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6 Ways to Lose at Negotiating a House Price

by The Schnoor Team

Real estate negotiation tips so you can buy your dream home — and not overpay.

You've looked at enough houses to fill an entire season of House Hunters and finally picked one to buy. Now you're ready to make an offer.

Your agent can help guide you through this nail-biting phase of negotiating a house price, but ultimately, you call the shots. Here's how to negotiate like a boss.

Fail #1: Thinking House Price is All That Matters

That house with a price point $15k below your budget? It may seem like a deal — until you add on the costs of maintenance and replacing the aging appliances.

Planning on repainting, remodeling, or landscaping, too? Suddenly the price looks a whole lot higher.

When developing your offer, calculate in the costs that will go above and beyond a mortgage payment. Then you can negotiate with an eye on the total cost of owning the house, not just the sticker price.

On the flip side, the price may not be all that matters to the seller, either.

She may have to start a job on the other side of the country in a month and value a quick closing. Or she may be looking to rent from you for a bit after the sale until her next home is ready. Sometimes being accommodating is negotiation gold.

Fail #2: Refusing to Back Down on Small Repairs

Before you draw a line in the negotiation sand over, say, a deck with some rotten boards, ask yourself if it's worth losing the house over a repair that would cost less than a thousand dollars.

Say the house price is $250,000, which makes that deck repair less than half of one percent of the cost of the house. There's a lot of emotional energy at this point in the process, so give yourself a break rather than dickering over it.

A house negotiation is not about winning for the sake of winning. It's about getting the house you want at a fair price on good terms.

Fail #3: Waiving Formalities Because You're So in Love With the House

Don't be so blinded by house love that you do something silly like skip some of the formalities of home buying, such as the home inspection or the appraisal, in an effort to close the deal.

Those steps, and others like a termite or septic inspection, are known as contingencies. They're there to protect you from ending up with a six-figure money pit.

Imagine how quickly the house-honeymoon would end if you found a termite colony or that the identical house across the street sold for much less?

Besides, if you're taking out a mortgage, your lender won't let you skip an appraisal because they don't want to loan money on a house that isn't worth the loan amount. So even if you want to make it easy for the seller, your lender may stop you.

There are other ways to sweeten your offer and get that house:

  • Pay some of the seller's closing costs.
  • Offer a fast close.

If this is your first house, speed is an ace up your sleeve because you can move faster than someone who can't buy a new house until they sell the old one (another type of contingency).

And remember, while there's a lot of emotion tied up in choosing a house, it's still a business deal.

Fail #4: Getting Hung Up On a Few Grand

You offered $198,000. The seller won't budge from $200,000.

Before you walk away, consider this: Two grand is a lot of money, but in the house-buying world it's not so much. At an interest rate of 4%, with 20% down on a 30-year mortgage, that additional $2,000 will add just $8 a month to your payment.

If you can swing it -- maybe you can cut a small thing out of your budget each month -- it could be worth it.

Fail #5: Folding Because the Inspection Turned Up Issues

A good home inspection is going to turn up something. Usually several somethings. That's good. It means the inspector is doing their job. It's a rare day when a home passes inspection with no problem at all.

Plus, many things that turn up on an inspection are easily handled. You can ask the seller to do the repairs or knock some off the price so you can pay for repairs.

And while some problems may seem scary at first, like a roof leak or plumbing problem, they're almost always fixable and negotiable.

Fail #6: Offering Less Because the Decor is Hideous

The faux-Tiffany swag lamp and trippy orange-and-brown wallpaper make your eyes itch. So you're planning on offering less — way less.

Before you do that, know the market. If it's a seller's market, your offer may be seen as an insult especially if the home's in good shape. And just like that, you've lost your dream home.

When you're ready to make that offer, look past the little stuff that you can easily change, and focus your negotiations on what matters, like the location and the bones of the house.

