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The 2025 Real Estate Report

Experts Predict Home Values to Increase 1.5% to 3.6% in 2025. Top housing experts and economists give a glimpse of what mortgage rates, home values and the national real estate market will do in 2025. Key Takeaways Mortgages are forecasted to remain higher for longer; but there are things you can do to lower your rate. Home values are predicted to increase incrementally on a national level; and there are projects you can do to increase your home’s value. The national market will slightly favor sellers in negotiations; however, real estate is driven by local dynamics and may favor either buyers or sellers. Note: real estate is a dynamic market and forecasts made in this article will change as the year unfolds. Mortgage Rates Will Average 6.4% in 2025 In 2023, the average 30-year mortgage peaked at 7.79% following the pandemic. Rates came down from that peak in 2024. What will mortgage rates do in the next year? The Federal Reserve is predicted to lower the federal funds rate 6 to 8 times in 2025; but mortgage rates are not set by the Federal Reserve and may not drop significantly (National Association of REALTORS®). Fannie Mae predicts mortgage rates to average 6.4% in 2025. Mortgage Bankers Association also predicts mortgage rates to average 6.4%, but with slightly higher rates compared to Fannie’s forecast. Sources: Fannie Mae Housing Forecast: November 2024 andMortgage Bankers Association Mortgage Finance Forecast: November 2024 When Will Mortgage Rates Drop Back to 3%? Historically, rates have never been as low as the pandemic era interest rates. 30-Year mortgage rates averaged between 4% and 6% during & after the housing crisis and Great Recession. A return to a 3% range is very unlikely. Source: Federal Reserve of St. Louis Tips to get a better mortgage rate… While we can’t affect the average 30 year mortgage rate, you can improve your credit and get the best possible rate. Here’s an example of recent mortgage rates by credit score: Source: myFICO.com If you’re thinking of making a move, the earlier you talk to a mortgage finance professional, the more time you have to work on improving your credit to get a better rate. Need a recommendation to a trusted lender? Send me a message. Home Values Will Increase by 1.5% to 3.6% Since 2020, the average sales price of a home has gone up by $97,000 or 29.7% (Federal Reserve of St. Louis). Which indicates homeownership to be a great investment. But, what will home values do in the next year? On a national level, home price growth is predicted to slow down from 2024. However, home prices are predicted to increase in 2025. Fannie Mae predicts home prices to increase on average by 3.6%. MBA is predicting an average increase of 1.5%. Sources: Fannie Mae Housing Forecast: November 2024 and Mortgage Bankers Association Mortgage Finance Forecast: November 2024 Home values are influenced by local market dynamics. If you want to understand what home values are forecasted to do locally, consider talking to a real estate professional. Want to increase your home’s value? Consider these remodeling projects for the highest return on investment. Will Home Values Crash in 2025? For home values to drop significantly, a major influx of homes for sale would have to hit the market. Freddie Mac estimates the U.S. housing stock is 3.7 million units below what’s needed to meet demand. It will take time to build up inventory to meet demand. Which is why a major drop in home values and prices is unlikely. Will 2025 Be a Home Buyers or Sellers Market? Who will have the advantage in the 2025 housing market, buyers or sellers? One measure of the market is Months Supply and it shows who has the advantage. Months Supply is calculated by dividing the total number of homes for sale by the average number of homes sold each month. For example if there are 500 homes for sale in a particular area and an average of 100 homes are selling each month, the Months Supply is 5 months. Here’s a chart of month’s supply going back to November of 2023: Source: Federal Reserve of St. Louis 6 Months Supply is considered a balanced market. Over 6 months supply is considered a buyers’ market. Below 6 months supply is a sellers’ market. At 4 months supply on a national level, the market slightly favors sellers. Inventory is rising nationally, however, which could shift the market to favor buyers in the next year. With that said, all real estate is local and local markets will differ in favoring buyers versus sellers. If you want to know if your area favors buyers or sellers, send me a message. What This Means for Homeowners If you own a home, you will likely see a slight increase in your home's value. If you want to increase your home’s value and enjoy the upgrades, consider making some home improvements. If you want advice on which features or projects are best suited for increasing your home’s value, consult with a professional. Tips for Potential Home Buyers If you’re thinking of purchasing a home, the sooner you start planning the better. Knowing your price range, optimizing your credit, and working towards your downpayment are steps you can take now. Even if you’re in the market to buy in the next 12 to 24 months, talking with a real estate professional early in the process will set you up for success. Tips for Potential Home Sellers Sellers need to prioritize their objectives. Is getting top dollar for your home the highest priority, is it moving within a specific timeframe? Do you have to sell a home prior to purchasing your next one? These objectives must be prioritized so that an effective plan and marketing strategy can be put into place. Thinking of making a move? Talk to a real estate professional!
