Buyer Tips • November 1, 2023

How Homeownership Can Bring You Joy

by Cari Shumaker

If you’re trying to decide whether to rent or buy a home, you’re probably weighing a few different factors. The financial benefits of homeownership might be one of the reasons you want to make a purchase if you’re a renter, but the decision can also be motivated by having a place that’s uniquely your own. If you want to express yourself by upgrading and customizing your living space but are feeling held back by your rental agreement, it might be time to consider the perks of owning your home.

A Little Change Can Bring Lots of Joy

There’s a significant level of pride that comes from owning a home. That’s because it’s a space that truly belongs to you. A recent report from the National Association of Realtors (NAR) shows making updates or remodeling your home can help you feel more at ease and comfortable in your living space. NAR measures this with a Joy Score that indicates how much happiness specific home upgrades bring. According to NAR:

“There were numerous interior projects that received a perfect Joy Score of 10: paint entire interior of home, paint one room of home, add a new home office, hardwood flooring refinish, new wood flooring, closet renovation, insulation upgrade, and attic conversion to living area.”

The report also breaks down just how much each of these projects can enhance your emotional attachment to your home, even leading you to want to spend even more time in the space (see graph below): And while many of the items NAR highlights are larger tasks, some, like painting rooms, are much smaller. Even those quicker projects can still bring you a greater sense of joy and accomplishment. Not to mention when you make upgrades in your home, you could be increasing its value which also gives your net worth a boost if you invest your time and effort wisely.

You’re Free To Update Your Home to Your Heart’s Content

These types of updates can result in additional happiness when you complete them, but there’s another reason you can feel good as a homeowner. In most situations, you’re free to renovate or update the interior of your home without needing additional permission. But as Business Insider points out, renters may not have the same freedom:

“Your landlord won’t always approve changes when you rent. But you have the power to update the home when you’re the owner. (Just make sure any big changes are approved by your homeowner’s association, if necessary.)”

If you do make changes as a renter, there’s a good chance you’ll need to revert them back at the end of your lease based on your rental agreement. That can add additional costs when you move out. That’s one major benefit of owning your own home. Unless there are specific homeowner’s association requirements, you typically won’t have to worry about the changes you can and can’t make.

Bottom Line

Deciding whether to rent or buy is a personal decision. The financial benefits are critical, but don’t overlook the emotional impact homeownership can have. Let’s connect to discuss all the benefits you can enjoy when you purchase your own home.

Bottom Line

Uncategorized • November 1, 2023

Benefit of Buying Vs Renting

by Cari Shumaker

𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐁𝐮𝐲𝐢𝐧𝐠 𝐯𝐬. 𝐑𝐞𝐧𝐭𝐢𝐧𝐠

One of the most significant financial decisions in life is choosing between buying a home and renting. Each option has its pros and cons, but for many, the benefits of buying outweigh those of renting.

𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐄𝐪𝐮𝐢𝐭𝐲 𝐎𝐯𝐞𝐫 𝐓𝐢𝐦𝐞

When you buy a home, you’re not just finding a place to live—you’re making an investment. Each mortgage payment you make contributes to building equity in your home. Over time, as your home hopefully appreciates in value, your equity grows even more. This is a form of forced savings that can serve you well in the long term. On the flip side, rent payments don’t contribute to any long-term ownership or financial gains.

𝐓𝐚𝐱 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬

Homeownership can also offer various tax benefits, such as the possibility to deduct mortgage interest and property taxes from your income tax. Depending on your specific circumstances, these deductions can make a significant difference in your annual tax liability. Renting does not offer these same financial advantages.

𝐆𝐫𝐞𝐚𝐭𝐞𝐫 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐚𝐧𝐝 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲

Owning a home gives you control over your living space. You can decorate, renovate, and even add to the property as you see fit. There’s also a level of stability that comes with homeownership; you don’t have to worry about a landlord raising your rent or selling the property out from under you.

𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞𝐬: 𝐀 𝐂𝐥𝐨𝐬𝐞𝐫 𝐋𝐨𝐨𝐤

Now, let’s address the elephant in the room: interest rates. Sure, the idea of paying even an 8% interest rate on a mortgage might make you pause, especially when rates have been historically lower. But it’s essential to put this into perspective. When you’re renting, the money you pay each month essentially acts like a 100% interest rate; it doesn’t build equity or contribute to your future financial stability. So even if you’re looking at a higher interest rate for a mortgage, remember that part of that monthly payment goes toward owning a piece of property, not into a landlord’s pocket.

Buyer Tips • November 1, 2023

Are Grandparents Moving To Be Closer to Their Grandkids?

by Cari Shumaker

During the pandemic, many people distanced themselves from their loved ones for health reasons. Grandparents were told to stay away from their grandkids, especially as schools started to open. That’s because it would have been risky to visit with their grandchildren who may have gotten sick from school.

Now that the pandemic has passed, many grandparents want more than ever to be near their grandchildren again to make up for that lost time. But how are they getting that “Grandparent Wish?” The data tells us many are moving to make sure they’re getting more quality time.

Grandparents Are Moving To Be Near Loved Ones

Recent data from the National Association of Realtors (NAR) shows people between the ages of 55 and 74 are moving farther (more than 100 miles) than any other age group (see graph below):

The average age of grandparents in the U.S. is 67 years. The logical leap is that at least some of the people who are moving the furthest are grandparents. But what’s causing them to move so far?

The same report from NAR shows the top reason people move is to be closer to loved ones (see graph below):

Based on this data, it’s fair to say many grandparents are getting their wish of more quality time with their grandchildren by moving to be closer to them. And after experiencing isolation and loneliness during the COVID pandemic, that’s an especially good thing.

If you’re a grandparent, you know how important your grandchildren are. And you may be willing to sell and move just to be closer by. As Vance Cariaga, a journalist at Go Bank Rates, explains:

“Never underestimate the power of grandchildren – especially when it comes to lifestyle and financial decisions. Recent data shows that many baby boomers are relocating further away from home than they used to so they can be closer to their grandbabies.”

Bottom Line

The data shows grandparents are moving further to be near their grandchildren. If you have grandchildren of your own, maybe you can relate. When you decide it’s time to be closer to your loved ones, let’s connect.

Buyer Tips • Home Seller Tips • November 1, 2023

What Are Accessory Dwelling Units and How Can They Benefit You?

by Cari Shumaker

What Are Accessory Dwelling Units and How Can They Benefit You?

Maybe you’re in the market for a home and are having a hard time finding the right one that fits your budget. Or perhaps you’re already a homeowner in need of extra income or a place for loved ones. Whether as a potential homebuyer or a homeowner with changing needs, accessory dwelling units, or ADUs for short, may be able to help you reach your goals.

What Is an ADU?

As AARP says:

“An ADU is a small residence that shares a single-family lot with a larger, primary dwelling.”

“An ADU is an independent, self-contained living space with a kitchen or kitchenette, bathroom and sleeping area.”

“An ADU can be located within, attached to, or detached from the main residence. It can be created out of an existing structure (such as a garage) or built anew.”

If you’re thinking about whether an ADU makes sense for you as a buyer or a homeowner, here’s some useful information and benefits that ADUs can provide. Keep in mind, that regulations for ADUs vary based on where you live, so lean on a local real estate professional for more information.

The Benefits of ADUs

Freddie Mac and the AARP identify some of the best features of ADUs for both buyers and homeowners:

Living Close by, But Still Separate: ADUs allow loved ones to live together while having separate spaces. That means you can enjoy each other’s company and help each other out with things like childcare, but also have privacy when needed. If this appeals to you, you may want to consider buying a home with an ADU or adding an ADU onto your house. According to Freddie Mac:

“Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.”

Aging in Place: Similarly, ADUs allow older people to be close to loved ones who can help them if they need it as they age. It gives them the best of both worlds – independence and support from loved ones. For example, if your parents are getting older and you want them nearby, you may want to buy a home with an ADU or build one onto your existing house.

