Yajnesh Rai

3 Bathroom Trends Homeowners Might Want to Avoid | Realtor Magazine

Bathroom makeovers can help enhance a property, but homeowners should be careful not to be too trendy or it may have the opposite effect. HouseLogic detailed several recent bathroom trends that homeowners might want to reconsider, including:

Tiny tiles

Mosaics of tiny colored tiles may be on-trend and offer a retro vibe to your bathroom, but they’ve also earned a reputation as being a pain to keep clean. Tiny tiles mean more grout to clean and maintain. Instead of doing a large space of tiny tiles, HouseLogic recommends using them as an accent, such as the wall surrounding your vanity. Choose a place where they won’t get wet on the floor, in the tub, or in the shower so that cleaning them is less of a chore.

Hardwood floors

The flooring may be a hot choice for the rest of your home, but they can be a pain in the bathroom. “It will warp next to a shower or tub if not dried after each use,” Tanya Campbell, a designer for Virdis Design Studio in Denver, told HouseLogic. “Also, tile is more sanitary.” If the wooden look is what you want, opt for something that resembles the exterior, but is actually tile.

Colored tubs and sinks

Color is gradually entering more bathrooms. But don’t forget the lessons from the 1950s pastel bathroom craze that brought in pink and aqua sinks. That had renovators ripping them out a few years later in favor of white, a safer choice for the long term. “The bathroom is one of the most expensive rooms in the house to do, and so I try to be very safe because the parts are going to be expensive to change out—like a tub,” Suzanne Felber, a designer in Dallas, told HouseLogic. If color is what homeowners want, opt for painting the walls instead; it’s easier to change later on.

What a New-Home Warranty Really Covers | Realtor Magazine

A new home will often come with a warranty from the builder, but that doesn’t mean the builder is on the hook for anything that breaks. Warranties differ from builder to builder, but they typically cover only specific features such as:

• Concrete foundations and floors
• Clapboard and shingles
• Carpeting
• Thermal and moisture cover
• Waterproofing
• Insulation
• Roofing and siding
• Doors and windows
• Garage doors
• Plumbing
• Electrical
• Heating and cooling
• Septic system

Builder warranties usually last anywhere from six months to two years. Some last up to 10 years to cover “major structural defects.”

However, many builder warranties do not cover:

• Household appliances
• Shrinkage or expansion of the house
• Shrinkage of joints and minor cracking
• Insect damage
• Dampness or condensation caused by inadequate ventilation

“A builder warranty can give a false sense of security to home buyers, so you need to be careful,” says Robert Pellegrini Jr., president of PK Boston, a real estate law firm in Massachusetts. Pellegrini recommends that a real estate attorney look over the sale contract. “It’s a significant negotiation; the builder wants to be responsible for essentially nothing, and it’s in the buyer’s best interest to have the builder on the hook for as much as possible,” he says.

Pellegrini says it’s important for new-home buyers to know the length of the warranty and what’s included and to learn how to notify the builder if something goes wrong during the warranty period. He says the biggest issue with warranty coverage is the cause of the problems the homeowner wants the builder to cover. “Was the damage due to neglect during building or to misuse by the homeowner?” Pellegrini says.

How Much More Buyers Are Paying for a Mortgage | Realtor Magazine

Higher mortgage rates and rising home prices are making housing more expensive for homeowners this year compared to last year. In San Jose, Calif., for example, the average homeowner is paying $500 more for monthly mortgage payments than a year ago, jumping from $4,100 to $4,600, according to a new analysis by Bloomberg.

In nearly one-third of metro areas, buyers paid an average $50 hike in monthly mortgage payments in the first quarter of the year. The cities seeing the fastest increases in mortgage payments, according to the Bloomberg study, are:

• San Francisco
• Seattle
• Portland, Ore.
• Jacksonville, Fla.
• Bridgeport-Stamford-Norwalk, Conn.

