48 of the Most Clever Tips Real Estate Agents Have Shared With Us

When I was buying my first home, my mom nudged me to put in a significantly lower bid on a townhome I really wanted.

“Do that, and you’ll lose out on this home,” rebuffed my tenacious real estate agent, who was intimately familiar with the comparable properties in my neighborhood. Mom, as it turned out, didn’t know best in this instance. But my real estate agent did, and my offer was accepted. 

Great real estate agents are like the captains of your home-buying team. If I had lowballed the offer, I would have probably lost the house — and done so in an attempt to save about $10 to $20 a month over the life of a 30-year loan. 

At Apartment Therapy, we interview a lot of real estate agents on topics that range from TV placement to tips for first-time buyers. Here’s some of the best advice they’ve shared with us over the years.

On Home Finance and Budgeting

1. Your home loan could fall through if you open additional credit accounts while you’re pre-approved for a mortgage. So, hold off on opening that store credit card at the home improvement big box until after you’ve closed on your home loan.

2. Also, don’t change jobs while in the mortgage process. It could hurt your chances of securing a loan.

3. If you’re buying your first home, you probably don’t have the budget for your dream home, but you can make it yours along the way and build equity in the process.

4. A good real estate agent will not just care about how much you’re pre-approved for, but also how much you’re comfortable paying every month once you factor in things like maintenance and potential HOA assessments.

5. Bidding wars are prevalent. But to prevent heartbreak in the homebuying process, look at homes that are on the lower end of your budget so you have some wiggle room to make counter offers.

6. Zestimates have a margin of error. Your real estate agent should know the nuances of a neighborhood and be well-versed in looking at comps, or comparable homes in the area, to determine whether a home is priced correctly.

7. If you don’t have great credit, work with a mortgage broker who might be able to find some alternatives to the conventional loans offered by banks.

8. You’ll hear a lot of chatter about interest rates and inventory. But the best time to buy a home, really, is when you can afford to do so.

On First-Time Buying

9. Refrain from making much commentary about a home while you’re touring it because homeowners could be eavesdropping via smart home technology or nanny cams.

10. Talk to neighbors before buying.

11. If a home meets 85 percent of the requirements you’re looking for, make an offer.

12. Keep a poker face when you’re touring homes. If you seem too enthusiastic, you lose some of your negotiating power.

13. Don’t skip a home inspection, and ask for seller concessions to help compensate for imperfections.

14. When you’re interviewing real estate agents to hire, you want an agent who doesn’t shy away from hard conversations.

15. Take a look at the home’s floors; they tell you a lot about how well the property has been cared for and its condition.

16. Don’t get too overly attached to a listing, because it can prevent you from making good business decisions.

17. Real estate agents want you to have a pre-qualification letter; it sets you apart from the  looky-loos who aren’t serious about home buying.

18. Don’t use the bathroom at open houses. 

19. An escalation clause can help you win in a bidding war without going over your budget.

20. Pay attention to the seller’s disclosure. This document spills the tea on past problems, like leaks or pest problems, that buyers should know about.

21. Don’t want photos of your home’s interior floating around online after you’ve moved in? You can ask the listing agent to take them offline.

22. HOAs are notorious for having some ridiculous rules, so make sure to read them before signing on the dotted line. Still, many of those rules can actually help protect your home’s value.

On Design

23. While trendy, barn doors can pose some significant livability challenges: They lack sound reduction, can be hazardous if you have kids and the rustic farmhouse look will clash with modern design elements in your home.

24. Natural lighting is great in a bathroom — you should seek this out. But if there aren’t any windows or a skylight, you could always add some lighting next to the vanity.

25. Floor-to-ceiling windows may be beautiful, but be prepared to pay for expensive, custom-made window coverings and special heat-protecting blinds.

26. Neutrals and calming colors are better in a bedroom than bold, bright colors, but you should really do what you like because the paint color in your bedroom has no sway on a home’s selling price.

27. Updating the hardware in a bathroom can go a long way, and doesn’t require new plumbing.

28. Instead of painting your cabinets (which can be quite time consuming) switch things up with a tiled backsplash, which can often complement older finishes.

