The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021.

Home buyers, is this the year you work to improve your credit score, pay down some debt, or save for a down payment?

Home sellers, we’ve laid out plans for you to get top dollar for your property, including timing your home sale, making your property stand out from the crowd, and investing in your extra living space.

And even if you’re staying put for awhile, homeowners, you can resolve to improve your status quo by evaluating your home budget, finalizing your home maintenance schedule, or maybe investing in a second property.

So no matter your homeownership status, we’ve got some ideas and advice for you to make this year your best one yet. Read on to learn more.

HOME BUYERS

Resolution #1: Qualify for a better mortgage with a higher credit score.

Your credit report highlights your current debt, bill-paying history, and other key financial information. Importantly for your home-buying journey, it is also used by lenders and companies to calculate your credit score, which partly determines if you are qualified to obtain a mortgage. Therefore, before you start house-hunting, make sure your finances are in the best possible shape by checking your credit report from Equifax, Experian, and TransUnion (via AnnualCreditReport.com). You can also obtain your credit score for free from some banks and credit card companies.

Your credit score will be a number ranging from 300-850.1 Generally speaking, a credit score of 740 or higher is considered very good to excellent.2 If your FICO score drops below 740, you might need to work at boosting your score for a few months before you begin house-hunting. Ways to do this are to pay your bills on time every month, keep your credit card balances low, and avoid applying for new credit.

Resolution #2: Improve your credit health by paying down debt.

Do you have student loans, credit card debt, or car payments tying up your income each month? That debt is hurting your “buying power,” or the amount of home you can afford. Not only is it money that you can't spend on your new home, but your debt-to-income ratio also affects your credit score, which we discussed above. The less debt you have, the higher your FICO score and the better mortgage you can obtain.

If you can, pay off some debt in its entirety—like a low balance on a credit card. Then apply that "extra" money you previously paid on that credit card to pay off bigger debt, like a car loan. Even if you can’t pay off all (or any) of your debt in full, reducing the balances of each account will help you qualify for the best possible mortgage terms.

Resolution #3: Create a financial safety net before applying for a mortgage.

Don’t forget that buying a home requires some cash as well. A down payment is typically 7% of a home’s purchase price, and closing costs currently average $3,700.3,4 You’ll also need money for moving expenses and any initial maintenance tasks that might pop up. And as the pandemic taught us, you never know when an unforeseen event might cause a job loss, drop in income, or health scare, so having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs.

Dedicate some effort to building up your reserves. Cut down on unnecessary expenses, and consider having a portion of each paycheck automatically deposited into your savings account to avoid the temptation to spend it.

HOME SELLERS

Resolution #4: Decide on the right time to sell your home.

If you’re looking to maximize profit on the sale of your home, selling earlier in the year makes sense. Listing prices historically increase early in the year, peak in May, plateau through June, and decrease for the remainder of the year.5 And, according to the National Association of Realtors, “[w]ith both mortgage rates and the number of homes available for sale expected to remain relatively low, home prices are likely to continue to increase. [In] mid-January, home prices typically begin a quick ramp-up in a normal year.”5

But sales price isn’t the only thing to consider. You might not be ready to sell your home yet because you don't want to uproot your kids during the school year or because you need to tackle some minor upgrades before placing your home on the market.

This means that there is no one month or season that is the perfect time to sell your home. Instead, the right timeline for you takes into account factors such as when you’ll earn the highest profit, personal convenience, and whether your home is even ready to put on the market. A trusted real estate professional can talk you through your specific needs to clarify when to sell your home.

Resolution #5: Boost your home’s resale value by making your property shine.

Housing inventory is at historic lows across the country, and that means the market is fiercely competitive.6 Selling your home in 2021 has the potential to net you a huge return right now, and you can maximize that amount with some simple fixes to make sure your property outshines your neighbors' for sale down the street.

