Need a great place to work out? What about your own apartment community?
A bustling city full of walkable blocks and busy suburbs, Chicago puts many essentials right at your fingertips. However, of those who add an outside gym membership to their list of bills, 67.7 percent go completely unused.
Stop spending more to not work out and make it easier on yourself. These apartment communities feature some of the best gyms in Chicago. Even better, you don’t even have to leave home (or pay extra) to use them.
Get your workout routine back on track with these 10 local spots that come complete with a gym.
Source: Rent. / Sentral Michigan Avenue
Wall-to-wall windows and an industrial feel give the fitness center at Sentral Michigan Avenue a sleek look. Take in the Downtown Chicago views as you use the rowing, elliptical and step machines to get your cardio on. There’s also a yoga studio and outdoor hydrotherapy spa, perfect to soothe sore muscles.
Located in The Loop, Chicago’s central business district, this community is full of high-rise buildings. This upward space provides opportunities for some creative design, including Sentral Michigan Avenue’s four-story indoor garden.
Source: Rent. / Solstice on the Park
A walkable and peaceful community, apartments in East Hyde Park give off a lighter vibe. Solstice on the Park is a perfect example with its pet spa, self-service car wash and EV charging stations.
The fitness center soothes with mirrored walls, large windows and inset lighting. The space feels bright and airy, creating an approachable environment to get working with the gym’s free weights, Peloton bikes and strength and cardio machines.
There’s also a sectioned-off workout studio perfect for some yoga or simply for stretching.
Source: Rent. / Residences at New City
Taking advantage of all the big windows, the machines in the fitness room at the Residences at New City follow the curve of the wall. This bright and industrial space makes it easy to work out, whether you’re using one of the many machines or taking advantage of the studio space.
Coupled with the cyber cafe, dog run, theatre room with a 90-inch screen and more, you’ll find quite an amenity package in this Near North Side community. The area, just north of Downtown, is also bordered by Michigan Avenue, Chicago’s most famous street.
Source: Rent. / Prairie Shores Apartments
Accented with orange pillars and plenty of windows and mirrors is the quaint workout space at Prairie Shores Apartments. It features a selection of cardio equipment and weight machines perfect for any “home gym.”
Located on the south side of Chicago in Prairie Shores, this community sits on 20 acres of green space alongside Lake Michigan. You’ll also find a pool, clubhouse, dog park and media center among its amenities.
Source: Rent. / Alta at K Station
Composed of two stylish and eco-friendly towers, Alta at K Station is a LEED Gold building. Inside you’ll find a cyber cafe, indoor sports court, movie theater and rooftop pool, jacuzzi, sauna and steam room.
When it comes to the gym of this West Side gem, you’ll find every type of weight machine and fitness equipment imaginable. There’s also a secondary space with rows of cardio machines which all face out toward the tall windows.
A modern and simple decor, Alta at K Station also provides residents with complimentary fitness classes.
Source: Rent. / The Marquee at Block 37
Another cool spot in The Loop, The Marquee at Block 37 has a spacious gym with industrial design accents. Located at the top of the building for optimal views, the fitness center offers access to a nice assortment of cardio and weight machines along with free weights. A wall-length mirror gives the room depth. Complimentary fitness classes provide even more reasons to use the gym.
A LEED-certified building, The Marquee at Block 37 also features a cinema lounge, dog run and wash station, steam room and sauna and sundeck with cabanas and swimming pool.
Source: Rent. / Lofts at River East
Another Near North Side apartment community with a massive workout space is the Lofts at River East. The gym here has an industrial feel, with exposed piping and brickwork. Rows of elliptical machines are set against the windows. You’ll also find CrossFit boxes, weight equipment and punching bags. To top off the decor, there’s inspiring wall art.
Other amenities that cement the luxurious living at Lofts at River East include a bike room with a repair shop, a dog wash station, a game room and a screening room.
Source: Rent. / Del Prado
Fashionable and funky, with plenty of color and artistic flair, the fitness center at Del Prado is just one of the shared spaces in this East Hyde Park apartment community. You’ll also find a variety of study areas and lounges, and even an on-site restaurant.
The gym itself has its own style. Pops of color and mirrored columns are set among the cardio and strength equipment. You’ll also find a nice CrossFit space.
Source: Rent. / Coast at Lakeshore East
With a massive fitness center that’s bright and full of character, the gym at Coast at Lakeshore East is fully equipped. CYBEX machines of every variety are available along with custom free weights.
