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Prioritizing Your Wants And Needs As A Homebuyer

January 5, 2023 by khproperties Leave a Comment

There’s no denying mortgage rates are higher now than they were last year. And if you’re thinking about buying a home, this may be top of mind for you. That’s because those higher rates impact how much it costs to borrow money for your home loan. As you set out to make a purchase this winter, you’ll need to be strategic so you can find a home that meets your needs and budget.

Danielle Hale, Chief Economist at realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.”

In other words, it’s important to be mindful of what’s a necessity and what’s a nice-to-have when searching for a home. And the best way to understand this is to put together a list of desired features for your home search.

The first step? Get pre-approved for a mortgage. Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s out of reach. Once you have a good grasp of your budget, you can begin to list (and prioritize) all the features of a home you would like.

Here’s a great way to think about them before you begin:

Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).

Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.

Your Winter Home Selling Checklist

December 28, 2022 by khproperties Leave a Comment

As you get ready to sell your house, add these items to your to-do list. A real estate professional will also provide other helpful tips based on your specific situation. Have questions, let us know.

Highlights of the Winter Home Selling Checklist

As you get ready to sell your house, focus on tasks that make it inviting, show it’s cared for, and boost your curb appeal.
This list will help you get started, but don’t forget, a real estate professional will provide other helpful tips based on your specific situation.
Let’s connect so you have advice on what you may want to do to get your house ready to sell this season.

What You Need To Know About Home Prices

December 24, 2022 by khproperties Leave a Comment

If you’re trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.

What’s Really Happening with Home Prices?

It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.

While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:

As the graph shows, it’s true home price growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher mortgage rates. This is what the headlines are drawing attention to today.

But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.

The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.

What Does This Mean for Your Home’s Equity?

While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).

The big takeaway? Don’t let the headlines get in the way of your plans to sell. Over the past two years alone, you’ve likely gained a substantial amount of equity in your home as home prices climbed. Even though home price moderation will vary by market moving forward, you can still use the boost your equity got to help power your move.

As Mark Fleming, Chief Economist at First American, says:

“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”

If you have questions about home prices or how much equity you have in your current home, contact one of our agents and they will be happy to sit down with you and crunch the numbers.

Ready To Sell? Today’s Housing Supply Gives You Two Opportunities

December 23, 2022 by khproperties Leave a Comment

At first glance, the increase in housing supply compared to last year may not sound like good news for prospective sellers, but it actually gives you two key opportunities in today’s housing market.

An article from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you’ll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 35% below the housing supply we had at that time.

Housing Supply is Still Historically Low

Take Advantage of More Options for Your Move

If your current house no longer meets your needs or lacks the space and features you want, this inventory growth gives you even more opportunity to sell and move into the home of your dreams. With more houses on the market, you’ll have more to choose from when you search for your next home.

Partnering with a local real estate professional can help you make sure you’re up to date on the homes available in your area. And when you do find the one, a professional can advise you on how to write a winning offer.

Sell While Inventory Is Still Low Overall

But again, despite the growth, inventory is still low compared to more normal years, and that isn’t going to change overnight. For you, that means your house should still be in demand among potential buyers if you price it right.

As an article from realtor.com says:

“Today’s shoppers generally have more homes to consider than last year’s shoppers did, but the market is still not back to pre-pandemic inventory levels.”

If you’re a homeowner looking to sell, you have more homes to choose from and can still sell your house while inventory is low overall. Let’s connect to get started, so you can have the best of both worlds.

What To Expect When You Buy A Fixer Upper

January 20, 2022 by khproperties Leave a Comment

It feels like you can’t turn on the TV and flip through the channels without seeing a home improvement show, but don’t be taken in by their simplicity. Remodeling your home is far more complex and usually more expensive than TV pundits lead you to believe. When they even bother to price the items of a project, the labor costs are often conveniently forgotten because they can be 50% of the total expenditure. Contractors don’t appear out of nowhere, and gardeners won’t just magically appear with half a forest for the backyard. You’ll learn an incredible amount about property ownership if you purchase a fixer-upper and set about a major renovation. But if you’re a first-time buyer who’s looking for a bargain to renovate, remember that while it’s a great strategy, you’ll need to be prepared for hard work before you enjoy the incredible satisfaction of creating a wonderful home.