In your home, you might need to tackle a minor remodeling project, such as upgrading the flooring or adding a fresh coat of paint. According to the National Association of Realtors’ 2019 Remodeling Impact Report, simply refinishing existing hardwood floors recoups 100% of the cost at resale, and completely replacing it with new wood flooring recovers 106% of costs.7

Outside, you might consider improving your curb appeal by removing a dead bush, trimming a tree that blocks the front window, or power-washing your moldy driveway and sidewalks. In fact, real estate agents say cleaning the exterior of your house can add $10,000 to $15,000 to a home’s sale price.8 And according to a Virginia Tech study, improving a home’s landscaping may increase its value by 10 to 12%.9

A good agent should provide custom-tailored suggestions to ensure your property pops inside and out. Ask us about our local insider secrets that will make your home stand out from others on the market.

Resolution #6: Invest in your “extra” living space to meet current buyers’ needs.

Due to COVID-19, more people are staying at home to work, go to school, exercise, and stay entertained. And these lifestyle changes are showing up in home buyer preferences. For example, according to one study, buyers are looking more and more for homes with formal, outfitted home offices, private outdoor spaces, and updated kitchen appliances.10

So if you’ve got an underutilized room, consider turning it into an office, home gym, schoolroom, or multi-purpose room to meet current home buyer needs and attract better offers on your home. Got some underwhelming space outside? You could turn it into an outdoor entertainment area by adding a firepit, upgrading the patio furniture, or installing a grilling area. Be sure to consult with a local real estate professional before investing in a renovation, however, as each market’s buyers have different tastes.

HOMEOWNERS

Resolution #7: Evaluate your household budget to reflect financial changes.

After this past year, in particular, your financial picture may have changed. Maybe you were furloughed, had your hours reduced, or got a new job further from home. Perhaps you’ve kept the same job, but you’re now working remotely. A work-from-home arrangement could mean less money spent on gas, tolls, a professional wardrobe, and dining out for lunch.

But this could also mean new (or increased) expenses now that you’re working at home, such as new tech-related purchases, faster Wi-Fi, and higher energy bills. January marks the perfect opportunity to update your income and expenses and review last year’s spending habits, tweaking as needed for 2021.

For more specific ideas, contact us for our free report "20 Ways to Save Money and Stretch Your Household Budget."

Resolution #8: Save money now (and earn more later) with a home maintenance plan.

Having a schedule of regular home maintenance projects to tackle will save you money now and in the long-term. You’ll avoid some surprise “emergency fixes,” and when you’re ready to eventually sell your home, you’ll get higher offers from buyers who aren’t put off by overdue repairs.

Even if nothing necessarily needs fixing right now, you can lower your energy costs by maintaining and upgrading your home.  According to the U.S. Department of Energy, simple fixes add up: replace five most frequently used bulbs with ENERGY STAR ones to save $75/year; repair leaky faucets to save $35/year; replace older toilets with low-flow models to save $100/year; and seal air leaks to save $83-$166/year.11

For a breakdown of home maintenance projects to tackle throughout the year, contact us for our free report “House Care Calendar: A Seasonal Guide to Maintaining Your Home.”

Resolution #9: Invest in real estate for a better standard of living.

Even if you don’t plan on leaving your current residence, real estate is a great way to improve your quality of life in 2021.

Have cabin fever from the long quarantine? A vacation home in a getaway location you love lets you safely spread your wings. And if you have been looking for a second stream of income, an investment property might be your answer. Just be sure to consult with a real estate professional to get a realistic sense of a property’s true income potential.

Want more information on how a second property fits into your 2021 plans? Request our free report, "Move Up vs Second Home: Which One Is Right For You?"

LET US HELP YOU WITH YOUR 2021 GOALS

Without a plan and a support system, 55% of Americans will break their new year’s resolutions.12 Whether you’re looking to buy, sell, or stay put in your home, it helps to connect with a trusted real estate agent to keep you motivated and on track.

As local market experts, we have the knowledge, experience, and networks to help you achieve your homeownership goals, whatever they may be. Reach out to us today for a free consultation and commit to a happy and prosperous new year.

