Use a Realtor • December 11, 2024

Why Moving to a More Affordable Area Makes Sense

by Steve Vavrek

Moving to a more affordable area could be the fresh start you need to get ahead financially. While some markets are certainly more affordable than others, know that working with a trusted real estate agent to find what fits your budget and your desired location – no matter where you want to be – is always the best plan. And with the rising cost of living, many people are rethinking where they live and looking for ways to cut expenses.

There are areas well known for lower housing costs, reduced insurance premiums, and more budget-friendly daily living expenses – but they’re not the only places to find a hidden gem. If you’re open to relocating, you might discover the savings you’re looking for.

Why Move to a Lower-Cost Area?

Life is getting more expensive by the day. From rising home prices to higher grocery bills, it feels like everything costs more than it used to. Housing, the largest expense for most people, has become especially costly.

In fact, according to data from Case-Shiller, home prices increased 3.9% from September 2023 to September 2024. And data from GOBankingRates shows insurance costs are up too, with home insurance premiums averaging $2,151 annually – a significant jump compared to recent years.

These rising costs can feel like a lot to handle. That’s why more people are considering lower-cost areas. An article from the National Association of Realtors (NAR) says:

“With the past decade of rising home prices, buyers are looking for more affordable areas . . . As housing affordability continues to shape migration patterns, these areas may provide an opportunity . . . for those looking for more cost-effective alternatives to the nation’s larger, pricier metropolitan areas.”

Lower-cost areas typically offer more affordable housing, less expensive home insurance, and reduced costs for daily living like groceries and gas. Transportation expenses and car insurance premiums also tend to be lower. For anyone feeling stretched thin, moving to a less expensive area can provide meaningful financial relief.

Planning Your Big Move

Whether it’s finding a home that fits your budget or cutting down on other expenses, making the right move in any market can bring significant financial relief. Of course, moving isn’t a decision to take lightly.

Whether you’re moving just a few towns over or to a completely different state, there’s a lot to consider. From job opportunities, to schools, to local amenities – it all has an impact on finding the right home for you.

This is why a knowledgeable local real estate agent can be your best resource. Not only can we help you navigate the housing market in your new or desired area, but we’ll also guide you to neighborhoods that balance affordability with your needs.

As your real estate agent, I can still help you identify budget-friendly options wherever you need to be.

Bottom Line

If the rising cost of living has you feeling stuck, know that you have options. Moving to a more affordable area could be the fresh start you need to get ahead financially and improve your quality of life.

But don’t try to tackle the process alone. With my help, you’ll be well-prepared to make a move. When you’re ready to take the first step, reach out to me and I will listen to your needs and get you in the right home.

Why Use a Realtor? • December 9, 2024

Why More Sellers Are Hiring Real Estate Agents

by Steve Vavrek

Putting your house for sale on your own – often called “For Sale by Owner” or FSBO – might be on your mind. But you should know that it gets complicated very quickly, especially in today’s complex market.

That’s why data from the National Association of Realtors (NAR) shows a record low number are going the route of selling on their own.

Instead, more and more homeowners are choosing to work with a real estate agent (see graph below):

And here’s why partnering with an expert is the go-to choice. Selling your home is a big deal, and while FSBO might seem like a way to save time or money, it comes with a lot of responsibilities.

The selling process requires setting the right price, navigating a growing amount of legal paperwork, and creating a solid strategy to attract buyers. And going it alone often means taking on more than you bargained for.

Let’s look at two big reasons why working with a realtor can make all the difference.

1. Getting the Price Right

One of the biggest hurdles when selling a house on your own is figuring out the right price. It’s not as simple as picking a number that sounds good – you need to hit the bullseye. Price your home too high, and buyers may overlook your listing. Price it too low, and you could leave money on the table or even raise red flags about the condition of your home.

Real estate agents are experts in finding the right price for today’s market trends. As Zillow explains:

“Agents are pros when it comes to pricing properties and have their finger on the pulse of your local market. They understand current buying trends and can provide insight into how your home compares to others for sale nearby.”

With their knowledge of the local market, buyer behavior, and what homes like yours are selling for, an agent will help you make sure you set a price that’s competitive and that’ll draw in buyers. And it’s that perfectly strategic price that’ll set the stage for selling at top dollar.

