Jada’s Blog

Why Sellers Shouldn’t Measure Square Footage Themselves

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Marketing the square footage of a home can work against sellers. Buyers tend to want more space than they currently have, but if your home is on the small side, they may not even consider it. Your smaller home may actually be more comfortable and feel more spacious than one with a bigger but less efficient footprint. On the other hand, some homebuyers want a manageable space, so a big home could be viewed as too much maintenance and expense.

Professionals measure homes differently: some by exterior dimensions, others by room measurements using a laser or tape. Without a standard method, results vary, and accuracy can be uncertain.

Measuring your home yourself can lead to disputes and potential liability if buyers contest your figures.

Instead, use third-party data for square footage, such as a bank appraisal or property tax records. The original builder’s floorplan with measurements is even better. Ultimately, buyers want to know how much living space they’re getting for their money.

When is it Worth it to Refinance Your Mortgage?

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Refinancing your mortgage is worth it if you get a lower interest rate, a shorter term, or a smaller monthly payment. According to The Mortgage Reports, it’s usually beneficial if you can lower your mortgage interest rate by one percentage point. For a $400,000 loan, reducing the rate from 6.5% to 5.5% saves $257 per month, nearly 20% of the payment. With $8,000 in closing costs, you’ll need to keep the loan for 2.6 years to break even.

You can ask your lender about a no-closing-cost refinance, where you pay a slightly higher interest rate, but avoid upfront costs. This strategy allows you to sell your home anytime without penalty. Alternatively, you can roll closing costs into your new loan, ideal if you plan to stay for several years. You’ll pay more interest, but it can be cheaper than a higher-rate, no-closing-cost loan.

You can also replace an adjustable-rate mortgage with a fixed 30-year term, or switch a 30-year loan to a 20- or 15-year term. Principal payments will be higher, but the interest rate will be lower.

Inspection Findings That Should Alarm You

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When you purchase a home, you have the right to have the property professionally inspected. Any inspection can reveal issues, but what matters is whether a problem is fixable, what that might cost, and whether you or the seller will pay for it

Here are a few items that should alarm you:

A seller’s disclosure with no useful information: Sellers should let you know if they’ve fixed leaks, replaced roof tiles or had a sewer line replaced. If the home is older, you need to know if asbestos or lead paint has been removed.

A damp, musty odor in the bathroom: You can’t go behind walls or under floorboards, but your nose can tell you there’s a problem. If the bathroom looks clean and smells dank, there could be a hidden leak.

Systems at the end of their lifespan: If the roof is 15 to 20 years old, you’ll have to replace it in a few short years.

Signs of bad DIY work: DIY homeowners can cut corners, ignore code violations and use the wrong materials.

How to Prepare Your Outdoor Spaces for Fall and Winter

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According to the National Association of REALTORS®, late October to mid-November is the perfect time to plant, weed, prune, and mulch, so your yard looks nicer and your plants will be protected during the winter.

  1. Trim trees of dead branches for your own and neighbors’ safety. November-March is an ideal time to prune trees to prevent branches from blowing against the house.
  2. Get rid of leggy shrubs and plant new ones. Plant new shade trees with leaves that change color.
  3. Clean out flower beds and re-mulch with a layer of “wood chips, tree bark, leaves or other organic material.”
  4. October-November is the ideal time to plant bulbs before the ground freezes. You can also plant pansies, ornamental kale, ornamental cabbage, and other cool-season annuals.

Pull weeds from the lawn after a rain so they’ll be easier to pull out by the roots. They’ll be less likely to reappear in the spring.

Will Mortgage Interest Rates Keep Going Down?

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Homebuyers saw a turning point in interest rates as of June 2024. The Federal Reserve decided not to raise overnight borrowing rates, keeping them at 5.25%-5.50%. This is a sign that inflation is moving closer to the Fed’s 2% target. However, the Fed anticipates only one rate cut by year-end, which could impact the housing market.

Mortgage rates have decreased to their lowest levels since March 2023 but remain around 7% for the 30-year fixed mortgage. This rate is typically available only to those with excellent credit and a 20% down payment, which might explain why housing sales are 10% below mid-2023 levels.

Most economists expect rates to drop slightly by the end of 2024. Fannie Mae predicts an average rate of 7%, while the Mortgage Bankers Association, Realtor.com, and Wells Fargo forecast a drop to 6.5%. The difference between 7% and 6.5% is $122 per month on a $400,000 mortgage.

Talk to your Berkshire Hathaway HomeServices network professional for insights on the current market, as buying now might be advantageous if home prices are rising.