Renters are facing steep hikes in costs, too. Researchers found that more than 10 percent of all metro areas analyzed saw rents rising faster than inflation. Eight of the top 20 priciest markets are in California, with San Jose, San Francisco, and Los Angeles making the top three.

“By many metrics, the U.S. housing market in 2018 is on sound footing,” says Chris Herbert, managing director of the Harvard Joint Center for Housing Studies. But “in many respects, the situation has worsened for both the lowest-income Americans and those higher up the income ladder.”

In the first three months of 2018, home and rental prices in more than one-fifth of metro areas took more than 30 percent of a household’s income. In nine metro areas, aggregate housing costs comprised 50 percent of income (eight of which were located in California).

The Do’s and Don’ts of Home Equity Loans

Home equity burning a hole in your pocket? You may want to think twice about that boat.

Home equity is a valued resource, and if you have it, you might be tempted to tap that wealth for other purposes. A home equity loan, which allows you to use your home’s equity as collateral, is a great way to do this. But depending on your personal situation, it may not be the right thing to do.

Here’s when a home equity loan makes sense — and when it doesn’t.

DON’T: Fund a lifestyle

Remember when homeowners yanked cash out of their homes to fund affluent lifestyles they couldn’t really afford? These reckless borrowers, with their boats, fancy cars, lavish vacations and other luxury items, paid the price when the housing bubble burst. Property values plunged, and they lost their homes.

Lesson learned: Don’t squander your equity! Look at a home equity loan as an investment — not as extra cash when making spending decisions.

DO: Make home improvements

The safest use of home equity funds is for home improvements that will add to the home’s value. If you have a one-time project (e.g., a new roof), then a home equity loan might make sense.

If you need money over time to fund ongoing home improvement projects, then a home equity line of credit (HELOC) would make more sense. HELOCs let you pay as you go and usually have a variable rate that’s tied to the prime rate, plus or minus some percentage.

DON’T: Pay for basic expenses or bills

This is a no-brainer, but it’s always worth reiterating: Basic expenses like groceries, clothing, utilities and phone bills should be a part of your household budget.

If your budget doesn’t cover these and you’re thinking of borrowing money to afford them, it’s time to rework your budget and cut some of the excess.

DO: Consolidate debt

Consolidating multiple balances, including your high-interest credit card debts, will make perfect sense when you run the numbers. Who doesn’t want to save potentially thousands of dollars in interest?

Debt consolidation will simplify your life, too, but beware: It only works if you have discipline. If you don’t, you’ll likely run all your balances back up again and end up in even worse shape.

DON’T: Finance college

If you have college-age children, this may seem like a great use of home equity. However, the potential consequences down the road could be significant. And risky.

Remember, tapping into your home equity may mean it takes longer to pay off the loan. It also may delay your retirement or put you even deeper in debt. And as you get older, it will likely be more difficult to earn the money to pay back the loan, so don’t jeopardize your financial security.

Mortgage Rates Continue to Slide This Week | Realtor Magazine

 

 

Mortgage rates were mostly in a holding pattern this week, but still eked out the first increase since early June.

Overall, mortgage rates this summer have been dropping the past few weeks after sharp rises this spring. “A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits,” says Sam Khater, Freddie Mac’s chief economist. “This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective home buyers the financial wherewithal to resume their home search.”

Freddie Mac reports the following national averages with mortgage rates for the week ending July 12:

• 30-year fixed-rate mortgages: averaged 4.53 percent for the week, up from last week’s 4.52 percent average. Last year at this time, 30-year rates averaged 4.03 percent.
• 15-year fixed-rate mortgages: averaged 4.02 percent this week, up from last week’s 3.99 percent average. A year ago, 15-year fixed-rates averaged 3.29 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.86 percent this week, down from 3.74 percent a week ago. A year ago, 5-year ARMs averaged 3.28 percent.