Here’s a quick guide of what to expect to get you started:

Ignore TV shows: Nothing will put you in a world of renovation pain than believing the pricing you see in reality TV shows. Labor costs are a fundamental reality and rarely rate a mention. Budget for the real world.
Create a budget and then some: The most important aspect of remodeling a home is to create a budget that you can afford and then stick to it. But remember most renovations cost more than you think. Experts recommend you keep aside 20% of the project’s cost in case of problems.
Quotes come in writing: Always insist on receiving an estimate in writing rather than believing a verbal estimate that might be contested or ignored later. When the invoice comes in, you may find yourself with a nasty surprise.
Expertise counts: If your budget will stretch, call in the experts. An architect, lighting consultant and interior designer will transform your project. And given you’re investing in your most significant financial asset, consider the dollar value they might add.
Advice vs Opinion: Friends will offer their ideas and opinions, and architects and contractors will provide advice. Be sure to know the difference. Ultimately, the decisions are on you and you’ll need to live with the consequences of your choices.
Focus on you: Unless you want to flip the property, then remodel for your lifestyle and don’t worry about fashions or fads. If you’re flipping, the reverse is true. Make decisions that will maximize the sale price.
Minimize your role: Hire a general contractor who’ll coordinate sub-contractors for the entire project. Avoid the hassle of organizing tradespeople. One bad apple will throw out your timeline and cause friction with the others.
Stop and shop: It can be a good idea to avoid buying materials from multiple suppliers all over town. That quickly gets very confusing, especially when it comes to delivery schedules. Ideally, purchase from only one or two suppliers.
Be tactile: Don’t rely on the internet when you shop. Faucets can look amazing online but turn out to be cheap and nasty when you open the box. Go to each store and literally touch the items you want to buy. Ask for swatches of cloth and colours, buy tester cans of paint, and take your time with all your decisions.

image courtesy of rocinante11

Time To Make Your Laundry Room Shine

January 12, 2022 by khproperties Leave a Comment

The humble laundry room is emerging as an influential part of the home for today’s buyers and renovators. Upstaged by new kitchens, many buyers rarely gave a thought to the laundry room beyond its practical function – until now. New interior designs and increasingly sophisticated washing machines have put ways of doing the wash at the front and center of many buyers’ thinking when viewing a home. Revamping your laundry room and making it a center or storage and organization can be a worthwhile upgrade before you put your home on the market. The room has become a hot button for buyers.

If you have a laundry room that needs a facelift, here are eight tips for a great renovation project.

Quality appliances: You can’t go wrong with installing excellent appliances. American and European brands are winners. Buyers love to see a front-loader washing machine next to a dryer.
Faucet favorites: The combination of a quality faucet and basin is critical to the success of a laundry. A swivel faucet is essential. You might also want to consider one where the hose can be pulled out and retracted. If you’ve got a dog, it makes washing them a breeze.
The look: Give your laundry room some style. You’ll find inspiration on the internet from sites like Pinterest and Houzz. If you’re selling your home shortly, keep the same color scheme as the rest of your home or use neutral colors and tiles.
Storage savvy: The laundry room is often the dumping ground for items that don’t belong anywhere including sports equipment that is out of season. So, focus on storage solutions to keep your space clutter-free.
Closet caper: Staying on the storage theme, you probably keep mops, brooms and vacuum cleaners in the laundry room. Consider installing a thin vertical cupboard to put them out of sight with specialized grip fittings to hold them upright.
Workspace: A striking aspect of a modern laundry room is bench space. If you can supplement that with a fold-down ironing board attached to the wall, that’s even better.
Stay dry: A rail above head height to dry shirts and dress on hangers is another popular inclusion because not everything can be thrown into a tumble dryer.

6 Signs That It’s Time To Downsize

January 4, 2022 by khproperties Leave a Comment

It can be challenging to know the right time to downsize your home. It can be a very emotional experience. Your home is full of memories of raising a family and sending young adults out into the world. You spent good days and bad in there. You’ve laughed, cried, and celebrated. So, it’s understandable that when you’re moving towards retirement. you might be reluctant to leave behind the sanctuary that has played such an important role in your life. Knowing the right time to make your move is critical. Avoiding a decision can often result in health issues forcing your hand. Houses can become too big to maintain and take a physical toll when you mow lawns or climb ladders to fix a leaking roof or clear leaves from gutters. Based on real situations, we’ve been able to make a list of signs that tell you it’s time to downsize. We hope you find them useful.

Do you feel like you’re rattling around in your home?
Once everyone has moved out, it can often feel like the house has become too big. Rooms are never used and only cleaned because they collect dust. You may find you’re living in a particular part of the home, often to contain utility bills. If this is you, then it’s definitely time to explore your downsizing options.