29. Color-matching paint can be tough. If you love the shades that are in a home you’re buying, ask the sellers to jot down the paint colors they used. They also may have contractors they’ve hired that are familiar with the property.

On Home Staging

30. Busy backsplashes, dim lighting, and pots and pans hanging from the ceiling above a center island will make your kitchen look and feel smaller.

31. TV placement is based on personal preference, but if you’ve got a clunky old TV, it’s best to take it down before showings.

32. Buyers fancy a finished basement, but wood paneling and carpet in this area can date the subterranean space.

33. Loud paint colors, whether on the walls or cabinets, can deter buyers.

34. During the pandemic, kitchens, closets, and dining rooms started doubling as offices. But repurposed rooms can actually deter buyers, especially if they want to think of their bedroom as a place of relaxation and see an office set up in the closet.

35. Have a musty basement? Try a product called DampRid to help absorb the moisture and eliminate the funky smell.

On Selling

36. Buyers want to smell fresh air when they tour your home; not any artificial scents from candles or air fresheners. 

37. Selling a home is an emotional process, but don’t let your love for your home cause you to price it higher than the market dictates.

38. Whether you’ve got broken-down appliances or have noticed water spots indicative of a leak, real estate agents want you to disclose any and all defects to them. 

39. If the listing photos show your home staged, make sure that’s the way your home looks during showings.

40. Despite how easy and fun it looks on TV, the fix-and-flip process is much more difficult IRL.

41. The number nine can be your friend. Pricing a home at $499,000, for instance, can feel like a bargain and it will attract buyers who set their upper limit at in the 400s versus the 500s.

42. Certain characteristics can subtract from your home’s value. Some notorious comp killers include having a home that backs up to a landfill or highway. 

On Curb Appeal 

43. Boxwood shrubs and border hedges are outdated when it comes to curb appeal.

44. Neutral and natural colors are the best colors to paint your house.

45. The formula for great curb appeal includes a good pressure washing on the home’s sidings, plus giving your front door a fresh paint job, putting out a welcome mat and adding some flowers or  plants. 

46. A storm door makes your home less inviting. 

47. Your garage door is a major part of your curb appeal, and buyers notice things like oil stains, shabby doors, and squeaky hinges.

48. Lamp posts are charming — and are once again popular with homeowners.

Learn more at ApartmentTherapy.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Millennials Collaborating to Buy Property - Would You Buy with a Friend or Three?

The affordability issues in the housing market aren’t going away for younger buyers.

The financial challenges hindering millennial homeownership have been well documented between overwhelming student loan debt and record-level home prices. However, some within the cohort are carving their own path to the American dream through teamwork.

“Affordability is a key issue for young buyers or first-time homebuyers entering into the market with limited housing inventory, so pooling incomes with a roommate becomes a really good solution for many buyers to be able to enter into the housing market,” says Jessica Lautz, vice president of Demographics and Behavioral Insights for National Association of REALTORS® (NAR).

Recent data from ATTOM Data Solutions, reported by the Wall Street Journal, suggests that the number of home and condo sales across the country by co-buyers has soared since millennials became the largest share of homebuyers in the U.S. in 2014.

The number of co-buyers with different last names increased by 771% between 2014 and 2021, according to ATTOM.

Like other market trends, the pandemic accelerated the trend, according to Lautz, who also suggests that declining marriage rates among younger generations have also contributed.

Despite the generational lull in nuptials, that hasn’t kept buyers, particularly millennials, from pursuing homeownership. Based on NAR’s recently released 2021 Profile of Home Buyers and Sellers report, for the third consecutive year, the share of unmarried couples that purchased a home accounted for 9% of the buyer pool.

According to NAR’s data, the share of first-time buyers who were unmarried couples rose slightly to 17%.

Navigating the Trend

While co-buying isn’t a novel concept in real estate, experts and agents told RISMedia that it’s a worthwhile trend to keep an eye on, as affordability issues and student loan debt plague millennials—the largest cohort of buyers in the market.