Affordable To Build: Since ADUs are often on the smaller side, they’re typically less expensive to build than larger, standalone homes. Building one can also increase your property’s value.

Generating Additional Income: If you own a home with an ADU or if you build an ADU on your land, it can help generate rental income you could use toward your own mortgage payments. It’s worth noting that because an ADU exists on a single-family lot as a secondary dwelling, it typically cannot be sold separately from the primary residence. But that’s changing in some states. Work with a professional to understand your options.

These are a few of the reasons why many people who benefit from ADUs think they’re a good idea. As Scott Wild, SVP of Consulting at John Burns Research, says:

“It’s gone from a small niche in the market to really a much more impactful part of new housing.”

Bottom Line

ADUs have some great advantages for buyers and homeowners alike. If you’re interested, reach out to a real estate professional who can help you understand local codes and regulations for this type of housing and what’s available in your market.

Buyer Tips • October 31, 2023

Affordable Ways For Gen Z to Buy a Home in Hood Canal, Kitsap Peninsula, Belfair, and Allyn

by Cari Shumaker

Affordable Homeownership Strategies for Gen Z

The idea of owning a home has always been a big part of the American Dream. It’s a symbol of stability, independence, and having a place to truly call your own. But for Gen Z, the “Zoomers” born between 1997 and 2012, making that dream a reality can feel like quite the challenge today with higher mortgage rates and rising home prices.

But achieving that goal of owning your first home on or around the Hood Canal and the Kitsap Peninsula can still be attainable, even today, with some strategic planning and resourcefulness.

Explore Down Payment Assistance Options to help you buy a home in Hood Canal and Kitsap Peninsula

With prices rising all around the Hood Canal and Kitsap Peninsula, it can be hard to save up for a home. If you’ve been struggling to stash away enough cash for that down payment, it’s worth it to look into the various down payment assistance programs available. These programs can really help you save big on the upfront costs of buying a home.

There are a lot more options to help you buy a house in Belair or surrounding areas than you may realize. According to Down Payment Resource, there are over 2,000 programs designed to help hopeful homebuyers with down payments and closing costs.

If you qualify for one of these programs, you may not need to save up as much money for your down payment. A local real estate agent can help you explore these programs in your area, making it much easier to turn your homeownership dream into a reality.

Consider Living with Relatives To Save

If you still need a bit more time to save, even with the down payment assistance programs out there, there are ways you can make that happen. Many savvy Zoomers have made a strategic choice to live with relatives so they can get to their savings goals even faster.

According to the National Association of Realtors (NAR), around 30% of Gen Z homebuyers transition directly from their relative’s home to a home of their own.

By sharing living costs, such as mortgage payments, utility bills, and even grocery expenses, you can substantially reduce your monthly expenses. This frees up more of your income to tackle any outstanding debt, boost your credit score, and reach your down payment target in less time. And, all of this can bring homeownership one step closer to becoming a reality. Clare Trapasso, Executive News Editor at Realtor.com, explains:

“Faced with ongoing housing affordability issues . . . we’re seeing parents and children becoming roommates again in later years as the ‘kids’ save up to purchase their own place . . .”

The Road to Homeownership

When you’re on the path to becoming a homeowner, it’s a good idea to get some help along the way. And one of your best resources on this journey as a young homebuyer is a trusted real estate agent. They’ll steer you through the process of buying a home and help you find one you can afford.

Bottom Line

For Gen Z, the path to homeownership may not be straightforward, but it’s still within reach. With the right strategies, you can turn your dream of owning a home into a reality.

Interest Rates • October 17, 2023

Are Higher Mortgage Rates Here To Stay?

by Cari Shumaker

Navigating Rising Mortgage Rates in the Kitsap and Hood Canal Areas: What You Need to Know

Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):

That can feel like a little bit of a gut punch if you’re thinking about making a move, especially if you plan on buying on the Kitsap Peninsula and all around the Hood Canal as our inventory remains low and our prices high. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.

