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Should You Rent Out or Sell Your House?

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Figuring out what to do with your house when you’re ready to move can be a big decision.

Should you sell it and use the money for your next adventure, or keep it as a rental to build long-term wealth?

It’s a question many homeowners face, and the answer isn’t always straightforward. Whether you’re curious about the potential income from renting or worried about the responsibilities of being a landlord, there’s a lot to consider.

Let’s walk through some key questions to ask to help you make the best decision for your situation.

Is Your House a Good Fit for Renting?

Even if you’re interested in becoming a landlord, your current house might not be ideal for renting. Maybe you’re moving far away, so keeping up with the ongoing maintenance would be a hassle, the neighborhood isn’t great for rentals, or the house needs significant repairs before you could rent it out.

If any of this sounds like it might apply, selling might be your best option.

Are You Ready for the Realities of Being a Landlord?

Managing a rental property isn’t just about collecting rent checks. It’s a time-consuming and sometimes challenging job.

For example, you may get calls from tenants at all hours of the day with maintenance requests. Or you may find a tenant causes damage you have to repair before the next lease starts. You may even have to deal with people falling behind on payments or breaking their lease early. Investopedia highlights:

“It isn’t difficult to find horror stories of landlords troubled with more headaches than profits. Before deciding to rent, consider talking to other landlords and doing a detailed cost analysis. You might find that selling your home is a better financial decision and less stressful.”

Do You Have a Good Understanding of What It’ll Cost?

If you’re thinking about renting out your home primarily to generate extra income, remember that there are additional costs you’ll want to plan for. As an article from Bankrate explains:

  • Mortgage and Property Taxes: You still need to pay these expenses, even if the rent doesn’t cover all of it.

  • Insurance: Landlord insurance costs about 25% more than regular home insurance, and it’s necessary to cover damages and injuries.

  • Maintenance and Repairs: Plan to spend at least 1% of the home’s value annually, more if the home is older.

  • Finding a Tenant: This involves advertising costs and potentially paying for background checks.

  • Vacancies: If the property sits empty between tenants, you’ll lose rental income.

  • Management and HOA Fees: A property manager can ease the burden, but typically charges about 10% of the rent. HOA fees are an additional cost too, if applicable.

Bottom Line

To sum it all up, selling or renting out your home is a personal decision that depends on your circumstances. Whatever you decide, taking the time to evaluate your options will help you make the best choice for your future.

Make sure to weigh the pros and cons carefully and consult with professionals so you feel supported and informed as you make your decision. A real estate agent can be a great person to go to for advice.

Read more at KeepingCurrentMatters.com

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4 Housing Market Myths Hurting Today’s Buyers and Sellers

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The housing market has been decidedly stuck of late.

Sellers with low mortgage rates are holding on to their homes, leaving buyers with scant listings to choose from.

And buyers who do find a house face substantial economic challenges as median home prices and mortgage rates remain high.

With sellers and buyers at an impasse, misconceptions and outright myths are popping up on both sides about the state of the market on social channels and forums.

However, some of the supposed housing issues that are coming up time and again aren’t true. Here are the four biggest myths about the current housing market and why experts say they’re wrong.

1. The housing market is about to crash, just like in 2008

Today’s buy-sell stalemate has some would-be buyers almost hoping that we are in a bubble—that it will burst and lead to plentiful homes available at fire-sale prices.

No one can blame a buyer dealing with the double whammy of higher home prices and interest rates for hoping for a lucky break. But the reality is that the 2008 housing market collapse tripped a recession that caused record job losses. And job loss doesn’t further anyone’s financial dreams.

Even if we are in a bubble right now—and most experts say it’s hard to call it until it’s in the rearview mirror—conditions are not at all like they were in 2008.

Unlike today, there was a glut of new homes being built then, sellers were trying to attract buyers, and homebuyers could qualify for a mortgage with little to no money down.

“That access to credit included a surge in lenders offering loans to buyers with lower credit scores, or subprime borrowers,” says Chris Ragland, principal at Ragland Capital.

Easy credit might sound good in theory, but some loans were adjustable-rate mortgages with a low “introductory teaser” rate. And once the introductory rate ended and the loan adjusted to a higher rate, some buyers could no longer afford their monthly payments.