4 Costly (and Dangerous) Pool Care Mistakes | Realtor Magazine

A pool can be a selling point for a home, but proper care is key. Some homeowners could be going about their pool maintenance all wrong, which could result in costly leaks or even skin irritations to those who jump in. An article at realtor.com® recently highlighted some common slip-ups, including:

Using the wrong chemicals
Mixing the wrong chemical balance can cause eye and skin irritation and deteriorate the materials in the pool, which can lead to leaks. “The biggest mistake that pool owners make is not putting in the proper chemicals,” Craig Cohen, president of Treasure Pools & Service in West Palm Beach, Fla., told realtor.com®. Experts urge owners to take a sample of their pool water to a local pool store—even on a monthly basis—for an analysis to determine which chemicals they’ll need to adjust.

Failing to clean the filters
Cohen suggests cleaning the filter once a month. He also recommends having two filters so the pool never goes without a clean one.

Only servicing the pool when it’s hot
A pool will likely need year-round service. A professional checkup in the spring, for example, will inspect the pool for pipe damage and tears in the pool liner to ensure there was no damage from the colder winter months. In the fall, owners will likely want to have their pool winterized, which means ensuring all the water has been removed from the pipes to avoid a breakage if the water freezes.

Not putting up a fence
Fences around a pool can be important to keep animals out of the water. Note that fences are likely mandated by the state. This can vary dependent on the area, but many local governments require a 4-foot fence around the pool.

Homeowners Have Record Amounts of Unused Equity | Realtor Magazine

Home prices are rising and making homeowners richer. But the number of home equity lines of credit are barely budging.

The overall equity that was tapped in the first quarter of this year was 1.17 percent, the lowest amount in four years, according to Black Knight, a mortgage software and analytics firm.

Many homeowners may not realize how rich in equity they really are. “I think the typical American doesn’t have that level of awareness; they’re not probably studying the numbers,” Ben Graboske, executive vice president of Black Knight’s Data & Analytics division, told CNBC.

The amount of tappable equity rose by 7 percent in the first quarter of this year compared to the previous quarter, according to a new report from Black Knight. That marks the largest single quarter increase since Black Knight began tracking such data in 2005. Collective equity is up 16.5 percent compared to a year ago. Black Knight computes the collective amount of tappable equity by taking the appraised value of a home minus the 20 percent most lenders require borrowers to keep as a safety net.

Homeowners have a collective $5.8 trillion in tappable equity, which is 16 percent higher than the last home price peak in 2006, according to Black Knight. The average homeowner with a mortgage has seen an increase of $14,700 in tappable equity over the past year and has $113,900 available to draw, according to the report.

HELOCs have variable interest rates, and that may be one thing spooking homeowners from drawing from their equity. For owners who do take equity out, they’re more likely to use cash-out refinances and not HELOCs. Those tend to carry higher interest rates but they don’t have a variable rate of HELOCs.

“Who wants uncertainty when it comes to monthly finances,” Graboske said to CNBC. “I think a lot of Americans look at, what are my payments? What is my income coming in and what are my payments going out? They want certainty that they can cover their costs and not worry about it.”

4 Common Regrets of Buyers With Kids | Realtor Magazine

Home buyers with children are scouring properties looking for high-level items on their checklists, such as good schools and a room for a nursery. But some parents may later regret overlooking other factors in choosing the right home for their family. Realtor.com® recently featured an article for parent clients looking to buy and those overlooked factors they’d likely want to consider, including:

Bedroom placement

Parents may size up rooms but could fail to carefully consider the layout of the home and how it will work for them. Realtor.com®’s Cathie Ericson notes her regret from purchasing a home where the master suite was on the main floor and the nursery was upstairs. “While parents know to find a house with ample bedrooms for their kids, what they sometimes fail to factor in is where those bedrooms are,” writes Ericson. “Many parents prefer a layout where their kids’ bedrooms are fairly close to their own, since it keeps their kids within earshot at night. However, bedrooms on separate floors can work for parents who prefer a bit more privacy.”

The neighbors

It’s important to check out the neighbors who will be living next door and make sure the surrounding area is appropriate for a family. Ericson suggests checking The National Sex Offender Public Website to determine if any sex offenders are in the neighborhood.