2. Understanding and Managing the Paperwork

Another part of the process is dealing with a growing stack of paperwork, from disclosure forms to contracts. Each document needs to be completed accurately, and there are legal requirements to follow that can feel overwhelming if you’re not familiar with them.

This is another area where my expertise really shines. They’ve handled these documents countless times and know exactly what’s needed to keep everything on track. Your agent will guide you through the paperwork step by step, making sure it’s done right the first time and you understand what you’re signing. With their help, you can avoid unnecessary stress and mistakes that can lead to delays, legal complications, and more.

Bottom Line

Selling your house is a big decision, and having a trusted real estate agent on your side can make all the difference.

Connect with me today so you have a pro to help with everything from pricing your home to managing the details. That way it takes the guesswork out of the process and helps you sell with confidence.

Buying a Home • November 26, 2024

How Co-Buying a Home Helps with Affordability Today

by Steve Vavrek

Buying a home in today’s market can feel like an uphill battle – especially with home prices and mortgage rates putting pressure on your budget. If you’re feeling stuck, co-buying could be one way to help you get your foot in the door. Freddie Mac says:

“If you are an aspiring homeowner, buying a home with your family or friends could be an option.”

But there are some things you’ll want to consider first. Let’s explore why co-buying is gaining popularity right now among some buyers and see if it may make sense for you too.

What Is Co-Buying?

Co-buying means buying a home with someone like a friend, sibling, or even a group of people. And, with today’s high home prices and mortgage rates, it’s an option more people are turning to.

According to a survey done by JW Surety Bonds, nearly 15% of Americans have already co-purchased a home with someone, and another 48% would consider doing it.

Why Consider Co-Buying?

The same survey also asked people about the perks of co-buying a home. Here are some of the top responses (see graph below):

Sharing Costs (67%): From saving for a down payment to managing monthly payments, buying a home is a big financial step. When you co-buy, you split these costs, making it easier to afford a home.

Affording a Better Home (56%): By pooling your financial resources, you may also be able to afford a larger or higher-quality home than you could have on your own. This may mean getting that extra bedroom, a bigger backyard, or living in a more desirable neighborhood.

Investment Opportunity (54%): Co-buying a home can also be an investment. You could buy a house with someone so you can rent out, which could help generate passive income.

Sharing Responsibilities (48%): Owning a home comes with a lot of responsibilities, including maintenance and upkeep and more. When you co-buy, you share these commitments, which can lighten the load for everyone involved.

Other Co-Buying Considerations

While co-buying has its benefits, there’s something else you need to consider before deciding if this approach is right for you. As Rocket Mortgage says:

“Buying a house with a friend or multiple friends might be a great way for you to achieve homeownership, but it’s not a decision you should make lightly. Before diving in, make sure you understand the financial and logistical hurdles you’ll face, as well as the human and emotional elements that might affect the purchase or, more importantly, your relationship.”

Basically, make sure you and your co-buyer are on the same page about things like how costs will be split, who will handle what responsibilities, and what will happen if one of you wants to sell your share of the home in the future. Leaning on an expert can help you weigh the pros and cons to make that conversation easier.

Bottom Line

If you’re looking to get your foot in the door but are having a tough time at today’s rates and prices, co-buying could be an option to make your move happen. But, it’s important to plan carefully and make sure that all parties are clear on the details. To figure out if co-buying makes sense for you, connect with me as soon as you can.

Why Use a Realtor? • November 18, 2024

Don’t Let These Two Concerns Hold You Back from Selling Your House

by Steve Vavrek

If you’re debating whether or not you want to sell right now, it might be because you’ve got some unanswered questions, like if moving really makes sense in today’s market. Maybe you’re wondering if it’s even a good idea to move right now. Or you’re stressed because you think you won’t find a house you like.

To put your mind at ease, here’s how to tackle these two concerns head-on.

Is It Even a Good Idea To Move Right Now?

If you own a home already, you may have been holding off because you don’t want to sell and take on a higher mortgage rate on your next house. But your move may be a lot more feasible than you think, and that’s because of your equity.