“Subprime borrowers in particular who suffered a job loss had little to no accumulated equity in their homes,” says Ragland. So when the economic downturn came, they were immediately underwater on their loans and many defaulted.

None of these conditions is true now. Today, almost half of all homeowners have more than 50% equity.

“Laws were passed in 2010 to strengthen verification of a borrower’s ability to repay a loan,” says Ragland.

And the drivers of today’s home prices are entirely different.

“The 2020 to 2022 price increase was driven by an inventory shortage and unusually low interest rates,” says Bruce Ailion, attorney in Atlanta.

2. Owners have such good rates, they will never sell

One of the biggest complaints about today’s housing market is that there just aren’t enough homes for sale. And given the unbeatable interest rates available two years ago, when many bought or refinanced, what would make sellers budge?

“Mortgage rates were forced lower than they should have been, lower than they likely ever will be again,” says Ailion. So when you look at it from the seller’s point of view, it doesn’t make sense to give up a low long-term rate.

But in reality, there are always life events that force homeowners to sell.

People get new jobs and have to relocate. Growing families need more room or want to be in a particular school district. Retirees downsize or move to a better climate. Seniors move to be closer to family or go into assisted living. And their home will go up for sale.

3. As rates rise, home prices will drop

Many would-be homebuyers have hoped that higher interest rates would bring down home prices. But the relationship between interest rates and home prices is complex.

“Interestingly, the increase in interest rates has not resulted in a decline in prices in most markets,” says Ailion.

In fact, home prices have been all over the place this year and vary from city to city. Home prices are still being driven by inventory. And in the most popular locations, an updated home that’s move-in ready might still get multiple offers.

“Some buyers are dating the rate and marrying the house,” Ailion explains. “Today’s high interest rates can be refinanced in the future. And today’s housing prices will likely be higher when those lower interest rates return.”

4. Good-credit buyers are subsidizing buyers with bad credit

This myth blew up over a misunderstanding about government-backed Fannie Mae and Freddie Mac loans and a new fee structure.

Fannie and Freddie are government-sponsored enterprises (GSEs) on a mission to make mortgages more accessible to first-time homebuyers with lower incomes but good credit. They don’t issue loans directly but work with lenders to lower their risk by guaranteeing certain loans should the borrower default.

The organizations also purchase other lenders’ loans on the secondary market and sell them to investors as mortgage-backed securities. This allows lenders to keep lending to new borrowers.

Fannie and Freddie are essential organizations in the mortgage industry. About 70% of all mortgages are GSE-backed. So they can set requirements and establish fees.

The new fee structure eliminated upfront fees for first-time homebuyers. At the same time, it increased fees for other loans that are outside the organizations’ stated mission and borrowers who don’t need a leg up: namely, second-home loans, high-balance loans, and cash-out refinances.

It really had nothing to do with a borrower’s credit score.

“It’s a myth,” says Ailion. “Buyers with poor credit always pay a higher interest rate than buyers with good credit.”

Read more at Realtor.com

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Home Prices Fell in July for the First Time—This Is Good News for Buyers as the ‘Market Is Healing’

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Median home prices fell in July, marking the first-ever seasonal decline in a month that’s typically a peak time for home sales.

The national median list price dipped from $445,000 in June to $439,950 in July, according to a new monthly housing report by Realtor.com®.

This downturn can be attributed to a sluggish summer housing market, with buyers and sellers looking for more economic breaks before making a move.

“As mortgage rates fell in July to their lowest since March on expectations that the Federal Reserve will cut rates as early as September, we suppose some homebuyers may be holding out for lower rates over the next few months,” says Realtor.com senior economist Ralph McLaughlin in his analysis.

With many buyers watching mortgage rates from the sidelines, home sales are now moving at the slowest rate since 2020.

This hesitancy among buyers likely also contributed to prices being slashed on 18.9% of listings in July, up from 15.5% a year ago.

“Sellers are becoming more grounded with patience and price expectations,” McLaughlin adds.

Indeed, the share of listings with price cuts is the highest since 2022.

This all adds up to good news for buyers who have been waiting for home prices to come back down to earth.