Tech the Halls: Smart Home Gadgets for a Stress-Free Holiday Season

The holidays are a time for joy, family, and celebration, but they also bring added responsibilities. Between decorating, hosting, and just keeping up with your daily routines, your home can quickly start to feel more like a neverending to-do list rather than your haven. That’s where smart home technology comes in. It can help you streamline holiday tasks to focus on what matters most—spending time with loved ones and enjoying the season's magic. And there are more upsides to upgrading your home tech: doing so can also enhance the overall value and appeal of your property. Current research indicates that 77% of today’s home buyers are interested in smart homes, which results in an up to 5% increase in a property’s resale value! In general, estimates indicate that sellers who invest in smart home technologies realize a 50% return.1 So whether you're thinking about selling in the near future or just want to enjoy your home to the fullest this season, adding smart gadgets is an investment that pays off. Read on for some of the best smart home solutions to simplify your holidays (and just maybe make your home more marketable down the road, too). ENTERTAINING MADE EASY Spending time with friends and family is the highlight of the holiday season—but entertaining can be a lot of work. These tools can help turn any gathering into a celebration to remember without all of the fuss. 1. Make Cooking Easier with Digital Recipe Access Holiday cooking often means late nights and multiple trips to the store. Instead of juggling old recipe cards, let smart-home displays keep you organized with easy menu planning and grocery lists. High-end: Google Nest Hub MaxThis smart display offers an easy-to-use recipe mode with step-by-step guidance from the Google Assistant. It’s like having a sous chef right on your countertop. Mid-range: LG - 27" Smart webOS TV with Countertop DesignThis smart TV can be perched on your kitchen counter or mounted on the wall to watch cooking shows, pull up your favorite recipes, or cast content from your mobile device. Budget pick: Amazon Echo Show 8With a Food Network integration and recipe assistance, this countertop model offers plenty of features in a less-expensive package. 2. Set the Mood with Smart Lighting The right ambiance can elevate any gathering. Control colors, brightness, and temperatures remotely with these smart lighting options. High-end: Philips Hue Play HDMI Sync BoxWatching a holiday movie? Sync your smart lightbulbs to adapt their colors to what’s on the screen for the ultimate festive movie experience. Mid-range: Lutron Caseta Wireless BridgeUse this small internet-controlled device to set up automations for your smart bulbs, so you can dim all your lights at once with a swipe on your smartphone. Budget-friendly: Govee LightbulbsJust getting started with smart bulbs? This affordable option allows you to control color and brightness using your Alexa or Google Home device. 3. Amplify Your Holiday Spirit with Smart Speakers From carols to party playlists, music sets the tone for the holidays. These smart speakers will get everyone in the mood to sing along. High-end: Bose Smart Speaker 500 This powerful speaker delivers room-filling sound—and Google Assistant and Alexa are both built-in. Mid-range: Amazon Echo StudioThe best device for Amazon loyalists who care about sound, music comes through loud and clear on this speaker. Budget-friendly: Google Nest MiniThis diminutive speaker gives you voice-controlled playback at an entry-level price. TRADITIONS WITH A TWIST Decorating your home and popping on a holiday film gets everyone in the holiday spirit. These tech solutions make things easier and give you more time to enjoy the fun. 1. Watch Holiday Favorites in Style Level up your holiday movie traditions with smart projectors that turn any room in your home—or even your backyard—into a movie theater. High-end: Epson Home Cinema LS1100This 4K projector is a serious investment, but it delivers cinema-quality performance and a laser light source that won't require replacement bulbs. It's also easy to set up and adjust. Mid-range: Samsung Freestyle 2nd Gen Smart Portable ProjectorUse this feature-packed, battery-powered projector nearly anywhere—it's designed to level and focus your video automatically and to scale to the size of your space. Budget-friendly: Vankyo Performance V700WThis 1080p projector offers a bright picture, high-quality audio, and the portability to move it from room to room (plus outside). You can cast from your mobile device or plug in a