How Higher Mortgage Rates Impact You Here on the Kitsap Peninsula

There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.

Urban Institute explains how this is impacting buyers and sellers right now:

“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”

Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?

Where Will Mortgage Rates Go from Here?

If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.

Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.

The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states:

“If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”

Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.

Bottom Line

The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.

Home Seller Tips • October 5, 2023

Leveraging Your Home Equity to Navigate Today’s Affordability Hurdles

by Cari Shumaker

Your Home Equity Can Offset Affordability Challenges

Are you thinking about selling your house? If so, today’s mortgage rates may be making you wonder if that’s the right decision. Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is home equity. Here’s what you need to know.

Bankrate explains exactly what equity is and how it grows:

“Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.”

In other words, equity is how much your home is worth now, minus what you still owe on your home loan.

How Much Equity Do Homeowners Have Now?

Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic says:

“. . . the average U.S. homeowner now has about $290,000 in equity.”

That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the market has started to normalize, there are still more people wanting to buy homes than there are homes available for sale. This high demand is causing home prices to go up again.

According to the Federal Housing Finance Agency (FHFA), the Census, and ATTOM, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below):

That means nearly 70% of homeowners have a tremendous amount of equity right now.

How Equity Helps with Your Affordability Concerns

With today’s affordability challenges, your equity can make a big difference when you decide to move. After you sell your house, you can use the equity you’ve built up in your home to help you buy your next one. Here’s how:

Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy a new house without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. The National Association of Realtors (NAR) states:

“These all-cash home buyers are happily avoiding the higher mortgage interest rates . . .”

Make a larger down payment: Your equity could be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money so today’s rates become less of a sticking point. Experian explains:

“Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender.”

Bottom Line

If you’re thinking about moving, the equity you’ve built up can make a big difference, especially today. To find out how much equity you’ve got in your current house and how you can use it for your next home, let’s connect.

Home Seller Tips • October 5, 2023

Unpacking the Puzzle: Why Your House Didn’t Sell and What to Do Next

by Cari Shumaker

Why Your House Didn’t Sell

If your listing expired and your house didn’t sell, you’re likely feeling a little frustrated. Not to mention, you’re also probably wondering what went wrong. Here are three questions to think about as you figure out what to do next.

Did You Limit Access to Your House?

One of the biggest mistakes you can make when selling your house is restricting the days and times when potential buyers can tour it. Being flexible with your schedule is important when you’re selling your house, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime advises:

“. . . do your best to be as flexible as possible when granting access to your house for showings.”

Sometimes, the most determined buyers might come from far away. Since they’re traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It’s simple. If no one’s able to look at it, how’s it going to sell?

Did You Make Your House Stand Out?

When selling your house, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact upfront. As an article from U.S. News says:

“After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.”

But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Additionally, a new coat of paint or cleaning the floors can go a long way to freshening up a room.

Did You Price Your House Compellingly?

Setting the right price is extremely important when you’re selling your house. Even though it might feel tempting to push the price higher to maximize your profit, overpricing can scare away buyers and make it hard to sell quickly. Business Insider notes:

“. . . the biggest mistake sellers make is overpricing their home.”

If your house is priced higher than others like it, it could make buyers lose interest. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.

For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it sold.

Bottom Line

It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Let’s connect to figure out what happened and what to reconsider or change if you want to get your house back on the market.

Uncategorized • October 5, 2023

Blog Title: Debunking the Myth: Home Prices Are on the Rise, Not Falling

by Cari Shumaker

The housing market has been the subject of considerable debate and confusion lately, especially if you’ve been paying attention to some of the more ominous headlines. Last year’s predictions of a housing crash in 2023 had many questioning home prices and the resilience of the residential real estate market. If you found yourself wondering whether to hit the pause button on your own housing plans, take a deep breath and read on. Here’s what you really need to know.

If it made you question if you should delay your own plans to move, here’s what you really need to know.