Increase in homes for sale

While many homebuyers sat out July, those who did venture into the housing market fray had more listings to choose from than the same time last year.

The total number of homes for sale in July was 36.6% higher than the year prior, marking the ninth consecutive month of growth.

It “now sits at a post-pandemic high,” says McLaughlin. “It’s a welcome sign that the housing market is normalizing, and it tells us the market is healing.”

All four regions of the U.S. saw an increase in active home listings, with the South leading the way at 47.6%, followed by the West at 35.4%, the Midwest at 22.7%, and the Northeast at 14.7%.

Metros that saw the largest increases in the number of homes for sale included Tampa, FL, at 94.9%; Orlando, FL, at 78.7%; and San Diego at 77.7%.

Much like home prices, the jump in inventory is likely the result of one main factor: mortgage rates.

“The decrease in mortgage rates seen in July likely contributed to an increased pace of growth in listing activity,” says McLaughlin.

Where the fresh listings are

Newly listed homes surged 3.6% above last year’s levels, reflecting a notable increase in seller activity.

Buyers looking for the most fresh housing choices should head West, where there are 7.3% more newly listed homes than in July 2023. New listings also grew by 3% in the Northeast and 0.9% in the Midwest.

Only the South saw fresh listings fall, with 0.5% fewer new listings this July than last.

The metros that saw the largest increase in fresh listings compared with last year included Seattle, at 37.3%; San Jose, CA, at 30.8%; and Columbus, OH, at 17.4%.

The home price paradox

Despite the overall decline in the national median list price, it remained stable compared with the same time last year, when it was $440,000.

“However, when a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year,” says McLaughlin.

This somewhat confusing data is due to the fact that the median price per square foot continues to rise, increasing 3.1% in July compared with the same time last year.

The price per square foot in the 50 largest metros shot up between 24.1% and 81.9% compared with July 2019.

However, the rise in price per square foot has a silver lining for budget-minded buyers.

“This indicates that the inventory of smaller and more affordable homes has grown in share,” McLaughlin explains.

In July, as in the previous five months, the growth in homes priced in the $200,000 to $350,000 range outpaced all other price categories, as the number of homes for sale in this range grew by 47.3% year over year.

Homes are still lingering on the market

The typical home spent 50 days on the market in July, five more days than the same time last year and five more days than last month.

“July marks the fourth month in a row where homes spent more time on the market compared with the previous year as inventory continues to grow and home sales remain sluggish,” says McLaughlin.

However, this trend might change soon.

“We expect selling activity to continue to normalize as rates inch their way down over the next year, with potentially an unusual uptick in September if the Fed decides to cut rates,” McLaughlin predicts.

Read more at Realtor.com

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As Featured in West + Main Home Magazine: Historical Home Renovation

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Adam + Jessica Johnson

“When we first moved to Oklahoma, we were on the hunt to find a historical home in a desirable neighborhood to renovate. ”
— Adam + Jessica Johnson

West + Main agent Jessica Snook's client Adam grew up in a 110 year old craftsman bungalow in a historical district of Orange County, California.

"When we first set eyes on this 1,700 square foot airplane bungalow beauty with classic California architecture, we knew this was the project we were dreaming of," said Jessica. "A true passion project for us, something we could transform back to life, all while preserving the integrity of the home. Our main goal was to bring back the original charm and character of the home which included some personal touches of what we know best, that warm, airy ambiance of California Coastal interior design."

With this particular project, Jessica + Adam went into it with the intention of transforming the old, outdated craftsman house into a charming home they could be proud of and they really feel like we accomplished their goal.

"Some major transformations that really elevated the home were resurfacing the floors, custom paint in the library, wall moulding and wallpaper in the dining room," explained Jessica. "Our favorite part of the house was how we were able to maximize the square footage in the kitchen, especially with adding pocket doors. We were able to create an open and functional space with modern amenities, including room for a walk-in pantry. We have had multiple conversations about how much we loved the way this project turned out and even considered moving in ourselves!"

 

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When do the Olympics start and end? See the schedule for the 2024 Paris Games.

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The 2024 Paris Olympics are set to kick off soon, with a schedule full of sporting events. Here's everything you need to know about when this summer's Olympics will start and end.