Do you feel overwhelmed by your property?
This is another issue that crops up regularly. Feeling overwhelmed by the maintenance required in a larger home quickly creates stress and that’s not good. Everyday tasks such as cleaning or sweeping walkways and patios become burdens. The idea you have to climb a ladder for a simple maintenance task might fill you with dread.

If you feel you cannot look after your home as you once did, then downsizing is your wisest course of action. Once you decide to act, you’ll be amazed at the relief you’ll feel.

You can never find what you’re looking for?
This is a significant frustration for many. Their memory isn’t necessarily failing, but it’s common to struggle to find car keys or credit cards in a large home when there’s so much opportunity to put them down carelessly. Of course, you can overcome this challenge by being more organized. However, we all know that’s easier said than done!

Are the stairs becoming harder to climb?
Time catches up with all of us eventually, and you don’t need to be wielding a walking stick to start to find stairs are harder to climb or to descend first thing in the morning. Your home shouldn’t become an obstacle course. If you’re having trouble getting around the property, then it’s time to leave.

Will you travel more in retirement?
If you’re planning to enjoy long trips, especially in retirement, then carrying the cost of maintaining a large, empty property doesn’t make sense and becomes an added stress to come home to. It would be best if you considered a smaller home and even think about moving into an apartment or condo with security to reduce any concern on that score.

Parents can also set up a trust so they can enjoy retirement without having to worry about their children’s future. Those who have invested in real estate properties as part of their retirement portfolio must not forget to update their estate plans and plan ahead for the succession of these assets. Those who need help in estate planning may look for a lawyer who has sufficient knowledge and experience.

Do you have the “utility bill blues?”
Retirement is a wonderful time of life, but it usually cuts into your cash flow. Spending money on heating or cooling your entire home is wasteful when you use only a percentage of it. We have worked with many people who became more stressed by these quarterly bills than anything else. If this sounds familiar, it’s a smart move to act. If you buy wisely, a smaller home like a condo or apartment, especially one in a complex should reduce your outgoing cashflow. Your costs will be more consistent, too, and that will help with your household budget.

When you decide to downsize, you may need to rent a storage unit from a self storage facility for a short while until you determine what to do with your belongings that will not have space in your new home. You may ask your neighbors or your real estate agent for recommendations on =self storage facilities.

Is An Open Floorplan The Right Style For You?

December 27, 2021 by khproperties Leave a Comment

Open floorplan living is often billed as the perfect floor plan, bringing family together in a single room where cooking, conversation and the screen share the same space. It has been a popular feature of a home for two decades and more. However, a small but noisy school of thought now suggests it’s time to revert to the old formula in which rooms have a specific purpose. As experienced agents, we have seen real estate fashions come and go and come again. Perhaps you’re seeking an open floorplan layout for your dream home, or maybe thinking that smaller rooms are easier to maintain, and heat and cool.

If you’re searching for a home right now, we’ve pulled together a list of benefits and drawbacks to open floorplan living. It might help you consider a broader range of properties if you’re aware of all the pros and cons of various designs and floor plans.

Open Floorplan Benefits

A living area where no boundaries lie between leisure and the kitchen will be a magnet for the entire family at least twice a day. Interaction is essential for a harmonious household – especially if you have teenagers – and open floorplan living helps you achieve this.
Young families will benefit because it is far easier for mom or dad to keep an eye on young children. It also avoids the temptation to pack them off to their bedroom or playroom, where they won’t see you or talk to you.
For anyone who loves entertaining, open floorplan living is essential. You can slave over your stove while not being excluded from your guests or supervise homework while cooking the evening meal.

Open Floorplan Drawbacks

It’s usually the highest maintenance area of the home. With so many activities going on, there’ll inevitably be a mess at the end of the day. For example, folks often use the island bench as a dumping ground for bags and keys. If you love a tidy home, you might find yourself continually cleaning.
It’s a privacy killer. Without a sound barrier, it’s hard to read a book when the TV is on or there’s a conversation in the kitchen. When the phone rings, everyone else in the room is asked to keep quiet, or you’ll need to take the call elsewhere.
Decorating an open floorplan area can be tricky. Furniture needs to match and be of a similar size. The visual balance of an open floorplan area can be ruined if your couch is far larger than your dining table.

Nine Mistakes To Avoid With A New Kitchen

December 21, 2021 by khproperties Leave a Comment

No room carries more influence with a buyer than the kitchen because it’s where the everyone gathers and many memories are made. The kitchen can represent up to 20% of the entire value of a property, so it’s important to make sure it is both functional and attractive. With this in mind, we’ve compiled a list of the common mistakes that we’ve seen in our daily lives as real estate agents to help guide you when you upgrade your kitchen.