Equity is the current market value of your home minus what you still owe on your loan. And thanks to the rapid appreciation we saw over the past few years, your equity has gotten a big boost. Just how much are we talking about? See for yourself. As Dr. Selma Hepp, Chief Economist at CoreLogic, explains:

“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”

Here’s why this can be such a game-changer when you sell. You can use that equity to put down a larger amount on your next home, which means financing less at today’s mortgage rate. And in some cases, you may even be able to buy your next home in cash, avoiding mortgage rates altogether.

The bottom line? Your equity could be the key to making your next move possible.

Will I Be Able To Find a Home I Like?

If this is on your mind, it’s probably because you remember just how low the supply of homes for sale got over the past few years. It felt nearly impossible to find a home to buy because there were so few available.

But finding a home in today’s market isn’t as challenging. That’s because the number of homes for sale is growing, giving you more options to choose from. Data from Realtor.com shows just how much inventory has increased – it’s up almost 30% year-over-year (see graph below):

And even though inventory is still below pre-pandemic levels, this is the highest it’s been in quite a while. That means you have more options for your move, but your house should still stand out to buyers at the same time. That’s a sweet spot for you.

It’s important to note, though, that this balance varies by local market. Some places may have more homes for sale than others, so working with a local real estate agent is the best way to see what inventory trends look like in your area.

Bottom Line

If you’re thinking about selling, hopefully these concerns haven’t kept you up at night. With this information, you should realize you don’t have to let the what-if’s delay your move anymore.

Connect with me so you have the data and the local perspective you need to move forward.

Use a Realtor • November 4, 2024

Is a Fixer Upper Right for You?

by Steve Vavrek

Looking to buy a home but feeling like almost everything is out of reach? Here’s the thing. There’s still a way to become a homeowner, even when affordability seems like a huge roadblock – and it might be with a fixer upper. Let’s dive into why buying a fixer upper could be your ticket to homeownership and how you can make it work.

What Is a Fixer Upper?

A fixer upper is a home that’s in livable condition but needs some work. The amount of work varies by home – some may need cosmetic updates like wallpaper removal and new flooring, while others might require more extensive repairs like replacing a roof or updating plumbing.

Because they need some elbow grease, these homes typically have a lower price point, based on local market value. In fact, a survey from StorageCafe explains that fixer uppers generally cost about 29% less than move-in-ready homes.

And that’s why, according to a recent survey, more buyers are considering homes that need a little extra work right now (see below):

If you’re looking for an option to get your foot in the door, and you’re willing to roll up your sleeves and do a bit of work, a house with untapped potential may be a good option.

Tips for Buying a Home That Needs Some Work

Before you buy a home that may need a makeover, here are a few things to keep in mind:

Choose a Good Location: You can repair a house, but you can’t change where it is. Make sure the home is in a neighborhood you like or one with increasing property values and a growing number of local amenities. This way, even after you spend money fixing it up, the house will be worth more later.
Budget for Surprises: Fixing up a house can take more time and money than you might think. Make sure you save room in your budget for unexpected repairs or other unknowns that might come up while you’re working on the house.
Get a Home Inspection: Before you buy, hire an inspector to check out the house. They’ll help you determine the necessary repairs, so you don’t end up with expensive surprises later.
Plan Your Priorities: When deciding what to tackle first, it helps to categorize your goals. Think of your home in three ways: the must-haves (essential repairs), the nice-to-haves (upgrades that would make life easier), and the dream-state features (luxuries you can add later). This will help you prioritize and stick to your budget.

Remember, the perfect home is the one you perfect after buying it. By starting with a fixer upper, you have the opportunity to customize a home to your liking while saving money on the initial purchase price. With careful planning, budgeting, and a little bit of vision, you can turn a house that needs some love into your perfect home.

Real estate agents are great at finding homes with potential. WE know the local market and can guide you to homes where smart upgrades can add value. With our help, you’re more likely to find a house that fits your total budget and has room for worthwhile improvements.

Bottom Line

In today’s market, where the cost of homeownership can be intimidating, finding a move-in-ready home that fits your budget can feel like a real challenge. But if you’re open to putting in a little work, you can transform a fixer upper into your ideal home over time. Call me today so I can help you explore what’s possible and find a place that’ll work for you.

