Archive for December 2020

Pandemic Renovation Trends

In the first days of the COVID-19 pandemic, economists predicted that the market for goods and services would grind to a halt for months or even years to come. However, in reality, the real estate market, including both the selling of homes and the improvement of existing properties, has grown in strength over the intervening months. Even for homeowners who aren’t thinking about selling, home renovation projects are experiencing unprecedented interest and generating robust economic activity.

Why is the pandemic driving home renovation?

From learning to make homemade baguettes to planting elaborate gardens, homeowners have responded to the pandemic in a variety of interesting ways. Why is home renovation one of the most popular responses to this time of uncertainty?

More time at home

One of the main reasons that home renovation is on the rise is the simple fact that people are becoming more aware day by day of the things that drive them crazy about their homes. In the first weeks, it was all about the squeaky door or the broken hinge. But with fewer outside distractions, and months of 24/7 time in the home with no end in sight, homeowners are finding that they just have to take care of some of their residential pet peeves.

Work from home and virtual classrooms

In terms of logistics, a home that normally accommodates a family for only a few hours each day has become a round-the-clock workplace, schoolroom, plus entertainment and recreation venue. That puts a lot of added pressure on the space to perform.

For dual-career couples, the need for two offices suitable for conference calls and Zoom meetings with appropriate levels of storage, comfort, and privacy is reason enough for a home renovation. Add in the need for a virtual classroom for the kids and you may be looking at either an addition, an ADU (accessory dwelling unit), or a major space reconfiguration.

More space-use versatility

In smaller homes, there’s a need for spaces to perform double-duty, with added flexibility and the ability to make a room work for the family’s changing needs. While wide-open floorplans have been popular for many households, families need spaces that can also accommodate the need for privacy, focus, and increased daily use. In addition, outdoor and bonus spaces are being put to work in order to expand the possibilities for each member of the family.

Top home renovation trends for 2020

When the COVID-19 pandemic first began, taking a call on the front lawn made for a fun change of pace. Now, however, people are beginning to settle in for the long haul and make changes to make their homes more functional for the new normal. Here are some of the trends that we’re seeing now—and that may be popular for the foreseeable future.

Healthier homes

According to the New York Times, designers and contractors are seeing demand for better ventilation and air quality, along with features like mudrooms to create a middle ground between the outside world and the home’s interior. These spaces are also convenient given the increasing popularity of home delivery of goods and services, providing a place to process packages while keeping the home cleaner.

Smarter homes

With more time at home comes the desire for smarter homes to facilitate everything from greener living to added amenities. Smart home integration in the kitchen is popular with newly motivated bakers looking to perfect their bread recipe, as well as harried parents doling out a quick snack during virtual preschool breaks. Proper installation and a fully integrated suite of services can add value to the home, both now and in the future when it’s time to sell.

Security and privacy

According to Contractor magazine, the demand for smart-home integrated security and monitoring was already on pace for 27 percent growth between 2017–2021. In addition, according to referral rate data supplied by Houzz, interest in fence installation and repair is up 166 percent. The increasing demand for security upgrades is motivated by a variety of factors, including more time at home and a greater need to supervise children while working.

Expanded outdoor spaces

According to CNBC, outdoor space renovations are up by 300 percent year over year as homeowners look for more living, dining, entertaining, and recreational space in their own backyards. Pool demand is on the rise as community and school sports continue to decline. New decks and new landscaping designs are popular, creating a variety of outdoor spaces for families to stay active and staycation.

Dual home offices

The need for dual home offices is one of the largest drivers of home renovation right now, with Houzz seeing requests for home extensions and additions up 52 percent year over year. On top of that, homeowners are looking for ways to accommodate increased high-speed internet access and implement soundproofing to make offices more private.

Space for another home office can come from a variety of places, including small bump-outs within a larger space, spare bedrooms, or even repurposing a walk-in closet. In addition, some homeowners are going further afield, converting small outbuildings or garage apartments into private spaces. Think about your home’s traffic patterns and look for those empty spaces that never get used. These may be likely candidates for a new home office.

As always, discuss home renovations with a real estate agent to find out what is popular in your area and what improvements have the potential to make your home more attractive to buyers down the road. In addition, a real estate agent or broker knows all of the best professionals in your area, from contractors to help you plan your renovation to lenders who’ll help you tap into your home’s equity to finance the work.