Along with working as an agent, Nicholas Ritacco is also a co-buyer. The New York-based Corcoran agent teamed up with his roommate to buy their first home during the pandemic to escape renting.

Looking at the numbers, Ritacco says low mortgage rates since 2008—and record lows during the pandemic—presented an opportunity to finally tap into homeownership while living in or near more major metro areas.

“The affordability is in our favor, and it is time-sensitive, whether it’s two, three or five years down the line, no one can predict, but I can tell you every point we go up is pricing out somebody,” he says.

Compared with traditional buyer scenarios, Lautz suggests that agents work with their co-buying clients to identify long-term intentions for the property they are looking to buy and how they will address any life changes.

“If someone gets a job on the other side of the country, are you going to rent the room that the roommate has been living in?” Lautz asks.

Discussion over income between the clients is also essential, as Lautz notes that will become an issue when it comes time to divvy up the down payment and closing costs in very similar ways, so they are earning equity in the same way.

“Questions like that may get into the nitty-gritty, but I do think it’s important for keeping that relationship and the home-buying transaction on track as well about what is realistic and what may not be realistic.”

Having gone through it himself, Ritacco says that he also started working with friends that want to partner up to buy a home.

Part of his guidance strategy is helping his clients identify their “exit strategy” before going into a co-buying partnership. This typically involves determining how long they intend to live in the property and how they want to approach selling or renting it out when one or more parties is ready to move.

“You have to understand what your options are and what your rights are,” he says, noting that he gets “granular” with his clients when working out the details so that each party is comfortable entering into the deal from the beginning.

“It’s really about understanding every step of the process and what is expected of everybody,” Ritacco says. “It’s a joint venture. You’re just changing it from that typical investment-focused agreement to adopting it for a joint venture for a primary.”

According to agent Kate Wright at Better Home and Gardens Real Estate Metro Brokers in Atlanta, Georgia, taking a deep dive into buyer goals and expectations during an opening consultation is a helpful tool to mitigate future issues.

“That way, I know what they are looking for and what their goals are, and I can direct them toward the best avenue for pursuing the purchase,” Wright says, adding that her market has been popular among millennial buyers because of its affordability.

Wright’s pool of millennial co-buyers have already bought their first home and have joined friends to start investing in other properties.

While she admits that her pool of first-time buyers co-buying is negligible in her market, broker Shonna Peterson at the Warmack Group with Keller Willams in Seattle says that the trend is popular with the millennial investment group.

Peterson notes that investor buyers’ motivation focuses more on the numbers and turning a profit rather than living in the home primarily.

Despite the difference in approaches and desired outcomes, Peterson indicates that managing emotions is essential to navigating millennial investors.

“While they have a great grasp on the numbers, there does still tend to be an emotional component just because it’s human nature to get somewhat competitive when you know that the competition is stiff,” Peterson says.

Legal Protection

While the trend of co-buying opens doors to homeownership, it’s not without its challenges, which is why agents told RISMedia that they encourage their clients in co-buying situations to speak with legal experts.

Real estate attorney Edwin Farrow recommends hashing things out in writing before closing on a home when it comes to co-buying partnerships.

“What they’ve done is create a partnership, and partnerships can go bad,” Farrow says. “You need to know what happens in the event the partnership is dissolved, keeping in mind the fact that the bank doesn’t care that you’re friends and agreed to whatever you agreed to.”

Farrow’s co-buying clientele typically consists of unmarried couples and family members teaming up to buy homes together. He indicates that getting a better understanding of the risks and benefits of teaming up to buy a property together is vital for any buyers looking to take this route toward homeownership.

Eric Smith, a real estate attorney with Timoney Knox in Fort Washington, Pennsylvania, echoed similar sentiments, adding that the biggest problem that he notices among co-buyers is that many tend to bypass getting a written agreement before closing on their home.

If the partnership doesn’t end amicably, Smith says a written agreement could save buyers “tens of thousands of dollars in attorney fees” if their friendship or relationship dissolves and they end up selling the property.

“In the end, it will be costly to prove that the person who paid the down money is entitled to get it all back or any of it back,” he says.