This Near East Side apartment community sits on the shores of Lake Michigan. It’s a smoke-free residence that includes an outdoor heated lap pool and indoor spa.
There’s also a neighborhood courtesy shuttle, sauna and steam rooms and tech center.
Source: Rent. / The Residences at Addison and Clark
Situated next door to the infamous home of the Chicago Cubs, The Residences at Addison and Clark provide views of Wrigley Field from its rooftop patio. The fitness center is spacious and sleek with a Peloton cycle room, CrossFit boxes and plenty of cardio and strength equipment.
This LEED-certified building in Wrigleyville is close to amazing restaurants and shopping. The area is quieter by day, but when there’s a home game, watch out if you’re not a sports fan. The fandom is contagious.
Grab an apartment workout at one of the best gyms in Chicago
Whether moving to Chicago for work, school or to be able to call such an exciting city home, you’ll want easy access to exercise. As a walking city, you’re already ahead of the game, but round out your routine with an excellent community gym.
Look for Chicago apartments like these that boast an assortment of amenities, including a fitness center, and you’ll come out a winner.
Featured image source: Rent. / Lofts at River East
After years of speculation and debates, President Biden finally announced that he’d be fulfilling a campaign promise to cancel some student debt.
The plan could bring relief to over 43 million borrowers with an average $30,000 debt outstanding.
So, do you qualify for Biden’s student loan forgiveness plan? How much of your debt will be forgiven? How will it affect your monthly payments, and what relief is there for future borrowers?
Here’s everything you need to know about Biden’s student loan forgiveness plan!
What’s Ahead:
Biden’s student loan forgiveness plan
On Aug. 24, President Biden announced that the federal government would forgive $10,000 in student loan debt for qualified borrowers making under $125,000 as a single filer or $250,000 as a household.
If you received a Pell Grant, you could qualify for an extra $10,000 in forgiveness.
Biden also proposed a new income-driven repayment (IDR) plan that would lower payments on undergraduate loans from 10% or 15% of your monthly discretionary income to just 5%.
Overall, the Biden administration estimates the new plan will provide relief for up to 43 million borrowers. Here’s the full White House Fact Sheet.
December 2022 update
Now, if you were looking forward to having up to $20,000 of your student loans forgiven, you might feel deflated by some recent, grim-sounding headlines.
Headlines featuring words like “Lawsuit,” “Challenged,” and “Frozen.”
I was actually speaking to a group of college students about financial wellness right as the program was blocked. I was explaining how the program was in legal jeopardy, and that anyone interested should apply ASAP when a student politely raised his hand and said:
“Uh… the site is down right now.”
TL;DR: What happened?
The program is facing two high-profile lawsuits: one from six Republican-led states, and one from a pair of borrowers who didn’t qualify for full relief. As a result, student loan relief can’t proceed until both suits play out in court sometime next year.
In other words, it’s in limbo and nobody has received relief yet.
Who’s trying to block student loan forgiveness, and why?
Well, as you might recall, not everyone was happy to hear about Biden’s program. Some called it a Band-Aid on a bigger problem, and others said it was straight up unlawful.
But most of the students I spoke with didn’t care too much for the overarching politics. I’ll just take my $10k, thanks. They were among the 26 million who applied for relief before the site went down, 16 million of which had already been approved by the Biden administration.
Unfortunately, before the $400 billion relief train could arrive at the station, a federal judge based in Texas yanked on the brakes. U.S. District Judge Mark Pittman struck the program down on Nov. 10, barring its implementation and forcing an indefinite hold on new applications.
Judge Pittman was acting on behalf of a lawsuit filed by conservative interest group the Job Creators Network Foundation, which itself wrote up the suit based on complaints filed by two borrowers. One didn’t qualify for relief because her loans were privately held, and the other complained he was only eligible for $10,000 because he wasn’t a Pell Grant recipient.
The lawsuit alleges that the program unlawfully skipped right over the step where citizens provide feedback on proposed federal programs — a rule made sacred by the Administrative Procedure Act.
“This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government,” said Elaine Parker, president of Job Creators Network Foundation.
“The program is thus an unconstitutional exercise of Congress’s legislative power and must be vacated,” wrote Judge Pittman.
So that’s big lawsuit/roadblock no. 1.
Big lawsuit/roadblock no. 2 comes from six whole states. GOP-led Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina collectively filed a lawsuit challenging Biden’s authority to cancel student debt. Technically their complaint preceded Judge Pittman’s, but wasn’t granted a preliminary injunction (read: taken super seriously) until Nov. 14.