computer or USB. 2. Shine Bright with Smart Plugs Tired of clambering behind furniture to get to a hard-to-reach plug for your decorations? Invest in smart plugs, and you can control all of your electrified holiday decor (plus anything else you might plug in!) easily from your phone. High-end: Meross Smart Power StripThis smart power strip includes four AC outlets plus two USB C and one USB A port. It’s compatible with Apple HomeKit, Amazon Alexa, and Google Home, and each outlet can be operated individually. Mid-range: Enbrighten Wifi Smart 2-Outlet PlugThis smart plug turns one wall outlet into two smart outlets. Control the plug using an app or with Google or Alexa voice assistants. Budget-friendly: Kasa Smart Plug Ultra MiniThese inexpensive plugs are designed to take up minimal wall space yet offer plenty of features. Plus, they’re compatible with Google and Amazon home ecosystems. 3. Create a Winter Wonderland with Smart Outdoor Lighting Whether you want to wow the neighborhood with an eye-catching display or simply add a touch of outdoor holiday charm, setting up lights doesn’t have to be a daunting task. Smart outdoor lighting makes it simple to illuminate your home’s exterior with minimal effort or planning. High-end: Govee Permanent Outdoor LightsInstall these permanent outdoor lights on your home and celebrate year-round with app-controlled color and effects options for every holiday you can think of. Mid-range: Twinkly Icicle LightsDrape your home in any color you can think of with these easy-to-use, app-controlled icicle-style lights. True to the name, there are plenty of twinkling options to choose from! Budget-friendly: Brizled Smart Christmas LightsString up these indoor-outdoor lights wherever you’d like to enjoy customizable colors and effects, or sync the bulbs with music for a truly eye-catching outdoor display. SIMPLIFIED HOME MANAGEMENT There’s plenty to manage at the holidays as it is—make things easier for yourself by automating some basic home tasks and functions. Less time spent on tedious chores means more time making memories with your family. 1. Keep Your Home Spotless with Robot Vacuums The holidays can create a lot of mess — stay on top of it with smart vacuums that clean up all of those cookie crumbs and bits of wrapping paper for you. High-end: Roomba Combo J9 PlusSay goodbye to vacuuming and mopping with this high-tech robot, which comes complete with AI obstacle avoidance to keep it from banging into your furniture. Mid-range: Roborock Q5 Max+This powerful robot vacuum is highly customizable—use the app to set up cleaning preferences like a second pass through high-traffic rooms or to block off areas you’d like left alone. Plus, it empties its own bin! Budget-friendly: Shark IonThis robot vacuum may not come with all the bells and whistles, but it does a great job keeping dirt and pet hair off the floor. You can control it with Amazon Alexa or the Google Assistant in addition to a dedicated app. 2. Manage Deliveries and Greet Guests with Smart Doorbells The holidays tend to bring a lot more people than usual to your door. Keep track of who’s coming and going, and keep your home safe with smart video doorbells. High-end: Eufy Dual+ Security Video DoorbellThis large video doorbell offers a much wider field of view than most competitors, plus high resolution and night vision. It’s compatible with both Amazon Alexa and Google Home devices and can be set up wired or wireless. Mid-range: Google Nest Doorbell CameraThis sleek doorbell camera is easy to set up and control from a distance and offers fast notifications and the ability to respond by voice or with preset messages. Advanced features include package detection and facial recognition. Budget-friendly: Arlo Video DoorbellThis doorbell offers a wide field of view, high-resolution images, and the ability to zoom in, and is compatible with multiple smart-device ecosystems. However, some of its features, like recordings, require a monthly subscription. 