Source: "6 Ways to Lose at Negotiating a House Price"

Summer Home Maintenance Tips — Specifically for June

by The Schnoor Team

Invest in quality tools while they’re on sale this month.

Temps start to soar in June when days start to get longer.

Stop your energy and water bills from soaring, too, with these summer home maintenance tips:

#1 Stop Buying Cheap Tools

Happy Father's Day to everyone: It's tool-sale month! Repairs and home improvement projects go much smoother with quality tools — and you'll like the results more. This month, take advantage of sales to buy quality brands for less, or buy used tools at a local auction or estate sale. Then ditch those make-do tools that have always frustrated you.

#2 Stop Heat-Drying Your Dishes

You're already paying extra to pump cool air into your house. Don't pay even more to use the heat-dry setting on your dishwasher. It can double your electrical load.

Instead, open the dishwasher immediately after it runs, and pull out the racks. The evaporating steam will speed-dry the dishes. Some dishwashers have an air-dry button that will automatically prevent heat drying.

#3 Stop Watering Your Lawn So Much

Lawns are a bit picky about their drinking schedule. Rather than daily soaks, they prefer deep, infrequent watering, which promotes deeper root growth. In general, lawns need about 1 inch of water per week. In a well-watered lawn, you can stick a screwdriver 6 to 8 inches into the dirt without resistance.

#4 Stop Putting Bricks in the Toilet

Summer may be water-conscientiousness season, but putting a brick in your toilet is the wrong means to that well-meaning end. Brick crumbles when exposed to water for too long. Instead, switch to a high-efficiency toilet. At $100-$300 per toilet, the $230 annual water savings is worth it. Or just swap your brick with a half-gallon milk jug filled with sand.

Source: "Summer Home Maintenance Tips — Specifically for June"


NEW MEXICO FILM TRAILS

by The Schnoor Team

Visit your favorite Film Locations

With over 360 days of sunshine and a stunning, diverse topography, New Mexico is not new to Hollywood. New Mexico film history spans over 100 years and includes more than 600 productions. Film has reached every corner of the State from “Transformers” on location in the dunes of White Sands National Monument to “Indiana Jones and The Last Crusade” along the Cumbres Toltec Railroad outside of Chama.

Since 2003 alone, over 205 major productions have shot all over New Mexico. Visit New Mexico State Film Office’s Filmography to see the gamut of storylines filmed right here, statewide, featuring a host of celebrities from Faye Dunaway to Johnny Depp. Now you can visit many of these film locations by downloading movie maps provided under each region listed below.

Tour New Mexico in true style: eat at the restaurants and stay at the hotels of your favorite stars or featured in your favorite shows. It’s an exciting way to experience New Mexico and another way to make New Mexico a True Adventure.

Source: "NEW MEXICO FILM TRAILS"

Sharp Homeowners Know June Is the Best Time to Do These 5 Things

by The Schnoor Team

Like cleaning your siding — just be sure to start from the bottom and go up.

Could it really be summer?!

Tackle these five summer maintenance tasks during June's longer days and better weather — and save yourself time and money this winter.

#1 Update Outdoor Lighting

In June, winter nights are probably the last thing on your mind. But early summer is the perfect time to plan for those "OMG it's only 4:30, and it's already dark " moments by adding or updating landscape lighting.

The most energy-efficient, easy-to-install option is solar lighting, but it won't perform as well on dark or snowy days. For light no matter the weather, install electric.

LED bulbs last up to five times longer and also use less energy than comparable bulbs.

#2 Clean Your House's Siding

With a bit of preventative maintenance, your home's siding will stay clean and trouble-free for up to 50 years. Fifty years! Clean it this month with a soft cloth or a long-handled, soft-bristled brush to guarantee that longevity.

Start at the bottom of the house and work up, rinsing completely before it dries. That's how you avoid streaks.

#3 Focus on Your Foundation

There's no better time for inspecting your foundation than warm, dry June. Eyeball it for crumbling mortar, cracks in the stucco, or persistently damp spots (especially under faucets). Then call a pro to fix any outstanding issues now, before it becomes an emergency later.