Though both lawsuits have the same throughline — that this is an overreach of executive power — the Republican-led states also add that this high amount of debt relief could negatively impact tax revenue.
This echoes several earlier lawsuits that were eventually thrown out. One came from a Wisconsin taxpayers group alleging that this would dip too far into the U.S. Treasury. Another came from Arizona Attorney General Mark Brnovich, who asserted that the plan would hurt recruitment of public sector employees by erasing incentives provided by Public Service Loan Forgiveness.
In short, a lotta folks are trying to block Biden’s student loan forgiveness program. And while most lawsuits have fizzled out in the lower courts, the two big suits described above made it through the gauntlet and pose a real threat to the program’s survival.
So what happens now?
Well, it could take weeks or months for these two big lawsuits to play out in court. And until then, the 8th U.S. Circuit Court of Appeals has blocked the Biden Administration from providing a penny of debt relief — or even taking new applications.
That said, the program isn’t canceled; it’s just on pause until litigation gets resolved. It’s entirely possible that these suits will fizzle out just like the others, and that you’ll get your $10k or $20k by mid-2023.
It’s also possible that these efforts will succeed and student loan forgiveness will be blocked indefinitely. Or that the lawsuits will be drawn out until 2024.
Point being, hope for the best and plan for the worst.
What about repayment extensions?
If there’s a silver lining for borrowers, it’s that the program’s legal challenges gave Biden the opening to further extend the pause on repayments.
On Nov. 28, he announced that federal student loan payments would be paused until 60 days after the lawsuits are resolved. They were previously scheduled to resume on Jan. 1.
As a borrower, what steps should you take as you wait?
Here are four steps every borrower can take as you wait for all this to be resolved:
Read the rest of this guide — As of now, the terms of the original plan are exactly the same. So be sure to educate yourself on whether or not you qualify and for how much.
Subscribe to updates — The U.S. Department of Education has two newsletters I’d recommend: Federal Student Loan Borrower Updates and Top News from the Department. They’re the top two on this list.
Don’t plan on receiving relief — There’s nothing wrong with crossing your fingers, but don’t plan your 2023 budget around debt relief since it isn’t guaranteed.
Shrink your debt in other ways — Check out our guide on how to manage student loan debt for ways to manage your debt and pay it off faster.
Who exactly qualifies?
Here are the qualifications for receiving $10,000 in student loan forgiveness:
You’re a single filer with an adjusted gross income of under $125,000 on either your 2020 or 2021 tax returns. For joint filers or heads of household, that number rises to $250,000.
You took out a federal student loan, including PLUS loans. Loans taken out by you or your parents on your behalf both qualify.
You took out your loan prior to June 30, 2022.
If you meet the above requirements and you received a Pell Grant, you may qualify for an additional $10,000 in relief for a total of $20,000.
Which loan types qualify?
Most types of federal student loan debt qualify. That includes:
Direct loans (subsidized and unsubsidized)
Direct PLUS loans, including Grad Plus and Parent Plus loans
Direct consolidation loans
Some (but not all) Federal Family Education Loans
The trick with Federal Family Education Loans (FFEL) is that some are held by private companies. If your FFEL qualified for the payment pause in 2020, it may qualify for forgiveness. If it didn’t qualify for the payment pause, that’s a sign that it’s privately held and won’t immediately qualify for the $10,000.
That being said, there’s still hope. The Washington Post reports that the Biden Administration is working with private FFEL lenders to see if they can fold their borrowers into the relief program.
Will I get the full amount? Or is there a sliding scale?
If you meet the above qualifications, you will get the full $10,000 in forgiveness ($20,000 for a Pell Grant).
There is no sliding scale based on income, or anything like that.
What steps do I have to take? Or is it automatic?
It depends.
If the Department of Education already has your income information from 2020 and/or 2021, you’ll automatically qualify. According to the Biden administration, they already have income information from 8 million out of 43 million qualified relief candidates.
If you qualify but you’re not sure if the DoE has your income information, you’ll soon be able to fill out a form that certifies your qualification.
The form is scheduled to release sometime between now and when the repayment freeze expires. You can subscribe here for Department of Education updates — be sure to check the first box for Federal Student Loan Borrower Updates.
You’ll also want to double-check that your loan servicer has your latest contact and address information. If you’re not sure who your loan servicer is, check here on the DoE’s official page.
How will student loan forgiveness affect my remaining monthly payments?