3. Protect Your Home While You Travel Unfortunately, the holidays tend to bring higher rates of home break-ins. Whether you’re traveling or staying local, these tech solutions can help keep your home and family safe. High-end: Ring Alarm ProRing is well-known for video doorbells, but they also offer full home security systems, complete with professional monitoring (for a monthly fee). With high-performing devices and a built-in router to ensure working wifi, this system lets you keep an eye on things no matter where you are. Mid-range: Abode Smart Security KitThis kit is designed to work with all of the major smart home ecosystems, allowing you to connect as many devices as you’d like for a seamless experience. It includes a hub device, a door/window sensor, and a motion sensor, and you can easily add on from there to customize a system to your needs. Budget-friendly: August WiFi Smart LockLots of visitors coming and going this holiday season? This smart lock upgrades your existing deadbolt, allowing you to give access to trusted family and friends. Best of all, it attaches to the lock on the inside of your door, so it won’t impact your curb appeal or draw unwanted attention. ENJOY A BETTER HOLIDAY SEASON WITH SMART HOME TECH Incorporating smart home technology can help make this holiday season more relaxing—and it can also be a great investment that adds value to your property in the long run. From energy-efficient lighting to reassuring security systems, these gadgets do more than just make life easier; they enhance your home’s appeal to future buyers. If you're curious about how upgrading your home’s tech might impact its value, we’d love to help. Reach out for a free consultation to learn more about the latest trends in smart home technology and how it can align with your real estate goals. Whether you’re looking to sell soon or simply upgrade your lifestyle, we're here to guide you every step of the way. Sources National Association of Realtors -https://www.nar.realtor/blogs/emerging-technology/smart-homes-can-help-you-grow-your-business-heres-how
Multigenerational Home Buying: How to Find a Home That Fits Your Whole Family

For many homebuyers, multigenerational living used to be considered an option of last resort: it was a route families took only when they needed to ride out a financial storm or care for ailing family members. But that mindset is on the decline: A growing number of families now say that they are embracing multigenerational living and moving in together by choice. In fact, research by the National Association of Realtors (NAR) found that the share of multigenerational home buyers rose to 14% in 2022––close to an all-time high.1 Buyers cite a multitude of reasons for choosing a multigenerational home, including saving money on living expenses, pooling resources, taking care of very young or aging relatives, and spending more time with family. "Multi-generational home buying is a way for families to care for one another, support one another, and often buy a home that may have been previously out of reach," writes Deputy Chief Economist Jessica Lautz in a blog post about the trend.1 Living with extended family has become especially popular in recent years as younger generations face higher home costs and seniors embrace aging in place. According to Pew Research, the number of Americans living in a home with at least two generations of adults has more than quadrupled since the 1970s.2 For many families, the benefits are substantial. Research shows that people who live in multigenerational homes are healthier and tend to live longer. They also enjoy more financial security. Plus, research by Pew found that people who live with relatives are more likely than not to say that it has been a positive experience.2,3 That's not to say that multigenerational living is easy: It can also be stressful––especially if you choose a home that isn't suited for a larger family. The key to making it work is to pick a home that can accommodate young and old alike without requiring you to sacrifice comfort or privacy.2,4 Here's a closer look at multigenerational living, along with tips for finding a home that's suitable for a diverse group. WHAT TO CONSIDER BEFORE SHOPPING FOR A MULTIGENERATIONAL HOME Before starting your house hunt, take the time to discuss your house plans as a family so that you're all on the same page. Have you hashed out what you're looking for in a new home? Can you agree on potential compromises? Are there any unaddressed concerns about the move? You may also find it helpful to articulate your "why" for buying a multigenerational home and how each of you might benefit. For some families, multigenerational living is all about caring for relatives and sharing responsibilities. But for others, the goal is to pool resources so that you can purchase a more desirable property or cut down on expenses, like childcare or senior living. For homeowner Jian Huang, she initially bought a multigenerational home to help her aging mother. But she says the purchase also helped her family save a lot of money on expenses––as much as $25,000 to $40,000 a year. “It makes so much sense financially and emotionally that we would not have it any other way,” commented Huang