Move Smart Solutions Blog

When people think empty nest, they either dread the thought or they can't wait. They think about having a quiet house and maybe some time to travel. Others dread the quiet without their children in and out all of the time. Many people start to think about downsizing to a smaller home when their children move out. However, that can feel very overwhelming with a house full of treasures.

Here are some tips to make downsizing a little easier.

•   Start early. Start as soon as possible to make the process go smoother. If you wait until right before you move, you will quickly get overwhelmed and end up just throwing a lot of things away.

•   Work at it slowly.Take a few minutes every day instead of trying to do it all at once. Maybe you would feel better to do a room at a time. Take a drawer at a time. Find a way that works for you and stick to it. Just start making progress and keep working at it slowly until you get through it.

•   Figure out what you really can’t get rid of.It is hard to realize that you can’t take everything with you. Make a list of things that you have to take, like photo albums and other sentimental albums.

Many homeowners felt stuck during the housing decline when their homes weren’t worth as much on the open market as they had paid. Now more homeowners make the jump from a starter home to a better, more spacious home as home values dramatically increase across the country. Even if you still owe more on our mortgage, it’s possible to become a move up buyer. Being “underwater” on a mortgage isn’t as much of an issue as many homeowners simply rent out their current home so they are free to pursue a step up home in a more prestigious and safe neighborhood. According to a recent piece by the SunSentinel, a new report shows fewer people are underwater on mortgages. Negative equity peaked in late 2011 in South Florida and other markets affected by the housing boom.

•   Avoid a strategic default

Real estate experts advise against a strategic default or no longer making mortgage payments. If you do have equity in your home, it’s prudent to avoid taking out a second mortgage or home equity line of credit before hunting for a new construction home. Move up buyers should also avoid refinancing to take out equity or cash before pursuing a home purchase.

•   List your home at a higher price

If you don’t want to rent out your current home, consider listing it at a price that is the same or just slightly lower than you originally paid. With the housing market booming, you will likely be surprised to find your home is worth significantly more than it was just one or two years ago. Some homeowners pay the difference between the amount they owe on the mortgage and the final sales price if the difference is small.

If you find yourself going to your parents for help to buy a first home or step-up home, you aren’t alone. According to a new report by loanDepot cited in a U.S. News & World Report article, 17 percent of parents help their children ages 18 to 38 buy a home. Before asking your parents for financial assistance to buy real estate, brush up on the benefits of new construction homes such as energy-efficiency, less maintenance and safety. The report showed parents have already helped financially or plan to help with the future financing of a child’s home. Seventy-five percent of the millennials surveyed who had bought a home said they couldn’t have done it without the financial gift from parents.

Communicating about options

When a parent provides financial assistance, they often want to make sure their children invest wisely in a home. Your parents will likely feel nervous about the prospect of you investing in a foreclosure or distressed property. When you take them to visit a new home community, they often see the value of owning in a better area. Your parents have a vested interest in making sure you are in a good home in a good neighborhood. Master-planned communities often provide amenities including recreation for children and adults.

Finding different ways to help

If you are selling your starter or entry-level home that you bought during the housing boom, you might walk away with very little cash for a down payment on a nicer, step-up home. Depending on your parents for a financial gift matters in terms of affording a more spacious and higher-end home. According to the study, in the last 5 years 65 percent of parents contributed to a down payment on a home for their millennial, while 25 percent covered other expenses, 24 percent helped with closing costs and 21 percent co-signed a mortgage. After reviewing your financial paperwork and information, your lender will advise you on what kind of help will be most advantageous for you.

Empty nest retirees who desire new homes which are smaller, and more in tune with their new lifestyles, tend to pick Active Adult Communities, shares a March 6, 2015, New York Times online article titled, Retirement in a Community, but Which One? Here, Margaret A. Wylde, CEO of the ProMatura Group--a market research firm--explained, "Of those ages 55 to 65, 4.5 % move each year...(and) 20% of people in this group looking for a home want to live in a 55-plus community." A Maryland couple interviewed for this article expressed what many retirees feel--They wanted "something smaller on less land."

Susanne Matthiesen, director of aging services at CART International, an agency that accredits services for empty nesters, also advised, "Ask yourself what you want to do from today forward." Then, prioritizing wants and needs becomes more clear.