Home Prices Never Crashed

Disregard what you saw in the headlines. The actual data shows home prices were remarkably resilient and performed far better than the media would have you believe (see graph below):

This graph uses reports from three trusted sources to clearly illustrate prices have already rebounded after experiencing only slight declines nationally. That’s a far cry from the crash so many articles called for.

The declines that did happen (shown in red), weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), says:

“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”

Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you home prices aren’t falling anymore – they’re actually going back up.

What’s Next for Home Prices?

The consensus from experts is that home price growth will continue in the years ahead and is returning to normal levels for the market. That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.

Some news sources will see home price growth slowing and put out stories that make you think prices are falling again. The return of misleading headlines like those is already having an impact on how homebuyers are feeling again. You can see how this affects general opinion in the Consumer Confidence Survey from Fannie Mae (see graph below):

While the percentage of Americans who think prices will fall has been slowly declining this year, the latest Consumer Confidence data indicates that’s ticked back up recently (shown in red). This change is surprising especially since the home price data shows prices are going up, not down. It tells you the impact the media still has on public opinion.

Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.

Bottom Line

Don’t let sensational headlines cloud your judgment or derail your plans. The real data affirms that home prices are not on a downward spiral but are in fact rising again.

Need someone to help you cut through the media noise? Let’s connect. I’m here to give you the accurate, straightforward information you need about what’s really happening in our local market.

Uncategorized • July 28, 2023

Navigating High Interest Rates: A Seller’s Guide to the Kitsap Peninsula Real Estate Market

by Cari Shumaker

One effective strategy is to start with a price on the lower end of the market value. This can actually work wonders by attracting a larger pool of potential buyers. When there’s increased competition among buyers, it often leads to higher purchase prices – a win-win situation!

On the flip side, going for a high initial price and then having to reduce it due to lack of interest can negatively impact your net profits. According to Brian Icenhower’s article on Real Estate Coaching, pricing a home too high might cause it to linger on the market, raising questions in potential buyers’ minds. This perception could lead to lower offers, resulting in a less favorable final sale price compared to competitive pricing from the get-go.

Going for a competitive price or even slightly below market value has its perks. It can attract multiple offers, which naturally drives up the price. Plus, it gives you, the seller, more negotiating power, potentially leading to waived contingencies, higher deposits, and other favorable terms.

And let’s not forget about visibility. Pricing a home 15% above market value can deter a whopping 90% of potential buyers. However, pricing at market value attracts around 60% of buyers, and going below market value can reel in even more.

So, the bottom line is clear – a well-thought-out pricing strategy is crucial if you want to maximize your profit, especially in a competitive real estate market.

Remember, first impressions count! A well-staged home can capture buyers’ hearts and help them envision themselves living there.

Concentrate on key areas like the kitchen, living room, and master bedroom. Keep these spaces clean, decluttered, and decorated in a neutral style to appeal to a wide range of potential buyers.

In today’s digital age, exceptional marketing is essential to stand out from the crowd.

High-quality photos and virtual tours allow potential buyers to explore your home online, creating a strong initial connection before they even visit in person.

Utilize online platforms to reach a broader audience. List your home on popular real estate websites and promote it through social media to generate more interest.

Accessibility is key to attracting as many potential buyers as possible.

Being flexible with showing schedules increases the chances of your home receiving multiple visits and, ultimately, an offer.

While it’s essential to be accommodating, don’t forget to balance your personal life. Consider setting specific showing hours or using a lockbox system to manage showings efficiently.

Mastering the art of negotiation is essential to secure the best deal.

Negotiations encompass more than just the sale price. Consider factors like terms, conditions, and contingencies when working with potential buyers.

Choosing the right time to accept an offer can be challenging. Weigh factors such as the buyer’s financial stability, contingencies, and your personal circumstances before making a decision.

Congratulations! You’re well-equipped to navigate the seller’s market on the Kitsap Peninsula and maximize your profit. By pricing your home competitively, staging it to impress, leveraging high-quality marketing, being flexible with showings, and negotiating effectively, you’ll set yourself up for a successful home selling journey. Best of luck, and may your real estate adventure be filled with happiness and prosperity! 🏡✨