#4 Seal Your Driveway Asphalt

Your driveway takes a daily beating. Weather, sunlight, cars, bikes, and foot traffic – all of these deteriorate the asphalt. Help it last by sealing it. Tip: The temperature must be 50 degrees or higher for the sealer to stick, making June a good month for this easy, cost-effective job.

#5 Buy Tools

Thanks to Father's Day, June is the month everyone can get a deal on tools, tool bags, and that multitool you've had your eye on. If it's time to replace a bunch of tools, or you're starting from scratch, look for package deals that offer several at once. These can pack a savings wallop, offering 30% off or more over buying the tools individually.

Source: "Sharp Homeowners Know June Is the Best Time to Do These 5 Things"

 

The Tip I Learned While House Hunting That Changed Everything

by The Schnoor Team

Nope, we weren’t ready to buy a fixer upper. Here’s how we figured that out.

Profession: He's a meter reader for an electric company, and she's a pattern maker for a swimsuit company.

When Drew Ader and his wife, Meg Dewey, decided they were ready to buy a house, they knew exactly what they wanted: a fixer-upper. After years of watching home makeovers on TV, they wanted a house they could get for a song and transform into exactly what they wanted. They'd gain the value of sweat equity and have their dream house.

Instead, they ended up buying a house that was totally move-in-ready, no hardhats needed. Here's how they went from wanting a "before" house to buying an “after" one.

So, you wanted a fixer-upper. I bet you're big HGTV fans and dreamed of Chip and Joanna Gaines-style makeovers.

Drew: Yes, we are big fans of Chip and Joanna! Who isn't? We watch all of the HGTV shows and have always talked about wanting to do our own fixer-upper so we could make our home exactly what we want. We also thought that we might be able to save some money by doing the work ourselves. We wanted to spend around $225,000 [on the home purchase, before renovations].

Have you ever done a home renovation before?

Drew: No. Neither of us has experience fixing houses, but they make it look so easy on TV that we considered giving it a try.

So tell us about the house hunt.

Drew: We looked at fixer-uppers. We looked at a lot of different houses, some that needed to be completely gutted and were considered distressed properties, and some that needed only a few rooms updated and renovated. We were trying to get a house that was around $100,000 less than the market and redo it to save money.

Did you just look at fixer-uppers?

Drew: Initially, yes. Lisa [Johnsen, their agent] was great throughout the whole process, giving us ideas on how we could fix up the houses and pointing out things we should be looking for that, as first-time homebuyers, we would have missed — like an aging septic system or mold.

But she suggested we look at some houses that were already done, too, before we decided. That way we could see what you got if you paid for a house where someone else had done the work vs. what you got if you bought [a house] that needed renovation. So we looked at some houses that had been renovated and flipped by others, and some that just didn't need a whole lot of work.

What made you decide that a fixer-upper wasn't for you? What was the a-ha moment?

Drew: After seeing the prices of the fixer-uppers vs. the ones that were done, and considering the amount of work and money we would have to put into a house to make it what we wanted, we decided looking at move-in-ready houses would be a smarter decision. It would've been too much work trying to balance working 40-plus hours a week and fixing a house. Paying more for a house was preferable for us to buying one that was cheaper and renovating it. Lisa helped us see that.

So what did you end up buying?

Drew: We ended up purchasing a turnkey home. It has four bedrooms, 2,550 square feet, plus a finished basement. It had the exact floor plan we were looking for — one large great room. It just happened to be a turnkey home and in the upper end of our price range, which was honestly the best of both worlds. There was nothing that had to be fixed before we moved in; it was all just cosmetic things to make the home feel like ours.

So no sledgehammers were involved?