This New York Times article goes on to suggest empty nesters ask themselves the following questions as they choose their ideal retirement communities:

1. Do you want to live close--but not too close--to family? How close is "too close?"
2. Do you want to reside alongside folks who are just a little younger than you? Or, would you prefer neighbors who are more your "age peers?"
3. Will selling your current home and using some of your savings afford you enough of a new-home down payment? Or, must you consider working part-time to (possibly) cover association fees? (A realtor can smooth your move!)
4. Would your ideal community be located in an urban, or a rural, area?
5. Do you desire extra services like lawn and landscaping, or housekeeping?
6. Will you need a "recreation manager" who schedules activities for you?
7. Are you an "extremely active" empty nester who likes to swim, walk or hike, play tennis and golf? If so, your community should provide indoor/outdoor pools, trails, courts and courses.
8. Are you an "intellectual" interested in current affairs who would take full advantage of seniors' classes offered at nearby universities?
9. Will you be primarily socializing with family and friends who live near your community, or do you see community-living as an "adventure" where you'll make tons of new friends?

No matter how empty nesters might answer these questions, Ms. Wylde and Ms. Matthiesen offer the following suggestions for those who've tentatively picked out an active adult community:

1. "Visit several times to evaluate the construction of the houses, (and) the safety and security."
2. "Talk to people who live there."
3. "If you have friends who live in the community, plan a visit."
4. "Find out what the association fees include." Are "internet, utilities, lawn and landscaping" covered?
5. "Ask whether you can stay overnight...for two or three nights." Then, "use the community amenities."
6. Socialize with current residents to ascertain if the "atmosphere" or "culture" of the community is one that appeals to you.

Contact us for information about our Move Smart Solutions "right size" program, in which we help you move down in home value--but not in comfort and efficiency--by listing and selling your current home at significantly reduced commission rates. 

With the economy in a strong upswing it is now easier to obtain a mortgage even if you think your credit score might not be that great. 

When your family gets bigger or you find the home of your dreams just where you want to live you have the choice of selling your old home or becoming a landlord and leasing your home. If you owned the home for a limited time and have not accumulated a lot of equity in it, or if your home is underwater under today's real estate conditions and you owe more than the house is worth, leasing the house has definite financial advantages.

However, being a landlord has its own pitfalls and difficulties.

•   If you want good tenants, you have to fix up the home before renting it out. This could involve major expense unless you are extremely handy.

•   Between tenants you can expect one to two months of downtime where you will have to cover the old mortgage and the new one.

•   Repairs to cover damage caused by the tenant are the owner's responsibility. This is especially true if the house is damaged in a way that involves health or safety.

Many years ago, houses for sale on the real estate marketplace were often empty, especially newly constructed homes. Staging a house makes it appeal to the highest number of potential buyers, selling the property quicker and for more money.

 Statistically Speaking

 According to Home Staging Resources, in a survey of over 3,500 staged homes, 50% of them sold for an average of 11% more and obtained a 1,000% return on their staging investment. Non-staged homes spend an average of 90 days or more on the open market compared to a staged home selling in only eleven days according to these statistics.

 Why It Works

One of the reasons that staging is so effective is that a potential buyer often has a difficult time seeing possibilities in an empty environment. Vacant houses also seem smaller and less appealing without dressing and furniture. Conversely, homes filled with the owner's possessions can sometimes seem cramped, outdated, messy or cluttered even if they are not.

If you are living in a starter home watching home improvement shows, you are likely dreaming of a step-up home with modern porcelain tile floors, quartz countertops and an overall luxurious living space. Spring and summer are good times to sell a home, but the fact that so many millennials want to own is creating even more demand. A recent article by Consumer Affairs revealed that homeowners did better than renters during the recession. If you held your home through the Great Recession, you likely came out ahead with greater net worth than that of renters. Researchers at Washington University at St. Louis reported renters had to deal with higher rents that prevented them from investing. Having dealt with the high cost of rent, many people in their 20s and 30s are looking for starter homes, while others are ready to become move-up buyers.

Giving your home a designer look

While touring new construction homes for your next home, you can get ideas for ways to improve your home to sell. Most young buyers wish they could buy a new construction home, but often can’t afford one. If you own an entry-level home, you can make inexpensive improvements so you don’t over-improve to the point that potential buyers can’t afford your house. Some ideas include replacing white countertops with laminate counters in designs that resemble granite, changing out old ceramic tile with new modern colors. Also, change out old gold door knobs with stainless steel or brushed nickel levers.

Making it move-in ready

According to a piece by Consumer Affairs on millennials embracing homeownership, most millennials plan to stay in the home they buy for at least 10 years. Because many young people have friends or family burned by foreclosures and shorts sales in bad condition, it’s important to make the repairs and improvements before listing your home for sale. Also, many millennials became accustomed to the renter’s lifestyle, which includes property management. The key is to make a home move-in ready without going over budget.