Why Use a Realtor? • October 28, 2024

Why Your House Will Shine in Today’s Market

by Steve Vavrek

Even though there are more homes available for sale than there were at this time last year, there are still more buyers than there are houses to choose from. So, know that if you’ve got moving on your mind, your house can really stand out.

There are several key reasons why there aren’t enough homes to go around and understanding them will help you see why the market is working in your favor if you’re ready to make a move.

What’s Causing the Shortage?

1. Underproduction of Homes: For years, the industry hasn’t built enough homes to keep up with demand. As Zillow explains:

“In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.”

2. Rising Costs: Building materials, labor shortages, and supply chain disruptions caused by the pandemic have all made it harder and more expensive to build homes. This can either limit or stop new home construction in some areas.

3. Regional Imbalances: Some markets are more affected by the shortage of homes than others. Popular and more desirable areas have more people moving in faster than new homes can be built. The number of new building permits issued doesn’t always keep pace with job growth in these regions, and that leads to even tighter markets and higher prices.

How Big Is the Problem?

According to estimates from Real Estate News, the U.S. is facing a housing shortfall of roughly 3.3 million homes, based on an average of several expert insights (see graph below):

This shows there’s a significant number of homes that need to be built just to meet current demand from buyers. But what about future demand?

According to John Burns Research and Consulting (JBREC), over the next 10 years, the U.S. will need about 18 million new homes to meet projected demand, including homes for new households, second homes, and replacements for aging or unusable homes.

So, even though more homes are on the market compared to last year, there still aren’t enough of them to go around. This is where you can really win if you’re ready to sell your house.

What You Need To Remember

If you’re thinking about selling, the shortage of homes for sale means your house is likely to get some serious attention from buyers. It’ll take years to climb out of this inventory deficit, and the market is still very tight. So, when buyers are competing for relatively few homes like they are right now, that creates more interest in the houses that are on the market, putting upward pressure on prices and ultimately working in your favor.

And since every market is different, it’s important to work with a real estate agent who understands local trends. They can help you price your house right and create a strategy to attract the right buyers.

Bottom Line

While there are more homes for sale than there were at this time last year, there’s still a shortage overall. And this puts you in the driver’s seat as a seller. Reach out to me and my team at BHGRE Gaetano Marra Homes as we can help you take advantage of today’s market.

Why Use a Realtor? • October 20, 2024

5 Hidden Closing Costs Homebuyers Often Overlook

by Steve Vavrek

If you’re about to buy a home, you might think you’ve budgeted everything. But are you prepared for all the fees that come with closing?

Nearly 91% of buyers in the Zillow Consumer Housing Trends Report 2024 said they encountered at least one unexpected cost during the closing process.

Let’s break down these fees and help you avoid the same pitfalls, so your closing day goes as smoothly as possible.

1. The Loan Origination Fee

For 66% of homebuyers, the loan origination fee was the most unexpected cost. This fee covers the lender’s administrative costs for processing your loan, and it can range from 0.5% to 1% of the loan amount. While it’s a standard charge, many buyers don’t fully anticipate it, and it can add thousands to your closing costs.

Ask your lender upfront about the loan origination fee and negotiate if possible. In some cases, lenders may waive part of this fee, especially if you shop around.

2. Appraisal Costs

Appraisals are a necessary part of the home-buying process to ensure the property’s value doesn’t exceed the loan amount. But did you know that 54% of buyers didn’t expect to pay for this out-of-pocket? Appraisal fees typically range from $300 to $500 but can vary based on your location and the size of the home.

3. Title Transfer Taxes

State and local governments often charge taxes to transfer the title of the home from seller to buyer. More than half of buyers (54%) were caught off guard by these fees, which can vary significantly depending on your location. Here in [Market], buyers can expect to pay [a flat rate / a percentage based on the home’s value].

4. Title Insurance & Search Fees

Title insurance and title searches ensure there are no legal issues with the property’s ownership. But for 51% of buyers, these were unexpected costs during the closing process. Title insurance is essential because it protects you from any disputes over property ownership, but it’s not always top of mind when calculating closing costs.