Drew: No. When we moved in, the first thing we did was repaint the basement in fresh, modern paint colors. Now we have moved upstairs and are working on the main floor powder room, as well as the foyer and hallways. We haven't had to do any demo on any rooms, mostly just painting, except in the bathroom where we are repainting the vanity, installing a new vanity top, and putting up a fun Joanna Gaines wallpaper.

But, shiplap?! Any shiplap?

Drew: Nope. We're not that handy.

Do you have any advice for someone who is thinking about buying a fixer-upper?

Drew: Go for it if you're a handy person who has the time to do the renovations. With the right house, you could save money. But it's harder than it looks. Just doing little cosmetic upgrades in our house has taken a lot longer than I expected. I couldn't imagine if we had to redo an entire house. They make it look so easy [on TV], and I have a lot of respect for what they do on all of those shows.

What's your favorite thing about your house?

Drew: The pellet stove! It is so easy to use and maintain — much easier than a wood-burning fireplace, which we thought we wanted. It works so well and is a big time and money saver during the winter. We also like that we didn't have to spend a year working on our house and can sit by the stove instead.

Source: "The Tip I Learned While House Hunting That Changed Everything"


How We Bought Our First Home: Getting a Mortgage When Self-Employed

by The Schnoor Team

Two freelancers buy their first home in a sellers’ market.

After nine years in a 550-square-foot apartment, Kaitlin Wadley and Bryce Bordenkecher were ready for more space and their own place. And since Kaitlin works from home, they weren't just shopping for a house; they were shopping for a workplace, too. But they had a challenge: These creative professionals were both self-employed. Getting a mortgage can be a little harder when you're a freelancer.

Professions: She's a freelance illustrator who also runs an online vintage clothing store; he's a photo retoucher.

Home style: 103-year-old bungalow

Sale price: $249,900

Year of home purchase: 2018

City: Minneapolis

Names: Kaitlin Wadley, 30, and Bryce Bordenkecher, 32

Plus, they were in a seller's market, with houses getting multiple offers as soon as they were listed. Here's how they made it work.

You'd been in the same apartment for nearly a decade. What finally made you say, “House. Now."?

Kaitlin: I work from home. I was like, “I need out of this tiny apartment.” I was the one pushing to buy. I wanted another cat, and we needed more room for that, too.

Did you know what kind of house you wanted?

Kaitlin: We wanted something older, with architectural details. We didn't want anything built after 1950. We didn't want a 1970s house covered with carpet and paneling.

What was the first thing you looked at?

Kaitlin: A condo, because it was cheap, $150,000. It was seven blocks from where we were living, and it was in a 1915 building. We went the first week it was listed and put in an offer. It wasn't accepted. We realized we needed to be serious.

And being serious meant?

Kaitlin: Zeroing in on what we wanted. You couldn't just casually browse in that [seller’s] market. We sat with [our agent] Mike Smith and had a candid conversation about what we were looking for in a house. The style, condition, number of bedrooms, price range, and neighborhood. He took us on a first round of showings, so he could get an idea of what we wanted.

Then he set up a custom search that would email us new listings every night that fit our criteria, and we would go through those and see if there were any we wanted to look at. You had to put in an offer that minute in that market, so screening the houses helped us move faster.

How long did you shop before you found The One?

Kaitlin: Two-and-a-half weeks. But we looked at a lot of homes. We saw a three-bedroom house we liked and decided we wanted to make an offer, only to be told that the seller had accepted an offer while we were looking at it. We had to pick up the pace of things because homes were going fast.

 

How did you know that a bungalow was the house for you?

Kaitlin: The size and the architecture were right. It's Arts and Crafts, a style that goes with any type of furniture. It had two bedrooms, so we would have one to use as an office/studio space and one to sleep in. We liked the neighborhood, and there were mature trees in the yard. It didn't need a lot of work. The price was right, too.

You were in a tough market. Was it hard to get the house?

Kaitlin: There were three offers in addition to ours. One was an escalating offer. But the owner took ours because our agent has a good relationship with the seller's agent. He convinced the seller to take our offer. I don't know why, but I think it was because we were a young couple buying our first house.