to Apartment Therapy.5 In addition to talking over your short-term wants and needs, you'll also want to weigh long-term issues that could crop up in the future, like accessibility or money concerns. For example, if some family members are nearing retirement, accessibility issues (such as extra-steep stairs or a narrow hallway) could become a problem over time. Similarly, a more luxurious home with extra amenities like a pool may appeal to buyers who have gathered a lot of cash upfront, but it may also require a bigger long-term budget for maintenance and supplies. If you haven't had these discussions yet, set a date in your calendar so that you can talk it over as a group. We can help by interviewing family members individually and advising you on what you can realistically find in today's housing market. WHAT TO LOOK FOR IN A MULTIGENERATIONAL HOME Once you've settled on what you want and need from a new home, your next step should be to jointly draft a budget so that you'll know what you can afford. To ensure that no one in your family gets accidentally overextended, think holistically when planning your new housing budget and determine what you would need to buy the home––and maintain it. In addition to budget, you'll also want to consider a home's size and what kind of layout you might need. In general, homes that offer ample space for solitude and privacy are thought to be more practical for multigenerational living––especially if there will also be young children.4 However, the ideal layout for your family and the amount of square footage you'll need to be happy long-term will also depend, in part, on family members' personalities. Some people don't mind sharing a bathroom or having bedrooms situated close to one another. But others may find that they need something more separate to relax. Different housing options to consider include: A large home with plenty of rooms and at least one or more ensuite bathrooms. A home with an accessory dwelling unit (ADU), such as a basement apartment. A multifamily unit, such as a duplex. For home buyers looking to age in place, a home that offers a separate ground-floor unit, such as a backyard ADU, could be the most comfortable (and the most practical) option, says author Sheri Koones. “It’s a way for many older people to avoid having to go into an expensive assisted living or other facility as they age,” said Koones in an interview with Realtor Magazine.6 Another possibility to consider would be a home you could add onto or retrofit into multiple units. However, building a brand-new accessory unit or renovating an existing space can be pricey. When visiting a property, we'll help you weigh potential costs and estimate whether it's a good investment. We can also connect you with a trusted contractor who specializes in renovations. HOW TO BUY A MULTIGENERATIONAL HOME Buying a home with family can be complicated––especially if you plan to jointly apply for a mortgage. However, depending on your financial resources, you may be surprised to find that it's sometimes easier to qualify for certain mortgages as a group than if you tried to go it alone.7 Talk it over with a mortgage lender or broker and ask for advice on what's best for your situation. We'd be happy to connect you with a professional who understands the nuances of co-buying. Technically, there's no limit to the number of co-borrowers you can have, but some lenders may be more lenient with their lending requirements than others. For example, most conventional lenders will only work with a maximum of four borrowers for a single loan. If you want to buy a home with a larger number of co-borrowers, you may have to look to an alternative lender.7 Your credit will also be an important factor in determining your mortgage qualifications and what you can buy, so have everyone check it as soon as possible. Pulling your credit reports and scores will not only tell you where you stand. It will also alert you to correctable issues with your credit, such as mistakes on your credit reports or too much debt on your cards.8 As you discuss your homebuying budget and strategy, jointly consider the following: Who will be on the mortgage? What about the title? Would including everyone on the mortgage be beneficial for your mortgage rate? For those who don't qualify for the mortgage or have a lower credit score, can you make other arrangements so that they can still financially contribute? Next, consider potential tax and estate planning implications of your home purchase and what might happen if some family members later decide to drop out of the arrangement.9 To ensure you make an informed decision, it's best to speak with a licensed professional. Ask us for a referral to a legal professional or an accountant who can advise you. BOTTOM LINE Multigenerational home buying has grown more popular for a reason: it's a great way to combine resources and buy a supportive home for more than just your immediate family. It can also be a smart lifestyle choice, helping reduce loneliness and promote health and well-being.10 If you're wondering whether multigenerational living is right for you, call us for a consultation. We'd be happy to walk you through potential options and help you envision your own full house. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: National Association of Realtors - https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying Pew Research Center - https://www.pewresearch.org/social-trends/2022/03/24/financial-issues-top-the-list-of-reasons-u-s-adults-live-in-multigenerational-homes/ SSM - Population Health -https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5769098/ Better Homes and Gardens - https://www.bhg.com/what-to-look-for-in-a-multigenerational-home-8409277 Apartment Therapy - https://www.apartmenttherapy.com/multigenerational-homes-37412085 Realtor Magazine - https://www.nar.realtor/magazine/real-estate-news/home-and-design/all-under-one-roof-trends-in-multigenerational-living Bankrate - https://www.bankrate.com/mortgages/how-many-names-can-be-on-a-mortgage/ Experian -https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/ Kiplinger - https://www.kiplinger.com/retirement/estate-planning-for-multigenerational-living-arrangements Institute for Family Studies - https://ifstudies.org/blog/multigenerational-living-is-it-a-solution-for-our-aging-population
Stage to Sell: 7 Proven Steps to Attract Buyers and Boost Offers

Want your home to fly off the market? 🚀 Home staging is your secret weapon! Check out our latest article for a checklist of staging steps to help win over potential buyers. 81% of buyers’ agents report staging helps buyers envision themselves living in a home.[1] Selling your home quickly and at the right price takes more than just listing it online. To attract buyers and secure top offers, your property needs to stand out. That’s where home staging — the process of strategically preparing a home for sale — comes in. Research shows that it can both increase a home's sale price and shorten the time it spends on the market. As a seller, you can choose to stage your home yourself or to work with a professional stager. Whichever option you choose, the goal is to show off your home’s best qualities and make a lasting impression. Getting ready to list your home? Here are seven essential strategies to turn it into a buyer’s dream. Declutter and DepersonalizeCreate a clean, neutral space by removing personal items, family photos, and excess furniture. Consider renting a storage unit if needed to keep things tidy while your home is on the market. Deep Clean and RepairA sparkling clean home leaves a lasting impression. Deep clean every room, paying special attention to areas like baseboards, windows, and appliances. Fix minor imperfections like chipped paint, loose tiles, and worn hardware. Pick Up a PaintbrushRepaint walls in neutral tones like beiges and off-whites to appeal to the widest range of buyers. Consider repainting outdated cabinets in white or soft gray for a modern and updated look.[2] Enhance Curb AppealMake a strong first impression with a well-maintained exterior. Power wash siding and walkways, touch up any chipped paint, and tidy up your landscaping by removing dead plants and adding seasonal color.[3] Stage Key RoomsFocus on the living room, primary bedroom, and kitchen, as these spaces are most important to buyers.[1] Arrange furniture to create an open and inviting flow, and use rugs to define spaces and add warmth. Find Your Best LightMaximize natural light by removing heavy window treatments — use sheer curtains or light-filtering shades for a softer touch. Incorporate a mix of ambient, task, and accent lighting with warm bulbs to create a warm and inviting atmosphere throughout your home.[4] PhotographyHigh-quality photos are essential in today's digital world. Hire a professional photographer to capture your staged home at its best, showcasing its features and potential. Consider using videos or virtual tours to provide an immersive experience for potential buyers. Get Started TodayReady to stage your home for a successful sale? Contact us today for a free, no-obligation consultation! We'll assess your home's unique needs, provide expert advice on maximizing its appeal, and connect you with trusted professionals who can help you achieve your selling goals. Let's work together to make your home stand out and attract the best offers! Sources: National Association of Realtors - https://www.nar.realtor/sites/default/files/documents/2023-profile-of-home-staging-03-30-2023.pdf Zillow - https://www.zillow.com/learn/how-to-stage-house-to-sell/ National Association of Realtors - https://cdn.nar.realtor//sites/default/files/documents/2023-03-remodeling-impact-outdoor-features-03-17-2023.pdf Martha Stewart - https://www.marthastewart.com/2126982/how-to-layer-your-lighting