Sources:

1.      USA.gov -
https://www.usa.gov/credit-report

2.      Equifax -
https://www.equifax.com/personal/education/credit/score/what-is-a-good-credit-score/

3.      NerdWallet -
https://www.nerdwallet.com/article/mortgages/the-20-mortgage-down-payment-is-dead

4.      Zillow -
https://www.zillow.com/mortgage-learning/closing-costs/

5.      Realtor.com -
https://www.realtor.com/research/we-should-be-in-a-buyers-market-right-now-but-covid-turned-everything-upside-down-best-time-to-buy-a-home

6.      Business Insider -
https://www.businessinsider.com/how-2020-broke-the-housing-market-inventory-could-run-out-2020-9

7.      National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2019-remodeling-impact-10-03-2019.pdf

8.      House Logic -
https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/

9.      Virginia Cooperative Extension -
https://www.pubs.ext.vt.edu/content/dam/pubs_ext_vt_edu/426/426-087/426-087.pdf

10.   HomeLight -
https://www.homelight.com/blog/top-agent-insights-for-q2-2020/

11.   U.S. Department of Energy -
https://www.energy.gov/energysaver/articles/how-much-can-you-really-save-energy-efficient-improvements

12.   Ipsos -
https://www.ipsos.com/en-us/urban-plates-ipsos-NY-Resolutions

1 Tiffany Trail: Large Single-Story on an Acre of Land in Round Rock

Check out this incredible single-story home in a great location in Round Rock, on a full acre! The large private lot would be great for chickens and/or a massive vegetable garden. Big covered patio; custom pizza oven; spacey garage with workshop; utility/mud room with sink and half bath.

More info: www.makeATXhome.com/featured

2020 Outlook: Real Estate Market Forecast

We’re in the midst of the longest economic expansion in U.S. history, and economists think there’s still room to grow. A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020.1

Still, given that recessions are a natural (and necessary) part of a business cycle, we know this period of growth will inevitably end. So you may be wondering … how will an eventual recession impact the real estate market?

Many Americans assume a recession would lead to a decline in housing prices like we saw during the Great Recession of 2008. But the real estate market crash we experienced wasn’t typical. In fact, the last recession wasn’t typical at all. It was the worst economic downturn since the Great Depression of the 1930s.

ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that, in the majority of cases, home prices actually went up. Only twice (in 1990 and 2008) did prices decline, and in 1990 it was by less than one percent.2

So what can historical precedent—combined with today’s data—tell us about the future of real estate? Here’s where experts predict the housing market is headed in 2020 and beyond.

HOME PRICES WILL KEEP RISING

Economists predict U.S. housing prices will continue to rise, regardless of a recession. In fact, property data firm CoreLogic forecasts a faster rate of growth for home prices in 2020 than we saw in 2019, with the biggest gains at the lower end of the market.3

Arch MI Chief Economist Ralph DeFranco expects entry-level home prices to increase faster than incomes this year, making it even more difficult for many first-time buyers to afford to enter the market.4

“Low interest rates and a shortage of starter homes will continue to push up prices,” predicts DeFranco. “This is especially the case for lower price points, since builders have tended to focus on more expensive, higher-profit houses and less on replenishing low inventories of entry-level homes.”4

“Real estate is on firm ground with little chance of price declines,” said National Association of Realtors Chief Economist Lawrence Yun. “However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.”5

What does it mean for you? If you have the ability and desire to buy a home now, don’t let a fear of recession or falling prices hold you in limbo. Economists expect home values, as well as rent prices, to continue rising. So you’ll likely pay more the longer you wait.

INVENTORY CONSTRAINTS WILL CONTINUE

According to Redfin, Americans are staying in their homes longer. In 2019, the average homeowner had resided in their home for 13 years, up from just eight years in 2010. That means there are fewer homes available today for those who want to buy.6

It’s possible that an increase in new construction could offer some relief. The National Association of Realtors (NAR) expects single-family housing starts to total one million this year, the highest level since 2007. And NAR Chief Economist Lawrence Yun predicts the average price of new construction will decline slightly as builders shift to building smaller, more affordable homes.7

However, these efforts may not be enough to meet current demand. “Despite improvements to new construction and short waves of sellers, next year will once again fail to bring a solution to the inventory shortage,” predicts Realtor.com Senior Economist George Ratiu. “In 2020, we expect inventory to struggle to grow and could instead reach a historic low level.”8

What does it mean for you? If you’re looking to buy a starter home, be prepared to compete for the best listings. Start your search early, and if you’re up against a deadline (like a new baby), build in plenty of time to find the right home. We can help you assess your options, including new construction and up-and-coming developments.