If your new construction project has you as giddy as a school girl, or as excited as you were to meet your first-born, you're not alone. It's finally time to own the home you've been pinning about, ripping pages out of magazines for, and dreaming of for years. However, there are a few simple factors to know about, and expect, that will make the construction process a lot easier.

• Hire a Listing Specialist: You'll need to hire a realtor, or listing specialist to sell your current home. Forbes suggests, "Buying or selling a home is a major financial (and emotional) undertaking. A realtor will help you negotiate complicated contracts, have easy access to property, and are licensed professionals obligated by law to serve your best interests." A firm like Move Up America can pair you with an expert Realtor to sell your home, from a real estate professional that has a solid reputation, the ample experience necessary to guide you seamlessly through this intricate process, and the ability to offer you reduced commissions and rebates.
• Know the basics of the builders' process: First the builder will prepare the site, and pour the foundation. The first inspections will occur at this phase. Rough framing, plumbing, electrical, and HVAC will happen next. Insulation will then be installed. Drywall and interior finishes can be added after insulation, and then exterior finishes like siding can be completed. More inspections will happen to make sure everything is up to code.
• The Fun and Finishing Touches: This is the good part, where the wish-list comes in. Drainage, grading, driveways, patios, and final landscaping can happen now. Then, it's time for hard-wood floors, crown molding, quartz counter-tops, exposed beams, beautiful architecture, and farm sinks. Once these final additions are made, the plumbers, and HVAC contractors will come back and finalize their work. Then it's time for the final inspection and walk-through.

Please contact us if your family is ready to move up, in need of more space, looking for a professional estimate on your home's current value, or interested in the amazing options available to you in the housing market. And learn how moving up and into new construction can be a truly rewarding experience.

A lot of people grew up in mid-century modern homes from the 1950s or ‘60s. Some new home builders today build homes inspired by simplicity, clean lines and angled roofs. New-Century modern homes provide homebuyers with a lot more square footage since many original vintage homes have only 1,000 to 1,500 square feet of living space. It’s a great time to sell your mid-century modern or other older home and become a move-up home buyer. Interest rates are still extremely low. According to a recent article by freshhome, there are easy ways to bring the mid-century modern flair to your home. When staging your home to sell, consider buying modern furniture you can use now and take for your newly built home.

• Using real wood

To get the look of new-century modern, you can use engineered hardwood floors or porcelain tiles engineered to look like real wood grain. However, when selling a vintage home, you should let real wood take the center stage. Some of the popular wood used in mid-century homes, according to freshome, include walnut, oak, teak and rosewood.

• Installing pendant lighting

Modern pendant lights are trendy in a new-century modern home that you can have built by a reputable new home builder. When staging your starter home to sell consider using vintage pendant lights and fixtures with an artistic edge such as stunning globe lights in bold colors.

• Showcasing the bar

To create an authentic mid-century modern feel in your home for sale, include a built-in bar for mixed drinks. If you don’t want to spend the money, consider a bar cart. When decorating a new home, a modern twist on the 1950s bar is a coffee bar for making homemade gourmet coffee.

• Reflecting with mirrors

Mirrors were a popular way to accessorize and make a mid-century modern home appear larger. Use mirrors as part of your staging, especially if you can show a landscape in the distance. Other important décor items inspired by the 1950s and ‘60s include shag area rugs.

Buying a newly constructed home is great, but first you have to sell your old home, and stories about homes on the market for months or years with ever-increasing price reductions can make this idea pretty scary. Figuring out how to sell a home in today’s market is daunting, but it doesn’t have to be. The following 4 steps can speed up the sale of your old home and get you into that new construction sooner.

Step 1 is the most important step of all; price your home strategically. To do this find a real estate agent who can compare your home’s size, features and condition against recently sold homes in the same market, and determine how to price it at the best value in its price range. What is strategic pricing? Check out this article from the Houston Chronicle. Overpricing a home will cost you potential buyers, and result in lowered list prices and more time on the market, until ultimately selling for less than it probably should.

Step 2 is to make a great impression, and this is one step most people already know about, although making a great impression on the greatest number of people may require some tough decisions. Much that makes your home a home can also get in the way of selling it to someone new. Toss or store non-generic items like decorative flags and lawn ornaments, art, toy, or other collections you proudly display, magazines and newspapers, toiletries, clutter, and any evidence of pets. Your goal is to create a living space other people can picture themselves living in. When in doubt, ask your real estate agent for advice.

Step 3 is to invest time and money on small projects, like re-grouting tile, repainting, refinishing the basement, or getting a new front door. This step is easier after you complete step 2, because removing personal items (like the five shampoo bottles on the edge of the tub) can reveal potential projects (like removing the mold on the grout between the tub and the wall). Don’t get carried away during this step though, because you may not get the returns you expect from big renovations. Check out this link on Today.com for 8 tips to sell your home this spring.