It kind of depends on how your loan servicer wants to interpret the loan forgiveness program. At the time of this writing, we’re not sure if the bulk of them will choose to:
Lower the amount you have to pay each month, or
Keep your monthly payments the same and shorten your term.
They may end up letting borrowers choose, but again, who knows? The New York Times asked Scott Buchanan, executive director of Student Loan Servicing Alliance, what borrowers should expect. His response was basically:
“¯_(ツ)_/¯ “
We do know that if you’re on an income-driven repayment (IDR) plan, any amount of forgiveness you receive probably won’t shrink your monthly payments since your payments are income-based, not balance-based.
That being said, Biden has big changes in store for IDR plans, too.
What about the updates to the income-driven repayment (IDR) plan?
If you’re on an IDR plan like PAYE, REPAYE, ICR, etc., you’re probably used to paying 10%, 15%, or even 20% of your discretionary monthly income towards your student loan balance.
While capping your required payments is helpful, even 10% can be pretty steep for low-income borrowers struggling to make ends meet as the cost of living rises.
Read more: How little can you live on in 2022?
That’s why the Biden administration has proposed a new rule that would cap monthly payments at 5% of your monthly discretionary income versus 10% or higher. The new rule would also raise the amount considered “non-discretionary” and forgive balances after 10 years of payments instead of 20.
The rule is expected to take effect in summer 2023.
Will I have to pay taxes on my student loan forgiveness?
Nope! Congress eliminated taxes on loan forgiveness through 2025.
Will the student loan repayment freeze be extended (again)?
Yep!
The student loan repayment freeze that began in 2020 was originally slated to expire on Aug. 31, 2022, then bumped to Dec. 31, 2022, has now been extended again pending the lawsuits.
Payments are paused until 60 days after the lawsuits are resolved. If that hasn’t happened by June 30, 2023, payments will resume on Sept. 1, 2023.
Should I hold off on refinancing until forgiveness kicks in?
Oh, most definitely.
Generally speaking, refinancing your federal student loans with a private lender only makes sense when you qualify for a much lower interest rate than you’re currently paying, as is often the case when your credit score rises.
But private loans often lack some or all of the protections of federal loans, such as payment freezes and income-driven repayment plans. That’s why refinancing federal student loans with a private lender should be a careful, calculated decision.
Check out our full guide on student loan refinance options for more info.
And even if you qualify for a lower interest rate — say, 3% versus 7% — that’s not enough to offset $10,000 in instant forgiveness. Wait for the Department of Education to knock $10k off your principal, and then reassess your options.
I paid off my loans during the freeze. Is there any kind of relief for me?
Actually, yes!
If you:
Meet the qualifications for loan forgiveness, and
Made student loan payments after March 13, 2020,
you’re actually eligible for a refund! The Department of Education advises that you contact your loan servicer to request your refund and get the ball rolling.
I haven’t applied for student loans yet. Is there any relief for future borrowers?
There’s no direct monetary relief for borrowers who took out loans after June 30, 2022, or plan to in the future. That means if you borrow $50,000 this fall, you won’t automatically get a $10,000 discount on your principal.
That being said, the Biden administration claims that three new policy adjustments can improve the outlook for future borrowers:
Setting an income-driven repayment plan at 5% instead of the standard 10% to cut required monthly payments in half
Fixing the “broken” Public Service Loan Forgiveness program to broaden who qualifies for forgiveness, and overall streamline a complex and messy system
“Holding schools accountable when they hike up prices,” thereby strengthening overall accountability “to ensure student borrowers get value for their college costs”
For more on how to make college more affordable, check out:
The bottom line
If Biden’s plan means you’re suddenly debt-free, you might start having a little extra capital at the end of the month to invest.
So where should you put it?
Well, you’re definitely in the right place to find out! Check out:
Today we’ll check out “Loan Cabin,” yet another online mortgage lender that has turned to technology to streamline the home loan process and lower costs for its customers.
It’s seems to be a common theme these days, and if it results in more consumer choice and a cheaper mortgage, I’m all for it.
After all, few people want to visit a branch, fill out paperwork by hand, or do things the old-fashioned way, at least when it comes to a mortgage.
Loan Cabin says it can provide a quick, simple, and transparent home loan using tech. And instead of it taking 45 days or longer, they aim to close in as few as 21 days.