By default, Smith says tenants in common (TIC) is the route that clients take. The option gives each property owner an “undivided interest of the whole thing in equal shares.”

“It essentially means that each owns a slice of the pie,” Smith says, adding that shares can be passed on to an heir in the event of a death.

A joint tenancy with the right of survivorship is another route, Smith explains, noting that each partner owns the whole property together, and the last of them to die would keep everything.

“You could also imagine a circumstance where you might have a number of people who buy a piece of property as legitimate business partners,” Smith says.

He thinks the best option is to buy with an entity—like a limited liability company—so parties can have an operating agreement for the property.

“It just makes it easier to manage,” Smith opines.

Keep reading!

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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So Many People Moved for Their Pets in the Past Year - Would You?

Here’s how to re-create it in whatever home you buy.

When you’re shopping around for a new home, you don’t just have to take your own likes and dislikes into consideration—your pet’s interests matter, too. We want our four-legged friends to be able to get around the house (or yard) with total ease, which can narrow down the options. According to a survey of 1,600 homeowners from Homes.com, 68 percent of people who weren’t already living in a pet-friendly place said they have moved for the sole purpose of accommodating their furry pals in the past year. And more than half of the respondents admitted they’ve dropped plans to purchase a property because it wasn’t a good fit for their companions. 

So what if you stumble across your dream house—top-notch range, walk-in closet, tiled shower—but it’s not necessarily 100 percent compatible with your dog or cat? Before you walk away in search of more square footage, hardwood floors, or a mudroom, remember that these small renovations can make everyone feel a little more at home.

The Discreet Doggie Door

Swap the usual plastic flap for a hand-welded steel door with one operable panel at the bottom. Designer Sherry Hart created this stylish option that features surface bolts that allow the owners to lock or unlock the door and leave it open so their pets can exit the wet bar–slash–laundry room and run out to the pool when they please.  

The Claw-Friendly Climbing Wall

In an effort to accommodate their Bengal cat Miss Cleo’s adventurous nature and love of heights, Caitlin Mociun and Tammer Hijazi constructed a system in their living room made from IKEA Lack shelves and sheepskin throws. Bonus: If she ever tires of climbing down the road, the platforms can be used for books.  

The Low-Maintenance Yard

You don’t need a palatial grass-covered backyard in order for your pups to enjoy being outdoors. Leave the greenery to the walls like Whitney Leigh Morris did at her tiny bungalow and embrace easy-to-hose-down gravel that’s urine-proof instead. Her lower-energy pooches spend their days lounging on the stain-resistant couch anyway.

Subscribe to Domino Magazine. Photos courtesy of Domino.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Homeownership Rate Increased During the Pandemic, According to the U.S. Census

• The Q2 2020 U.S. homeownership rate was 67.9%, up from 64.1% in Q2 2019 and up from 65.3% in Q1 2020, according to the U.S. Census Bureau.

• The homeownership rate among the age group 35 to 44 increased 4.9 percentage points during the second quarter to 64.3%. This age group experienced the highest gains in homeownership in the second quarter of the year.

• All regions saw an uptick in homeownership rate. The South was the region with the highest gains in homeownership, where it climbed to 71.1%.

• Both rental and homeowner vacancy rates dropped ­in spring showing how strong housing demand is during the pandemic.

The Census Bureau released the Residential Vacancies and Homeownership report for Q2 2020.  According to the release, the homeownership rate increased to 67.9% by nearly 4 percentage points compared to a year earlier1. Low mortgage rates is one of the main reason that the homeownership rate was strong in the second quarter although the coronavirus outbreak.

In addition, the report looks deeper at trends among households with incomes below the national family median, which was nearly $77,000 in 2018. It is interesting to see that homeownership in this group also increased in the second quarter to 55.2% from 50.0% a year earlier. This is a very promising indicator for the real estate market. Compared to pre-recession levels, more low-income households became homeowners during the pandemic.