View of the backyard

Parents may want to assess how well the line of sight is from the backyard to the inside of the home. Can they cook or clean while looking out at their children playing outside? While parents work from the study, can they see where their kids are playing? If parents don’t want to go outside with their kids each time, this may be important to emphasize, too.

Outside safety

Some parents will avoid homes on busy streets, but another outdoor factor that parents may overlook when home shopping is sidewalks, says Billy Rose of The Agency in Beverly Hills, Calif. “Sidewalks invite you to go for a family walk,” says Ali Wenzke, author of the book The Art of Happy Moving. “That’s the perfect place to set up a lemonade stand, and they make an ideal canvas to show off your mad art skills with sidewalk chalk.”

Study: Homes With Farmhouse Design Fetch Premium | Realtor Magazine

Homes decorated in the farmhouse style—think industrial-sized sinks, cabinetry fronted in chicken wire, and sliding barn doors—are quickly gaining favor with potential buyers and selling for significantly more than properties in other styles. Listings with descriptors such as “barn doors,” “exposed beams,” and “free-standing tubs” tend to fetch prices up to 30 percent higher than other homes, according to research from RealEstate.com. A listing that boasts a “farmhouse sink” in the entry-level and luxury price points could see a 26 percent and 16 percent premium, respectively.

Chip and Joanna Gaines, former hosts of the HGTV show “Fixer Upper,” are widely credited for making farmhouse decor mainstream. The Wall Street Journal dubs the trend “farmhouse fever.” “‘Urban farmhouse’ is a safe choice that appeals to a wide audience,” Lisa Gabrielson, an interior designer in Johns Creek, Ga., told the Journal. She says 90 percent of her new projects have a farmhouse style.

Homebuilders also are jumping on the trend. Construction company Pulte Group says many of its model homes now reflect a farmhouse look, including one of its Las Vegas-area developments, which offers properties with board-and-batten siding, wood beams, and barn lighting. Imagine Homes, another builder, features shiplap, stone walls, and a desk that looks like a butcher block in its model homes in San Antonio. Toll Brothers has introduced modern farmhouse exteriors in several of its communities in Virginia, as well as an “urban farmhouse”-styled home in a new development just outside Washington, D.C.

However, some designers are concerned that the farmhouse style’s popularity may fade quickly. “I do worry about market saturation. … It’s starting to be commonplace,” Gabrielson says. She predicts that the next big decor trend will be “California cool,” which tends to feature bleached floors and warm, light brown accents.

June’s Hottest Housing Markets Offer Some Surprises | Realtor Magazine

Californian cities no longer dominate realtor.com®’s top-performing housing markets list as they have for the past six years. Instead, higher home prices may be prompting more home buyers to look elsewhere.

Overall, home prices nationwide continued to escalate in June, with the median listing price nationwide at $299,000, a 9 percent year-over-year increase, according to realtor.com®. The higher home prices are prompting more buyers to face affordability issues, says Javier Vivas, director of economic research at realtor.com®.

“We’re seeing interest and money shift away from the overheated markets into less expensive secondary markets,” he says.

The top metro in realtor.com®’s hottest housing market list for June was Midland, Texas. Realtor.com® researchers rank cities each month based on which metros are garnering the most visitors online at listings and where homes are selling the fastest.

© National Association of REALTORS®

 

The hottest housing markets in June, according to realtor.com®, were:

1. Midland, Texas
2. Columbus, Ohio
3. Boston
4. Fort Wayne, Ind.
5. Boise City, Idaho
6. San Francisco
7. Vallejo, Calif.
8. Buffalo, N.Y.
9. Colorado Springs, Colo.
10. Detroit
11. Racine, Wis.
12. Grand Rapids, Mich.
13. Sacramento, Calif.
14. Rochester, N.Y.
15. Kennewick, Wash.
16. Stockton, Calif.
17. Dallas
18. Worcester, Mass.
19. Spokane, Wash.
20. Santa Cruz, Calif.