Loan Cabin Fast Facts
A direct-to-consumer mortgage lender
Offers home purchase financing and mortgage refinances
Founded in 2015, headquartered in Lombard, Illinois (Chicago)
Currently licensed to do business in 16 states nationwide
Aim to close loans in 21-30 days using leading edge technology
Loan Cabin is a direct mortgage lender based in Lombard, Illinois, which is a suburb of Chicago.
They are a relatively young company, having been formed in 2015. But their pitch is that of a modern lender, not a stale old bank that uses outdated processes and clunky technology.
Instead, they say they’re able to provide aggressive quoted rates in just minutes, and an initial pre-approval in 20 minutes or less, with a 100% online application process available.
The company is currently licensed in 16 states nationwide, including:
Alabama, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio, Pennsylvania, Mississippi, Tennessee, Texas, and Washington.
They say they’re working to expand throughout the country.
How to Apply for a Mortgage with Loan Cabin
Visit their website and click “Get Started” to apply immediately
They offer a digital mortgage application powered by ICE
Allows you to complete most loan tasks electronically from the device of your choosing
Loans are underwritten, processed, and closed in-house using their own funds
Loan Cabin makes it easy to apply for a home loan. Simply cruise over to their website, click on “Get Started” and you’ll be in their digital mortgage application powered by ICE technology.
But before you do that, you can see their daily mortgage rates online to ensure they have competitive pricing relative to other lenders.
However you approach it, they make it simple thanks to the latest technology, which allows you to complete most tasks electronically, whether it’s uploading documents or eSigning disclosures.
Once you complete the application, a loan officer will get in touch to discuss pricing and tie any loose ends before loan submission (or provide you with a pre-approval).
Assuming you like what you hear, you can go ahead and lock your loan, order the appraisal, and wait for an underwriter to issue you a conditional approval.
All in all, they aim to close loans in three weeks as opposed to 45 days or longer, which tends to be the industry average.
They’re able to move quickly because they’re a direct mortgage lender, meaning everything is completed in-house and they uses their own funds to close loans.
Mortgage Programs Offered by Loan Cabin
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie/Freddie
Jumbo loans
FHA loans
VA loans
Fixed-rate mortgages: 15, 20, and 30-year terms
Adjustable-rate mortgages: 5/1 and 7/1 ARMs
Loan Cabin offers most of the major home loan programs you’d expect from a mortgage lender, other than perhaps USDA loans.
You can get both a home purchase loan or a mortgage refinance, including a rate and term refinance or a cash out refinance.
In terms of qualifying property types, they finance single-family homes, 1-4 unit multi-family properties, townhouses, condos, and PUDs. The only real exception is co-ops.
And you can get a mortgage on a primary residence, second home, or an investment property.
With regard to loan type, they offer conforming loans backed by Fannie Mae and Freddie Mac, FHA loans, VA loans, and jumbo home loans.
It’s possible to get a fixed-rate mortgage in a 15-, 20-, or 30-year term, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.
Ultimately, they should have a loan program to fit most borrowers out there, whether you’re a first-time home buyer or existing homeowner.
Loan Cabin Mortgage Rates
One positive to Loan Cabin is the fact that they publicize their mortgage rates online for all to see.
So before you jump into an application, you can see where they stand pricing-wise. From what I saw, they appeared to be pretty low on all their fixed-rate offerings.
To see for yourself, simply navigate over to the “View Rates” tab on their website and you’ll be able to check out daily rates for a variety of loan programs.
You can even enter in your own loan scenario to explore different options, or to simply obtain a more customized rate.
This level of transparency is always a plus and tells us they’re going to do their best to be competitive in the pricing department versus the lenders that don’t even mention rates.
That being said, they don’t list their lender fees online, other than saying you can request a mortgage without lender fees.
While it’s nice to have that option, it’d also be helpful to know upfront if they charge a loan origination fee or any other fees.
Loan Cabin simply says it does not charge any application fees or so-called junk fees.
Loan Cabin Reviews
On Zillow, the company has a 4.84-star rating out of 5 from nearly 200 customer reviews, which is a very solid score.
A good number of those reviews indicate that the interest rate and closing costs were lower than expected as well.
Over at Bankrate, they have a similar 4.8-star rating from about 50 reviews, with most of them perfect 5-star reviews and 95% of customers saying they would recommend them.
Lastly, they’ve got a 4.4-star rating out of 5 on Google from just over 50 reviews, which while not as strong, is still quite positive.
In summary, Loan Cabin appears to be well-liked and big on technology, which aside from being convenient could also save you money if they pass the savings along as they say.