Filed under: Blog, Brooklyn, Buying, Real Estate, Selling, Smart Home by Ryan Roberts
Comments Off on Pandemic Renovation Trends

Preparing For A 2021 Home Purchase

While you may have been ready to buy a home during the 2020 spring market, the uncertainties caused by the pandemic may have put a damper on your plans. At this point, you may be uncertain about your post COVID 19 real estate goals and unsure whether the opportunity to work from home will inspire you to move to another market or another type of home.

If you’re looking to get ready for a home purchase down the road, this plan will help ensure you’ve covered all your bases. From finance to logistics, it’s important to think through the changes on the horizon to streamline your 2021 home purchase.

Preparing to finance your purchase

One of the first things you’ll want to think about is the financing for your home purchase. Talk to a real estate professional and ask for an introduction to a mortgage lender, if you don’t already have one in mind.

Talk to your lender about the pre-approval process. When it’s time to begin seriously looking for your new home, you will want to have a pre-approval in place so that you can show sellers that you are serious about any offer you may make and that you are approved for a home mortgage.

In the meantime, you’ll want to check your credit score and your credit report to ensure that there are no mistakes. If your score is less than optimal, explore strategies for raising it in the months ahead. These can include:

Paying bills on time
Having rent and utility payments added to your credit report
Paying down debt and avoiding accruing new debt

In addition, talk to your lender about the types of home mortgage products you qualify for—VA, FHA, and conventional, among others—and the credit score range you’ll need so that you can be approved for each.

Determining your price range

By working with your lender you’ll be able to come up with a ballpark price range for your home search. This will be important as it will help you to narrow down the neighborhoods, home types, and home sizes you should be considering.

Remember, just because you qualify for a certain amount, you don’t have to shop at the top of your budget. Consider your lifestyle, other debt, future plans, and disposable income needs when determining your home purchasing power.

Comparing potential markets for your search

This is a good time to begin looking at markets where you might be inclined to move. Talk to your real estate agent to find out what features you’ll find in the areas you’re considering. Determine what you are looking for so that you can narrow down your search. Do you care more about:

Recreational opportunities?
Children’s programming?
Dining and nightlife?
Convenient shopping and services?
Commute times?
Larger lot sizes?
Larger homes?
Resale potential?

If possible, spend some time in your potential neighborhoods. Shop at the stores, eat in a local restaurant, and visit a nearby attraction. Check out the people to see if they seem like good future neighbors for you and your family.

Comparing potential home styles and features

Spend some time looking over listings to determine what home styles and features are most important to you. Put together a wish list and prioritize with must-have, nice-to-have, and optional items. Determine how different updates, upgrades, and other features impact price. Consider what you might be willing to add or change after the purchase and what you’ll want to have completed before you move in.

Preparing for associated expenses

Buying a home brings with it a large number of expenses before, during, and after the purchase process. It’s important for you to have an idea of these ahead of time so you can ensure that your savings are adequate. Remember, you won’t be able to run up additional debt while your mortgage is in underwriting, so it’s important to have a budget in mind before you begin.

Expenses for your home purchase may include any or all of the following:

Earnest Money Deposit (EMD): 1–5% of the purchase price
Down Payment: Generally 3–20% of the purchase price
Closing Costs: Variable (discuss with a real estate professional or lender)
Moving Costs: Variable
New furniture and design elements
Needed repairs and improvements

Planning for your upcoming move

Once you’ve determined where you’re moving and the type of home you’ll move into, you’ll need to begin planning for the move itself. If you’re in a rental home, check with your landlord to determine how much notice you’ll need to give before ending your lease as well as what information needs to be included in that notice. You’ll also want to check on month-to-month rental options, in case you are not ready to close at the end of your current lease.

You’ll want to save up money for your upcoming move but the budget can vary widely depending on the services you require. While you may be able to manage a do-it-yourself move for only the cost of a rental truck, a professional move can cost thousands of dollars. This price can be further increased depending on the distance of the move as well as services like packing and unpacking.

If you’re moving with children, you’ll want to spend some time preparing them for the emotional impact. If possible, take them to visit their new neighborhood, play in the park, or spend a day with classmates at their new school. The more you can do to communicate and demystify the process, the more comfortable (and excited) the youngest members of your family will be on moving day.

Filed under: Blog, Buying, Finance, Investing, Mortgage, Real Estate, Selling by Ryan Roberts
Comments Off on Preparing For A 2021 Home Purchase