7 Mistakes to Avoid When Hiring a Contractor

Embarking on home improvements can be both exciting and daunting. One of the most critical decisions you'll make is choosing the right contractor to bring your vision to life. However, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and subpar results. In this guide, we'll explore seven mistakes to avoid when hiring a contractor to ensure your project runs smoothly from start to finish. SKIPPING THE RESEARCH PHASE If you rush into hiring a contractor without the proper research, you risk overpaying or hiring someone whose skills and vision do not align with your needs. What To Do Instead: Conduct research to gain an understanding of best practices surrounding your project. Interview at least three contractors and ask about the processes and materials they will use. Get referrals from trusted sources. We’d be happy to share a list of recommendations! 2. CHOOSING BASED SOLELY ON PRICE While it's natural to want to save money, extremely low bids may indicate cut corners, subpar materials, or hidden costs that will surface later. What To Do Instead: Consider experience, reputation, and quality of work. Understand what's included and what's not in each bid. Remember that investing in a reputable contractor can save you money in the long run. 3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE Neglecting to check a contractor’s references or licensing could put you at risk, and without proper insurance, you may be left footing the bill if something goes wrong.[1] What To Do Instead: Request references from past jobs and call to discuss their experiences. Confirm that the contractor is licensed according to local requirements. Verify insurance, including general liability and workers' compensation coverage. PROCEEDING WITHOUT A WRITTEN AGREEMENT A handshake deal might seem friendly and straightforward, but it’s difficult to enforce and leaves room for misunderstandings about project scope, timelines, and costs.[2] What To Do instead: Have a signed contract in place before any work begins. Outline scope, materials, timeline, payment schedule, and warranty information. Don't sign anything until you fully understand and agree to all terms. 5. PAYING TOO MUCH UPFRONT Paying a large sum upfront or the full cost of the project before the work is completed can leave you vulnerable if the contractor fails to deliver.[3] What To Do Instead: Avoid contractors who demand large upfront payments or cash-only deals. Tie payments to project milestones and stick to them. Never pay in full until the project is completed to your satisfaction. 6. FAILING TO GET NECESSARY PERMITS Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences, including fines, forced removal of work, or even legal action.[4] What To Do Instead: Talk about permits with your contractor before work begins. Ensure that obtaining necessary permits is part of your contract. Make sure all required inspections are completed during the project. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED If problems arise during your project and the contractor is unwilling to address them, ignoring the issue can make the situation worse. What To Do Instead: Keep detailed records of problems and any communication with the contractor. Arrange a meeting to discuss your concerns and ask for a resolution plan in writing. Consider seeking advice from a legal professional if the contractor is uncooperative. BOTTOMLINE Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience. If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation! The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: MarketWatch LegalZoom The Washington Post Bob Vila
Top 4 Factors to Consider When Choosing Your Mortgage