5. Closing Costs: Higher Than Expected for Many

Closing costs can include everything from attorney fees to recording fees. According to the survey, 42% of buyers had closing costs that were higher than they anticipated. First-time buyers, in particular, were more likely to be surprised, with nearly half (49%) saying their final costs were above their expectations.

Expect your closing costs to be anywhere from 2% to 5% of the purchase price. To avoid surprises, ask your lender for a Loan Estimate early in the process. This document breaks down your expected closing costs. You’ll receive a final Closing Disclosure three days before closing that details the exact amount—be sure to review this in full once received.

How to Avoid Surprise Fees

Now that you know the costs that surprised buyers the most in 2024, here’s how to avoid sticker shock at closing:

Ask Questions Early: Don’t be afraid to ask your lender and real estate agent about any potential fees upfront. The more information you have, the better prepared you’ll be.
Get Multiple Quotes: Whether you’re buying title insurance or closing services, shop around to ensure you’re getting the best rate.
Plan for Flexibility: Budget for more than you think you’ll need. Having a cushion in place for unexpected costs will make the closing process less stressful.

Buying a home is one of the most significant financial commitments you’ll ever make, and no one likes surprises—especially expensive ones. By understanding the common hidden costs of closing and planning ahead, you can go into your closing day confident and prepared. Whether you’re a first-time buyer or have purchased multiple homes, these fees can sneak up on you. The key is to ask questions, plan ahead, and make sure you have a buffer in your budget to cover those last-minute expenses.

Why Use a Realtor? • October 18, 2024

Why Buying Now Is Worth It

by Steve Vavrek

Some Highlights

You may be torn between buying a home now or waiting. But don’t forget to factor in the equity you’ll gain as prices rise.
Experts forecast prices will climb over the next 5 years – and based on those forecasts, you could gain about $90k in equity in that time.
So, you could wait, but you’ll miss out on a lot of equity if you do. If you’re ready and able to buy, let’s connect so you can start growing your wealth now.

Why Use a Realtor? • October 16, 2024

The Benefits of Using Your Equity To Make a Bigger Down Payment

by Steve Vavrek

Did you know? Homeowners are often able to put more money down when they buy their next home. That’s because, once they sell, they can use the equity they have in their current house toward their next down payment. And its why as home equity reaches a new height, the median down payment has too.

According to the latest data from Redfin, the typical down payment for U.S. homebuyers is $67,500—that’s nearly 15% more than last year, and the highest on record (see graph below):

Here’s why equity makes this possible. Over the past five years, home prices have increased significantly, which has led to a big boost in equity for current homeowners like you. When you sell your house and move, you can take the equity that gives you and apply it toward a larger down payment on your new home. That’s a major opportunity, especially if you’ve had concerns about affordability.

Now, it’s important to remember you don’t have to make a big down payment to buy your next home—there are loan programs that let you put as little as 3%, or even 0% down. But there’s a reason so many current homeowners are opting to put more money down. That’s because it comes with some serious perks.

Why a Bigger Down Payment Can Be a Game Changer

1. You’ll Borrow Less and Save More in the Long Run

When you use your equity to make a bigger down payment on your next home, you won’t have to borrow as much. And the less you borrow, the less you’ll pay in interest over the life of your loan. That’s money saved in your pocket for years to come.

2. You Could Get a Lower Mortgage Rate

Providing a larger down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage rate they’ll likely be willing to give you. And that amplifies your savings.

3. Your Monthly Payments Could Be Lower

A bigger down payment doesn’t just help you reduce how much you have to borrow—it also means your monthly mortgage payment may be smaller. That can make your next home more affordable and give you a bit more breathing room in your budget.

4. You Can Skip Private Mortgage Insurance (PMI)

If you can put down 20% or more, you can avoid Private Mortgage Insurance (PMI), which is an added cost many buyers have to pay if their down payment isn’t as large. Freddie Mac explains it like this:

“For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage. It is not the same thing as homeowner’s insurance. It’s a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%.”

Avoiding PMI means you’ll have one less expense to worry about each month, which is a nice bonus.

Bottom Line

Down payments are at a record high, largely because recent equity gains are putting homeowners in a position to put more money down.