The Olympics will officially open in Paris on the night of Friday, July 26 and continue through Sunday, Aug. 11, although some team events started on July 24. The July 26 opening ceremony will be held on the Seine river, which flows though Paris. The closing ceremony, which includes a parade of flags and athletes, will take place on Aug. 11.

When is the opening ceremony for the 2024 Olympics?

The opening ceremony for the 2024 Summer Olympics will be unique. According to organizers, the July 26 event will be the first Olympic opening ceremony held outside of a stadium. The Tokyo opening ceremony last time around was held in a largely empty stadium because of the COVID-19 pandemic.

In Paris, athletes will parade in boats down the Seine river. The flotilla will begin at 7:30 p.m. local time on Friday, July 26,, which is 1:30 p.m. Eastern in the U.S. and 10:30 a.m. on the West Coast.

An estimated 94 boats will travel along the almost four-mile route as part of the ceremony, with delegations and performers joining athletes on the Seine, according to organizers. Around 10,500 athletes representing 206 National Olympic Committees are taking part in the Games.

Around 120 heads of state, royals and other leaders will also attend the opening ceremony.

When is the closing ceremony for the Paris Olympics?

The closing ceremony for the 2024 Summer Olympics will be on Sunday, Aug. 11, beginning at 2 p.m. Eastern, in the Stade de France. It will feature a parade of flags, a parade of athletes and victory ceremonies, among other events. The closing ceremony in Tokyo lasted for about three hours. 

When is gymnastics at the 2024 Paris Games?

Artistic gymnastics events are scheduled for July 27 to Aug. 1, and then again from Aug. 3-5. Rhythmic gymnastics events, a female-only event, are scheduled for Aug. 8-10. Artistic and rhythmic gymnastics test different skills and use different equipment.

All trampoline gymnastics events are scheduled for Aug. 2, the day starts with the women's qualifications, followed by the women's final. Then comes the men's qualifications and the men's final later on Aug. 2.

Women's artistic gymnastics, featuring athletes including U.S. star Simone Biles, involves four core events: beam, vault, uneven bars and floor exercise. Men's artistic gymnastics features eight events across six pieces of equipment: rings, vault, pommel horse, horizontal bar, parallel bars and floor exercise. There are two additional events to test the overall skill of the male gymnasts.

There are two categories of competition in Olympic rhythmic gymnastics, individual all-around women and group all-around women. It showcases skill, flexibility and musicality using balls, hoops, clubs and ribbons.

When is soccer at the 2024 Paris Games?

Some who go to check the Olympics schedule for soccer may be confused: The sport is listed under football, as it is known in most of the world. 

The events started before the official opening ceremony on July 26 because of the number of matches in the tournament. Matches are scheduled for most days during the Games, with the full listings and results available online. 

An overview of the Olympics schedule for 2024

Competition actually began two days before the opening ceremony, on July 24, with preliminary rounds in archery, soccer, handball and rugby. The swimming events will run during the first week of the Games from July 27 through Aug. 4, with track and field events taking place from July 1 to Aug. 11. 

The marathon is traditionally the last athletic event.

While a full schedule is available online, the Paris Games organizers note that it is subject to change.

Wednesday, July 24

Thursday, July 25

Friday, July 26

Saturday, July 27

Sunday, July 28

Monday, July 29

Tuesday, July 30

Wednesday, July 31

Thursday, Aug. 1

Friday, Aug. 2 

Saturday, Aug. 3

Sunday, Aug. 4 

Monday, Aug. 5

Tuesday, Aug. 6 

Wednesday, Aug. 7 

Thursday, Aug. 8 

Friday, Aug. 9 

Saturday, Aug. 10

Sunday, Aug. 11

Will the Olympics TV schedule be live or delayed?

There will be both live and tape-delayed coverage of the Olympics airing on TV. At least nine hours of coverage will be broadcast each day from 9 a.m. to 6 p.m. ET on NBC and Telemundo. Some events will air on the USA Network, Golf Channel, CNBC and E!. 

Peacock will livestream events from the 2024 Olympics, including the opening and closing ceremonies and every Olympic basketball game.

Read more at CBSNews.com

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