Because they are an online mortgage lender, they could be well-suited for an existing homeowner looking to save money via a refinance, or even a home buyer who is confident to do most things remotely.
Loan Cabin Pros and Cons
The Good
Can apply directly from their website on any device without a human
Offer a fully-digital mortgage application powered by ICE technology
They post their daily mortgage rates online
Plenty of home loan programs to choose from
Excellent customer reviews across all ratings websites
Lots of helpful mortgage tutorials on their website
They process, underwrite, and fund loans in-house
The Not So Much
Not licensed in all states
No brick-and-mortar locations
Do not offer USDA loans, second mortgages, or HELOCs
No mention of lender fees
Will transfer your mortgage to a loan servicer shortly after closing
I was tired of fighting with mortgage lenders about self-employment income, high-interest rates, and dealing with scarce inventory that fit our family’s needs. We decided to rent a bigger home. I was beyond done. It wasn’t meant to be. The awards for entrepreneurship did not extend to quickly buying a home.
My wife found a home with motivated owners due to a divorce. They had only lived there nine months and needed to make a move. The best way to say it is that the price point didn’t accommodate the rising interest rate environment, and they were open to many options.
I discussed rent-to-own options, and finally, she said the magic words: “They would even make an assumption – they don’t need to make money on the deal.”
My father had been diagnosed with stage four liver failure at that time, and we were aggressively looking for a home so he could move in with my family. He had been working full-time, despite the immense pain and turmoil he experienced daily.
To overcome the disparity in my income, my father agreed to be our co-borrower on the mortgage assumption application. This was ideal because he was also moving in with us.
I quickly applied with our names, and our combined income was approved. We agreed on a final sale price and were off to the races.
I have been in the mortgage industry for nine years, with my loan officer in the industry for 19 years and my Realtor for over 10 years. While all parties knew this option existed, none of us had ever participated in a real mortgage assumption transaction. I had written a dozen or so mortgage assumption content pieces for various mortgage lenders and realtors, but have never seen a single deal shake out.
Everyone was in for a new experience, and here are the things we learned almost immediately.
Assuming a VA loan
I have nothing but the utmost respect for everyone serving in the military. I have several family members on active duty; this is a sacrifice, and veterans deserve every benefit possible.
Veterans Affairs (VA) mortgage loans can be an excellent product for veterans. VA loans can be assumed by anyone, and the new borrower assumes those benefits. You do not have to be a veteran to assume a VA loan.
I am not a veteran, but I did assume a VA mortgage.
Minimum timeline of 12 months
The sellers had only lived in the home for nine months. To make a mortgage assumption, you must live in the home for 12 months. To move my father in, we opted to rent the house for the remainder of the three months. Ideally, these types of loans can close in 30-45 days from application.
Assume everything
You assume everything about the loan. The focus, of course, will be the mortgage rate, which is almost half what the current market mortgage rates are today. In addition, I received the existing escrow account as well.
However, for some reason, you must pay property insurance up front for a year. Still, these small concessions and fees pale compared to what we’d have to pay if we bought a home traditionally in this high-rate environment.
The price difference
Homeowners at certain price points may need help to sell their homes in this high-rate environment. In our case, we agreed to pay the list price and the difference between the remaining loan and the list price. They had only been there nine months, and the price they bought was the same as the price they listed. So, we didn’t have much to cover.
We paid nothing down and very few fees. Hypothetically, if a homeowner lives in a home for several years, this would be an incredible option for a borrower to cover the difference and receive a mortgage rate that is potentially almost half of the current market rate.
My father grew extremely ill in the weeks leading up to moving in and passed away seven days before we took occupancy. I had to reconfigure my taxes to show income qualifying for the mortgage payment we would soon take over. If my father hadn’t stepped up, we wouldn’t have had a chance to secure the deal of a lifetime.
Three months later, at the closing table, clasping a picture of my father, I went through a traditional mortgage loan closing. The 20+ mortgage title professional had never closed a mortgage assumption in his entire career.
Were we lucky? Maybe a little bit. It was a culmination of luck, mortgage knowledge, and timing.
When going through my father’s stuff after he passed, we found a New Year’s letter from one of those television evangelists he had subscribed to. The letter spewed about affirmations and claiming victories in your life. On that piece of paper, my father wrote down our new address. So maybe it was that.
We live in a weird market. The demand to buy a home has remained strong. As mortgage and real estate professionals, we must continuously educate and inform our clients about every opportunity that may exist.