If you’re thinking about selling your current house and moving, reach out to ME. I’ll help you figure out how much home equity you have right now, and how it can boost your buying power in today’s market.

If Selling - Tips • October 13, 2024

Home Renovation Trends and What Homeowners Need to Know

by Steve Vavrek

Are you thinking about updating your home? You’re not alone. Over the past five years, 94% of homeowners completed a major renovation project. Whether it’s a fresh coat of paint or a full bathroom remodel, staying on top of the latest trends can help you make smart decisions that add value and enjoyment to your home.

But here’s the catch—78% of those renovations came with budget overruns, and many also encountered unexpected delays and even regret. Today, we’ll dive into the top renovation trends and share tips to help you navigate your next project with confidence.

Renovating vs. Relocation

With rising home prices and mortgage rates, many homeowners are choosing to stay put and invest in their current property rather than move. According to Clever Real Estate, 63% of homeowners prefer to remodel their homes instead of moving into one that’s already updated. Whether it’s to improve comfort, repair damage, or boost resale value, renovations can help tailor your living space to fit your evolving needs.

But practical reasons are not the only ones driving these decisions—renovating offers an exciting opportunity to create a more personalized space. In fact, 45% of homeowners say they renovate simply because they want to, not because they need to. From bold new color schemes to modern kitchen layouts, home improvements let you unleash your creativity.

Top Renovation Projects

#1—Bathroom Remodels

One of the most popular renovations, bathroom remodels top the list, with 37% of homeowners tackling this space. Modern bathrooms emphasize spa-like elements, with features like rainfall showers, freestanding tubs, and sleek vanities making frequent appearances. Updating your bathroom can not only improve comfort but also offer a solid return on investment when it comes time to sell.

#2—Interior Painting

A simple way to refresh your home, interior painting continues to be a top DIY project, with 33% of homeowners giving their walls a fresh look in 2024. Neutrals like white and gray remain popular, though many are experimenting with bold accent walls and statement colors to add a personalized touch.

#3—Energy-Efficient Upgrades

HVAC upgrades are a practical renovation that’s seen a rise in demand, with 30% of homeowners choosing to invest in more energy-efficient heating and cooling systems. In a time where energy savings are more important than ever, these updates can make your home more eco-friendly and reduce monthly utility bills.

The Costs of Home Renovations—78% Exceeded Their Budget

While home renovations can boost the value and comfort of your home, they often come with unexpected expenses. Nearly 78% of homeowners went over budget on their last renovation, with 44% exceeding their budget by $5,000 or more. To avoid this, it’s essential to factor in a buffer for unforeseen costs, whether you’re working with a contractor or handling the project yourself.

One of the biggest decisions you’ll face is whether to go the DIY route or hire a professional. While hiring a contractor may save you time and deliver higher-quality results, it can also be more expensive. According to a recent survey, 53% of homeowners who hired contractors went over budget, compared to 42% of DIYers. Whichever path you choose, make sure to research and plan thoroughly to avoid the most common pitfalls.

On top of renovation costs, it’s important to always have some savings for home maintenance or unexpected repairs. In 2025, 85% of homeowners spent money on unplanned repairs, with nearly half saying these surprise expenses have exceeded their home maintenance expectations.

Renovation Regrets—and How to Avoid Them

While home improvements can transform your living space, not all projects go as smoothly as planned. Of those who have remodeled in the past five years, 74% have regrets.

The most common regret? Overspending and renovations taking longer than expected. The key to avoiding these regrets? Setting a realistic budget, managing your time wisely, and ensuring clear communication with contractors.

For younger homeowners like Gen Z and millennials, the focus is often on projects that boost resale value. Yet, this group is also more likely to experience regret, with 82% of millennials and 89% of Gen Z expressing some form of renovation remorse. If resale value is your priority, keep in mind that sometimes smaller, well-executed updates can offer a better return on investment than large-scale projects.

Final Thoughts: Make Your Renovation Count

Renovating your home is a big decision, but it can also be incredibly rewarding when done right. Whether you’re fixing up your forever home or adding value before selling, staying informed on renovation trends and potential challenges is key to success.