Securing a mortgage can feel daunting––even to the most experienced borrowers. But don't let that deter you: If other homebuyers' experiences are any indication, odds are you'll eventually find a loan that works well for you.[1] The key to finding the right mortgage is to look for one that you’ll feel comfortable with long after you've closed on your new property. In addition to comparing term lengths and interest rates, also consider how the loan will fit your daily life and preferences. For example, we recommend asking yourself questions such as: Are you a natural risk taker, or do you prefer firm plans and predictability? Can you afford a bigger mortgage payment if interest rates increase, or are your anticipated home expenses already stretching your monthly budget? To help you get started, we've rounded up four of the most important factors to consider when narrowing your list of potential mortgage options. 1. Your Credit Score To secure a conventional mortgage, you'll typically need a FICO score of at least 620, but some mortgage types require even higher credit scores.For example, to qualify for a U.S. Department of Agriculture (USDA) loan on a qualifying rural property, you'll need a minimum score of 640. Or, if you're seeking a jumbo mortgage (home loans above $766,500 to $1,149,825, depending on where you buy), you may need a score of at least 700 or more.[2] You still have options, though, if your credit score is lower. You may be able to get a Federal Housing Administration (FHA) loan with a score as low as 500 if you have at least a 10% down payment. Some regional banks and credit unions may also be more flexible with their requirements.[3] 2. Your Income and Expenses When evaluating your creditworthiness, a lender will compare your income to the total debt you'll carry once you've bought the home.[4 This is called your debt-to-income (DTI) ratio, and it’s considered a key indicator of whether you can afford a particular mortgage. Your approval odds will be higher if you have a DTI ratio below 36%. But, if you have great credit and ample cash, you may still be able to get a conventional loan with a DTI ratio in the 45% to 50% range.[5] If not, you may need to look to other “non-conforming” loan types, such as government-backed mortgages. Lenders may also take into account other expenses unique to a home, such as property taxes, insurance, and homeowner association fees. In general, they prefer that you spend less than 28% of your income on housing or a maximum of 36% (which is the cap that federally-sponsored lenders advise).[6] 3. Your Expected Down Payment You don't have to put down 20% to qualify for a conventional mortgage, but you will need a significant amount. According to the National Association of Realtors, the median down payment amount in 2023 was 14%.[7] If your cash reserves are slim, then you may want to consider an FHA loan, which only requires 3.5% down. Or, if you qualify for a USDA or VA loan, you may even be able to buy your home with no money down except for a small funding fee.[8] Keep in mind, though, that a smaller down payment could mean a larger monthly payment. Plus, you'll not only pay more interest overall and be responsible for a larger principal, you'll also need to take out mortgage insurance. Conventional loans require private mortgage insurance (PMI) if your down payment is below 20%, while FHA loans always require insurance.[9] 4. Your Lifestyle and Risk Tolerance For most Americans, a mortgage is a decades-long commitment. So it's important to find one you can happily live with—and comfortably repay—for the long haul. Most fixed rate mortgages, for example, are designed to last anywhere from 15 to 30 years or more.[10] When you spread out your repayment over such a long period, monthly payment amounts are smaller, but you also pay more in interest. Another way to lower your monthly payment in the short term is to choose an adjustable-rate mortgage (ARM) that offers a low fixed APR for a lengthy period (typically five, seven, or 10 years) before changing to a variable rate. This can be especially beneficial if you only plan to stay in the home for a short period. But buyer beware: ARMs can be risky if you don't plan ahead for a higher interest rate.[11] BOTTOMLINE Regardless of the loan you choose, it pays to shop around and carefully compare terms. Fortunately, we have a vetted list of mortgage professionals who can explain your options, answer your questions, and help you find the best loan to meet your needs. We can also develop a custom plan for securing a great home that fits your budget. Reach out when you're ready to get started. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: Bankrate Bankrate Newsweek NerdWallet Bankrate Bloomberg National Association of Realtors Bankrate CFPB Investopedia

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