Stay on budget
Set a spending limit. The cost of renovating a kitchen can go into six figures if that’s what you really want. So, be disciplined and work out what you can afford and what will offer a return on your investment. Talking this through with your agent can be a big help.

Going DIY
Unless you’re a kitchen designer, then put your new kitchen into the hands of experts. They know the tricks to maximize space and storage. They’ll also be familiar with the latest trends, which change all the time.

Follower of fashion
Don’t choose popular, fad colors that will date the kitchen in a few years. Keep your ambitions stylish and traditional, especially if you plan to sell in the short to medium term. Many buyers might not share your taste, and your hard work and money will have been for nothing.

Small countertops
It’s a mistake to try and create more floor space by sacrificing the countertop. You need to plan the use of every square foot of a kitchen, and priority needs to go on where you prepare your meals.

Storage shortage
It’s fashionable to take the gadgets off the countertops these days to deliver an uncluttered appearance. Every kitchen needs lots of storage, not just for equipment but food and drinks, too. Buyers will walk through your kitchen, opening and closing doors to see if the storage meets their expectations. They love corner-storage spaces.

Smoke gets in your eyes
Never forget the importance of ventilating your kitchen. A vent fan will push the smoke and smells outdoors so the rest of the home doesn’t take on the smell of old cooking.

Poor lighting
Illuminate the sink and areas where you will prepare food and eat. During viewings, agents will turn on the lights, as this makes the home feel bigger. Badly positioned lighting in a kitchen can be exposed.

No plug, no play
A common mistake is to have insufficient electrical sockets, especially around the countertop, where you will use a blender, juicer, coffee maker, and so on.

Waste of space
Be smart about where you place your trash. External bins on the floor are unsightly and unpopular. Your new kitchen should integrate a bin into a cupboard, preferably under the sink.

9 Ways To Avoid Housefires

December 15, 2021 by khproperties 1 Comment

A fire in your home can happen at any time of the year, but with colder months upon us it’s easy to see how the danger increases with the setting of wood-burning heaters and the use of candles to create a cozy atmosphere. Most fires start in the kitchen and are caused by neglect. You set something on the stove and then get distracted by the phone, children, or daily life – it happens that easily. Heaters are the second most common cause of a house blaze and, of course, the risk of this increases in the winter months when we find ourselves trying to warm up just a bit.

Signs that your wiring needs an upgrade include lights dimming when you use an appliance and regularly blown fuses or trips of your circuit breaker. If that’s the case, call a professional electrician immediately.

As we head into winter, here is a list of potential issues and how to ensure you and your family stay safe.

Install and test your smoke alarms. Make sure the battery is in good condition (change them every time you set your clocks back). When you’re sleeping, you won’t smell the smoke. Research suggests you might fall into a deeper sleep.
Check your chimney to ensure there is sufficient airflow. If your chimney blocks up, smoke will pour back into the residence. The collection of dirt and soot represents a fire risk. It’s a good idea to clean your chimney annually. Even if you don’t use your fireplace very often, other problems can occur that could lead to a devastating fire, so have it checked out and cleaned.
Another annual exercise is a check of electric blankets if you have them. Watch for loose wires and cords that have frayed. If in doubt, throw it away. They’re not expensive to replace.
Portable heaters are a great cold weather solution but don’t put them near curtains or tablecloths. If you need to dry clothes, leave them at least 1m away from the heater. Think of it as social distancing for clothes!
Electrical overload is always a risk if you load up one power point. Avoid doing so and always unplug and disconnect appliances that are not being used.
Before you hire an electrician, lookup his license number. It is important that any electrical installation work is carried out by people who have the knowledge, skills and experience needed to avoid the dangers that electricity can create.
Another appliance danger lurks in the laundry. Check your dryer for lint build up. Clean away anything that shouldn’t be there. It doesn’t take much for lint to light up. The #1 cause of house fire is dryer vent maintenance.
Candles in the living room, or even when you’re soaking in a bath, are romantic and relaxing. But you must extinguish them when leaving the room for an extended period or going to bed.
Kids and matches are not a good combination. Always stow matches, lighters and fireplace lighters out of their reach. A common mistake is to keep a gas stove top lighter in a handy drawer.
Never leave cooking unattended, especially if you’re deep frying. Fat fires can destroy a kitchen in minutes and are one of the most common causes of fires.