Mortgage assumptions seem to be the Bigfoot of our industry, but they exist and are a viable option for thousands of home sellers and borrowers. I would recommend checking the option out.
This column does not necessarily reflect the opinion of HousingWire and its owners.
To contact the author of this story: Steven Cooley at ArtVsMath.com To contact the editor responsible for this story: Sarah Wheeler at [email protected]
If you feel like you fly the friendly skies more often than you sleep in your own apartment, then knowing the most convenient cities for a jet-setting frequent flyer is a must.
Find your perfect apartment now!
When the name of the game is making confident connections, finding a decent airport meal and amusing yourself during a delay, this list of best airport cities will help your trips fly by.
You might want to plant your apartment homebase in one of these cities with high-flying airport service.
Quick connections (the tablet/laptop version) These days, quick connections mean a lot more than catching your next flight. In our digital world, we’re working all the time. Finding power outlets, Wi-Fi and quick download times is key. The frontrunner in this category is the Charlotte Douglas International Airport in Charlotte, NC. Charlotte is the domestic hub for US Airways, and, according to Online MBA, a great airport for business travelers because it offers some of the fastest free Wi-Fi Internet connections around (an average of 12 megabits per second, for the technically-inclined).
North Carolina must have some serious service, as well, because the Raleigh-Durham International Airport boasted an average data rate that was nearly that impressive. When you are in the Raleigh–Durham area, this is the place to get hooked up. (And speaking of connections, Charlotte also ranked #2 for best connection flights!)
Musical departures The Austin-Bergstrom International Airport in Austin, TX, offers a unique experience that fits right in with the spirit of that city. Flyers are treated to live music from local artists on five stages peppered throughout the terminal. Clearly, Austin is working overtime to earn its claim as the Live Music Capital of the World. (You must have an airline ticket, by the way, to catch the tunes here.)
Best for stress (or lack of it) SeaTac, the Seattle/Tacoma airport, is considered top-notch, according to SmarterTravel.com, for its smooth on-site experience which won’t leave you feeling terminal. Security clearance is efficient and friendly here – and there’s plenty of Seattle’s Best and Starbucks coffees to keep you awake enough to make your next flight!
Dine & dash Frequent flyers know that convenient travel doesn’t always allow for delicious meals — unless eating a cold sandwich on your lap is your idea of luxury. Fortunately there are several major airport cities that cater to tenured travelers and provide the best dining this side of the security barricade.
A recent report in Gadling ranked the best airports in which to kill time, and Atlanta’s airport topped the list for best dining. Every concourse has a conveniently-located central food court, as well as eateries peppered between the gates. While Atlanta’s Hartsfield-Jackson Airport includes the standard fast food stops, it also features savory standouts like Cafe Intermezzo, One Flew South and Paschal’s Southern Cuisine. The Atlanta airport also topped the list for amenities, dining and best flight connections.
The Atlanta airport happens to be the central hub for Delta Airlines — just one reason this airport is THE busiest in the world!
En route entertainment You’ve charged your laptop, enjoyed a tasty meal and still have an hour to kill before your next flight. Not a problem if you are in the Minneapolis-St. Paul International Airport. As you straddle the line between Minneapolis and St. Paul, you won’t struggle to find a delightful diversion. Gadling ranked this airport #2 for amenities. (Atlanta ranked #1, but we suspect it was for all that great food!)
When relaxing at the Minneapolis-St. Paul Airport, what fun and comforts do they have in store for you? Why not check out Lucky Lindy’s Video Arcade or enjoy a first-class massage chair at the XpressSpa? You can shop at fifty different storefronts around the airport and the Mall. And there are plenty of dining options to tide you over for a long flight.
Fly the greener skies The Dallas/Fort Worth International Airport scores high for its planet-friendly initiatives. The U.S. Environmental Protection Agency has invited the airport into the Green Power Leadership Club for its collaboration in getting electricity via renewable wind resources. This type of energy-saving – harnessing power from the wind — seems altogether appropriate for an airport!
Being a frequent flyer doesn’t mean you have to lead of life of frequent frustrations. Just make sure you plan a route through these top-notch airports, and you’ll be sitting pretty every time you travel. (And if you really fly a lot, living near one of these airports might be a good idea, too!)
Well, folks, this spring marks a major milestone in the housing market: Annual home list prices have gone negative for the first time in years. In other words, they are actually dropping nationally.
Looking at the country as a whole, sellers have priced their homes this May below where homes were priced just one year ago. That hasn’t happened in recent memory, especially after the past few years of unprecedented price hikes. But as mortgage interest rates shot up, buyers have been unable to afford the higher monthly housing payments.