Homeownership Trends by Age

Homeownership rates rose in all age groups in the second quarter of 2020. Specifically, these gains continue to be concentrated among Millennial and Gen Xer households, though the share of seniors who own their home remains the highest of all age groups.

See the homeownership rate by age group:

Homeownership Trends by Race/Ethnicity

Black homeownership rates continue to increase, elevating their share of households living in owner-occupied units to 47%. Specifically, Black households experienced the highest gains in homeownership rates among any other race. The homeownership rate increased by 6.4% from 40.6% in Q2 2019 to 47% in Q2 2020. In comparison, homeownership rates for White households increased 2.9% in Q2 2020 compared to a year earlier. However, the gap in homeownership rate between White and Black households remains nearly 30 percentage points.

See here the homeownership rates by race/ethnicity:

This was one of the most anticipated reports since it reflects the impact of COVID-19 on housing demand. However, there are some serious questions about the accuracy of this survey. It is likely the results in the second quarter are distorted by the pandemic. Specifically, in-person interviews were suspended for the duration of the second quarter and replaced with telephone interview attempts when contact information was available. As a result, the response rate was lower in this report than the average response rates for April, May, and June 2019. Thus, the current report might show the trend, but we should exercise caution when using the absolute numbers of homeownership rates.

1 This is the non-seasonally adjusted figure for the homeownership rate. Homeownership rate increases by 0.01% on average between the first and second quarters of the year.

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Older Millennials Are Making This Huge Housing Mistake

Overspending on housing is a trap many older millennials fall into.

Housing is the typical American's largest monthly expense -- but it's a cost that should still be kept in check. As a general rule, it's a good idea to keep housing costs at or below 30% of your take-home pay. Doing so should, in theory, free up enough money for other expenses and keep debt out of the picture.

For renters, that 30% is pretty simple to calculate -- it's the cost of rent. For homeowners, that 30% includes a monthly mortgage payment, property taxes, and homeowners insurance.

But older millennials may be having a hard time staying within these guidelines. According to a recent survey conducted by The Harris Poll on behalf of CNBC Make It, the average older millennial (ages 33 to 40) spends a median amount of $1,200 a month on housing costs. But workers in that age group only take home about $3,200 a month. This means the typical older millennial is spending more than the recommended 30% of income on housing -- and is risking serious debt in the process.

Are you overspending on housing?

Let's be clear -- in some markets (like New York City and San Francisco), it's pretty much impossible to keep housing costs to 30% or less of your income. But in many parts of the country, it is doable, and if you live in one of those areas, you'd be wise to stick to the 30% rule.

If you overspend on housing month after month, you could risk falling behind on other financial goals, like saving for retirement. You might also put yourself at risk of racking up debt if you need to charge other expenses on a credit card.

That's why you may need to reconsider your housing situation if you're spending well above the recommended 30% of your income. If you're a renter, you can look at downsizing or moving neighborhoods once your lease expires. Though you'll spend some money to transport your belongings from one home to the next, you may be able to do so relatively cheaply -- especially if you don't have a ton of furniture and have a couple of friends with pickup trucks who can help you out.

If you own a home, shedding your housing costs is a lot more complicated. One option may be to appeal your property taxes if you feel your home is overvalued. Each year, you'll get an assessment notice telling you what your property is worth. Your property tax bill is calculated by taking your home's assessed value and multiplying it by your local tax rate. If you can lower that assessment, your tax bill should shrink. You can also try shopping around for a better deal on homeowners insurance.

Finally, you can see if refinancing your mortgage will save you money. If you can lower the interest rate on your home loan by a decent amount, it could result in smaller monthly payments -- and more money left over to cover your other bills.

If you're currently in the market to buy a home, you have a solid opportunity to avoid falling into the trap so many older millennials have landed in. To get started, you can use a mortgage calculator to figure out how much house you can afford without exceeding that 30% threshold. Though there are some exceptions to the 30% rule, for the most part, it's a good guide to follow. If you manage to keep your housing costs low from the start, you can avoid some of the financial problems so many of your peers have likely already faced.

A historic opportunity to potentially save thousands on your mortgage

Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.

Follow the Motley Fool for more information like this.

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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