Getting a mortgage when you don't have a W-2 is tougher than when you do. What was it like for a couple of self-employed creatives to get a six-figure loan?

Kaitlin: It was tricky. Bryce had two years where his income was, like, $16,000 less from one year to the next, because he had taken on fewer clients. He had to provide a couple of years [of tax returns] to show it was a one-time dip. He also had to write a letter explaining that it was because he had taken on [fewer] clients.

[The lender] didn't ask for lists of clients, and we were glad. A friend of ours who's a freelancer referred us to our broker, and I think the fact that [our broker] had worked with freelancers in the past probably worked in our favor.

What type of mortgage did you get?

Kaitlin: We went with traditional. We had enough to put 20% down without using up our savings, and we didn't want a mortgage where we had a lower down payment because it felt good to get a chunk of that house paid for.

What's your advice to first-time home buyers?

Kaitlin: Don't start looking until you have saved up your down payment. Get an agent. It's worth it to get one to help you hone your search. Know what you're willing to compromise on because the faster you can come to a consensus on a house, the better.

There's also a really scary period between when the offer is accepted and your financing is secured and when you close on the house. It's totally normal to get cold feet and worry you've made a mistake. Chances are, you haven't.

Finally, did you get that cat you wanted?

Kaitlin: Yes. We got our fourth one when we knew we were moving. It was another one of those things where I had to convince [Bryce]. Now that's his favorite cat.

Source: "How We Bought Our First Home: Getting a Mortgage When Self-Employed"

Mouth-Watering Outdoor Kitchens (And Surprise! Their ROI Is Great)

by The Schnoor Team

What they typically cost, and tips for getting the most return on your investment.

Building an outdoor kitchen is more than an indulgence: These backyard beauties can improve your home's value. Outdoor kitchens typically get a 71% return on investment, according to the "Remodeling Impact Report" from the National Association of REALTORS® — and that's on top of your own outdoor-cooking joy.

The investment can be a little — or a lot. These five outdoor kitchen ideas fit a range of budgets and homes.

#1 A Tiny Outdoor Kitchen for Limited Spaces

If you boil down an outdoor kitchen to the basics, what more do you need than a grill, a little oven, cupboard space, and a cozy place to sit? This setup does it all efficiently, for as little as a few hundred dollars if you already have outdoor electricity. An electrician will add to the cost.

#2 An Outdoor Kitchen From a Kit

Modular kits, like this one from WWOO (starting around $1,500), can be customized to suit your backyard. Some companies even offer design help for additional cost.

The galley-inspired layout here also does double duty by adding privacy. (Keep in mind the cool outdoor sink requires additional plumbing, which will increase the cost.)

#3 An Outdoor Kitchen Made of Concrete & Steel

DIY-savvy homeowners used concrete and cement board to create this L-shaped outdoor kitchen that mimics today's indoor layouts. Guests relax at the counter while the host flips burgers — it's open-concept living in the great wide-open.

No, this isn't DIY 101, but if you've got the skill set you can do it for the cost of materials — and concrete is cheap. If you hire a pro, though, the typical cost is about $14,000 for a kitchen that includes an inset grill, steel drawers, ice chest, sink, and concrete countertop, according to the "Remodeling Impact Report."

#4 An Outdoor Kitchen With Personal Style

Your outdoor kitchen doesn't have to look like everyone else's. But it should match your home's style if you want to get a return on your investment. This DIY kitchen fits the home's rustic style and comes with enough storage any indoor cook would envy.

#5 An Outdoor Kitchen That Says "Sit a Spell"

Your outdoor kitchen can play the same role in your yard that your kitchen inside does: as the heartbeat of every gathering where guests will want to stay awhile. And bonus: The added deck and pergola could also kick up your home value a couple of notches.

Source: "Mouth-Watering Outdoor Kitchens (And Surprise! Their ROI Is Great)"

 

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