MORTGAGE RATES WILL REMAIN LOW

Mortgage rates have declined more than a full percentage point since November 2018, when they hit a recent peak of 4.94%.9 The Mortgage Bankers Association predicts rates will remain low, at around 3.7%, through mid-2021.10

While it may not seem significant, on a $200,000 30-year fixed-rate mortgage, that lower rate means buyers could save around $145 on their monthly payment and more than $52,000 over the life of their mortgage. Lower mortgage rates make homeownership more accessible and affordable for buyers.

Although economists expect mortgage rates to stay low, they caution against waiting to act. Economic factors, shifts in supply and demand, or unforeseen impacts of the November election could cause rates to rise unexpectedly. “We recommend borrowers with long-term plans of staying in their homes to lock in a low rate now because there’s no telling how long these low rates will last,” warns Preetam Purohit, a capital markets trader at Embrace Home Loans.11

What does it mean for you? If you’re looking to buy a home, act soon to lock in a historically low mortgage rate. It will minimize your monthly payment and could save you a bundle over the long term. And if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates.

MILLENNIALS WILL DRIVE THE MARKET

Millennials are expected to account for more than half of all mortgages this year, outnumbering Generation X and Baby Boomers combined. It’s not surprising, considering their age and stage of life. In 2020, the largest cohort of millennials will turn 30, and the oldest millennials will turn 39.8

“Family changes tend to drive home-buying decisions,” explains Realtor.com Chief Economist Danielle Hale. “Millennials are going to be active in the housing market not just because they’re just at the age when they’re thinking about becoming first-time home buyers, but they’re also in the age range when they’re having kids.”12

Younger millennials flocked to urban centers that offered easy access to work, shopping, and restaurants. But high prices, lack of square footage, and subpar schools are driving millennials out to the suburbs as they begin to marry and expand their families. 

In response, a new model for suburban living has emerged. “Hipsturbias,” or mixed-use communities that bring the live/work/play concept to the suburbs, were recently named one of the top real estate trends for 2020 by the Urban Land Institute.4

What does it mean for you? If you’re a millennial who has been priced out of urban living or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs. And if you’re a homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this leading market segment!

WE’RE HERE TO GUIDE YOU

While national real estate numbers can provide a “big picture” outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood. 

If you’re considering buying or selling a home in 2020, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.

START PREPARING TODAY

If you plan to BUY this year:

1. Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly.

2. Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you.

3. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!

If you plan to SELL this year:

1. Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property, and it will help us price your home correctly once you’re ready to list.

2. Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results.

3. Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage … and get you one step closer to moving when the time comes!

Sources:

1. NBC News –https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511

2. Curbed –https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates

3. HousingWire  –https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/

4. Forbes –https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935

5. National Association of Realtors –https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in

6. Redfin –https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/

7. HousingWire –https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/

8. Realtor.com –https://www.realtor.com/research/2020-national-housing-forecast/

9. YCharts –https://ycharts.com/indicators/30_year_mortgage_rate

10. MBA Mortgage Market Forecast November 2019  –https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary

11. Dallas Morning News –https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/

12. Realtor.com –https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/

March is Endometriosis Awareness Month!

By: Chelsea

As you probably know from working with us, I have been living with several chronic illnesses that have often kept me doing what work I can from home. Years of doctor visits, tests, trying new medicines—nothing seemed to ‘fix’ my issues, and we honestly weren’t even completely sure what issues we were trying to fix. The diagnoses of fibromyalgia and IBS were in my charts, but neither of those exactly have standard treatments.

Toward the end of last year, a perfect storm of circumstances led us to push for a second opinion about my unrelenting pelvic and intestinal pain. Let me tell you, even when you know that you desperately NEED a second opinion, when you are in the throes of intense pain it can be nearly impossible to do the work it takes to find a new doctor you hope you can trust. But in the few moments when my pain was managed enough to allow me to search, I started down a path that many doctors before had dismissed: endometriosis.