Step 4 is remembering that people buy homes, not houses, and this means they want to establish an emotional attachment. While step 2 set the stage for your potential buyers to begin to see themselves in your home, step 4 is helping buyers see themselves in your neighborhood and community via social media. What is the school system like? What restaurants, grocery stores and shopping malls are nearby? The Chicago Tribune article entitled Quirky Twitter account helps sell Mount Prospect house tells a story about one man’s innovative marketing idea using Twitter. Your real estate agent may already be leveraging social media, as the article recommends. Contact us to find out more about selling your home.

Paying home owner association (HOA) fees in addition to a mortgage and property taxes may, at first, seem less than desirable. You may be even wary of HOA because you have heard they can be restrictive, determining the colors you are allowed to paint your home, the condition of your lawn, etc. The benefits of having an HOA, however, can be considered an investment.

Property Value

HOA’s may seem to restrict your creativity or personal style, not allowing you to paint your home bright pink and orange. But what appeals to one person may not appeal to another. By having guidelines and rules all residents in your neighborhood must abide by, what the HOA is really doing is ensuring your property value doesn’t decrease because of unappealing overgrown yards or piles of trash in your next door neighbor’s yard. HOA’s put certain rules in place to safeguard your property value.

Amenities

With newer communities, it is becoming more common to have shared amenities such as pools, parks, and sport fields. HOA fees go toward the upkeep and maintenance of these facilities. Not only does this help increase the property value, but also saves the residents time and money by giving them the opportunity to enjoy such amenities within walking distance.

With all the foreclosures over the past few years and the price appreciation that followed, investors have been snapping up real estate deals left and right. The resulting effect, the median sale price of single family homes and condos reached their highest point since 2008. But if you are looking for a new home, don’t worry, experts predict the 2015 market will see a return to normalcy.

Home value growth has recently reached 6%, but experts from Zillow.com believe that in 2015 home value growth will be cut in half, to 3%. This drop will make real estate opportunities less attractive to investors, and in turn, lead to more available homes on the market. In addition to paying a lower cost, buyers will also not feel as rushed or be as willing to compromise when purchasing a home. The “this house is almost perfect so, I better get it before someone else does,” mentality will give way to allowing buyers to really take the time to find their actual perfect home.

However, there are still two groups predicted to possibly make a jump on the American housing market. One is overseas buyers. With some countries still in economic turmoil, foreign investors may be looking to the U.S. to invest in properties.

The other group looking to find the perfect home to settle into, the millennials. The millennials have been putting off buying in favor of renting. But experts say as Generation Yers are beginning to start families and looking for a stable and secure place to call home they are motivated to forgo renting and start buying.

But even with two potentially large buying groups, the Baby Boomers may offset some of that demand. With Baby Boomers downsizing, moving into retirement communities or wanting to be closer to their kids and grandchildren, more homes will be readily available on the market. Additionally, some experts are predicting a large increase in new home building and sales, as much as an 18-20 percent increase.

Move-Up America is celebrating 20 years! Established in 1995 by John and Jay Horton and Clay Woodard Move-Up America has served over 8,500 satisfied customers and saved over $45,000,000 in commissions in 12 different markets and 9 different states. Move-Up America has prided itself on providing excellent customer service and maintaining a level of professionalism in order to ensure that their clients get their dream home for the absolute best price.

When established in 1995, Move-Up America brought a radical, new idea to the real estate business. Move-Up America began working directly with home builders and the very best agents from the nation’s top brokerage firms to help clients sell their home and purchase a new home with ease while saving customers on average $9,000 in the process.

During Move-Up America’s celebration they have decided to give the gifts to their customers and sales counselors alike. For its customers Move-Up America has published a free eBook, Selling Your First Home, which details all the vital information that is needed when selling and buying a home simultaneously along with handy printable checklists. This free ebook may be downloaded here.

To show appreciation to the many wonderful sales counselors that have been an integral part of Move-Up America’s success over the last 20 years, Move-Up America is footing the cost for online advertisements. Move-Up America has spent an extensive amount of time researching how to make the most effective ads for themselves and understanding how to specifically target relevant audiences through online demographic research.

Move-Up America would now like to share that knowledge with its sales counselors by placing digital ads that can specifically target potential homebuyers living within a 10 mile radius of the sales counselors’ neighborhood. These ads will allow counselors to advertise the attributes and highlights of the neighborhoods where they are selling to a highly targeted audience. For more information on online marketing with Move-Up America please contact, John Horton here.