with all my stuff?

A smaller living space will mean fewer rooms. If you currently have a home office, a gym, guest room or two living rooms then you will need to get rid of some of your furniture. Go through your stuff and determine what you want to keep. If you do not have enough space in your new home, then a storage unit might be the answer.

6. Should I consider a condo instead of a smaller house?

There are pros and cons to both a condo and a single-family home. There is less privacy in condos but you do not have to keep up with a yard. There is less maintenance with a condo but there are higher HOA fees associated with condo living.

7. Is the floor plan practical for your needs?

When you are downsizing, every square inch is a place to put your stuff. The floor plan is very important when it comes to getting the most space out of a smaller home.

8. Where do I want to move?

This is determined by several factors. If you are not yet retired then you will probably want to be close to work. Those that can work from home need to make sure to have some space for a home office.

When making a decision to move to a new city, state or country, make sure to determine if there are the services and lifestyle options you want in the new areas. A good idea would be to rent for a year in the new area to make sure that it is right for you.

9. Am I ready to downsize?

A good idea would be to take a look at homes in your desired area before you make a decision to downsize. You might envision yourself in a quaint one-bedroom bungalow but actually walking into one and visualizing you living there is the best way to determine if you could live in a smaller space.

“That’s when you’ll realize how small smaller really is. You’ll find yourself comparing what you have now to what you’ll have in the smaller home,” says ays Leneiva Head, principal broker/owner of Welcome Home Realty in Antioch, TN.

In a smaller home, you will have smaller rooms as well. You might be in a space that is more confined than you would want. Being mentally prepared for such a move is imperative. If you jump the gun and downsize without thinking through your decision, you could be making a big mistake.

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