There’s a much longer story to tell, but the short version is that the research pointed to surgical excision as the ‘gold standard’ of endo care, there aren’t a lot of doctors who are trained and experienced enough to perform the extremely delicate procedure, and it often takes patients who are diagnosed with conditions like IBS and chronic pain to reach a diagnosis of endo. Luckily one of these specialists with an incredible track record of surgical excision, Dr. Devin Garza, lives in Austin, and I knew after all my research that he was the doctor I had to see.

Currently, I’m exactly one week post-op, and am recovering at home. While we didn’t set out to get a diagnosis and surgery right before March, we are very happy this all happened when it did so we can share and educate others during Endometriosis Awareness Month. Keep an eye on the blog for more details about our journey to the endo diagnosis, the how and why of excision surgery, and lots of information about endometriosis and what you can do to help raise awareness!

Pfantastic Pflooring (and Concrete Counter Tops!) in Pflugerville

Check out our newest listing in Pflugerville: 1012 Skylark Hill Lane! It’s a 4-bedroom, 2-bathroom, 2,380 square foot house priced at $262,000. This home is has been immaculately kept and beautifully customized. No carpet, w/ wood-look laminate in bedrooms and family areas and wood-look tile in master bath. Stunning kitchen, w/ custom-made concrete counter tops that offer ample space for appliances and food prep. Pristine white cabinetry with soft-close drawers provides storage galore! Floor in the kitchen is custom epoxy that is as durable as it is dazzling! Laundry off kitchen, w/ walk-in style pantry for even more storage. Custom epoxy/metallic floors in entry and hall bath! Here is the link to the listing with professional pictures and all the details. Below is the 3D virtual tour.

Hello, World!

Fosters and Ferals and Feeders, oh my!

This adventure was 100% not planned & unexpected. It has been challenging, messy, wonderful, heartbreaking, and a huge labor of love—both for the ones we have been able to rescue and the ferals who still reside at the colony.

Back in April we responded to a Facebook post about a momma cat with newborn kittens at an apartment complex in South Austin. She moved them before we got there, and after two days of hunting we couldn't find her or the kittens. But in our searching we did find what turned out to be a feral colony that was not being TNR'd. So I reached out to a friend who is a trapping pro. In the course of trapping we had several pregnant females, who would have birthed 17 kittens between them without our intervention. Those, along with the 10 we were able to rescue, would have doubled the colony population when they were born. Most likely only a few would have survived into adulthood.

The original finder of the momma and babies, about five weeks later, came upon a vacated apartment in the complex with two kittens who had been abandoned on the porch with a note that 'it was too hard, sorry'. Those kittens are the foster duo The Cusacks, and we believe the two lone survivors of the five that the momma had moved weeks earlier. We have no idea what happened to them those several weeks, and no way to contact whoever had these kittens to find out. They have been with us since that day, for quite a while as the only two fosters, and they are super bonded which is why we're really holding out for an adopter who will understand their need to stay together.

Several weeks after that we had a round of females trapped for TNR that were lactating when they were spayed. So we knew there were kittens somewhere on this overgrown, vacant lot. After a long, hot, and frustrating afternoon of digging through brush and piles of junk we were just about to give up when our trapper friend had the brilliant idea to do one last sweep of the back of the lot that shares a fence with an apartment complex. On the other side of the fence, in a junk heap of discarded lumber and appliances and broken toilets, Derek was able to grab two different sets of 4 kittens. And here we are. We're still feeding at that colony and working to get it under control and managed more efficiently. Every time I'm there I feel so grateful that we found these guys and gals, and that they are alive, and happy, and not struggling through the oftentimes perilous life of a feral.

So, that’s the story of our fosters. Happy, healthy, extremely affectionate kittens, who may unfortunately be looked over because they are a bit older. Slowly but surely we are matching them up with their forever familes. They are still all kitten and all hilarious! We sincerely appreciate the support, shares, tags, posts, and everything friends and family have done to help us get these kittens extra exposure! As we continue to care for the cats who still live at the colony, we are training volunteers to feed and water. It takes a lot of time and resource management, so we've created an Amazon wish list for the items we need to help the feeders. If you are able to donate, the list can be found here! It truly takes a village, and we are lucky to have such a loving one!