Something had to give. And while today’s price dips are slight, there are no indications that overall prices will begin rising anytime soon.
So where are home prices falling the most? The data team at Realtor.com® found out. These are mostly places where prices shot up the most during the COVID-19 pandemic in the Western and Southern swaths of the country. In most of these places, there has been a lot of new construction helping to ease the housing shortage and taking the pressure off of prices to remain quite so high.
“Those markets that got the most juiced during the pandemic—where the prices really took off—are the markets where they’re now suffering the biggest declines because affordability has been the hardest there,” says Mark Zandi, Moody’s Analytics chief economist.
“The market is trying to adjust to the surge in mortgage rates and the collapse in affordability,” says Zandi. With mortgage rates hovering around 7%, he believes the price declines will continue in the near future.
“I’d be surprised if we don’t have this same conversation a year from now and prices aren’t another 3% or 4% lower than where they are today,” he adds.
For example, look at Boise, ID, No. 1 on our list, or Austin, TX, which came in at No. 2. Both were practically synonymous with the housing market’s pandemic price pump.
People who previously had to spend their nine-to-five in a big-city office building were turned into remote workers with more flexibility in where they could live. That led many people to leave more expensive cities like San Francisco and Seattle for smaller cities where they could get more space for their money.
The big caveat here is that there are still real estate markets around the country where prices are rising steadily. These are typically more affordable Midwestern markets that didn’t see the large upswings that other markets experienced during the pandemic.
To figure out where prices are falling the most, we looked at the median price per square foot in the 100 largest metropolitan areas. Then we compared median prices in May 2023 with May 2022.
We used price per square foot as the most reliable metric to track home price movement. This means in a few instances, overall home prices in a metro might be rising while the price per square foot is falling. Price per square foot is generally considered a better indicator of prices because it accounts for changes in the mix of homes for sale. For example, right now many larger, more expensive homes are sitting on the market without attracting buyers. Since those homes aren’t moving, it’s bringing up the overall price for these metros. But the price per square foot compares apples to apples and shows that in some of these markets, it’s actually cheaper to purchase a home now than a year earlier.
We looked at only one metro per state to ensure geographical diversity. Metros include the main city and surrounding towns, suburbs, and smaller urban areas.
Here’s where home prices are down the most.
Median listing price: $609,875 Median listing price per square foot: $282 Change in year-over-year price per square foot: -7.8%
Boise has been one of the poster children for the run-up in home prices during the pandemic. The area saw a massive influx of residents and soaring demand over the past few years, especially from Californians. And it’s not hard to see why.
The city checks many of the standard quality-of-life boxes that people are seeking: Homes are larger than the national average, and there’s plenty of natural beauty and outdoor recreation.
Homes in the city, surrounded by mountains, used to be a bargain. Then the pandemic hit, and from March 2020 to May 2022, prices rose 63%. Now prices are coming back down to earth.
“It’s the entry-level homes where we’re losing value,” says Boise real estate agent Rob Inman, with Boise’s Best Real Estate Keller Williams, “those homes that people got into for $400,000 to $500,000.”
That reality is rough for buyers who bought at the peak, Inman says, especially first-time buyers. The one consolation, he says, is the low interest rate they probably have on the mortgage.
But for buyers still looking for a home on the more affordable end of the spectrum in Boise, there’s a lot more to choose from now.
“Now, you can actually find stuff between $350,000 and $425,000, right in that entry-level price point,” he says. “There’s even new construction.”
Median listing price: $583,751 Median listing price per square foot: $276 Change in year-over-year price per square foot: -7.7%
When it comes to pandemic hot spots, you can’t mention Boise without bringing up Austin, too. This cultural hub and capital of the Lone Star State has attracted hordes of tech companies and homebuyers leading to a surge in prices.
During the pandemic, the price per square foot for a home in the Austin metro rose around 75% from February 2020 to May 2022. The median home list price, not standardized for size, went from about $364,000 to almost $630,000. Pandemic price growth in Austin outpaced all others on the list.
Higher mortgage rates have cooled off buyers’ ability to purchase at the same price point. Right now, a relatively new, one-bedroom condo in East Austin is being listed for $420,000, with a recent $5,000 price reduction.
Median listing price: $366,075 Median listing price per square foot: $225 Change in year-over-year price per square foot: -7.3%
Myrtle Beach, nestled in the center of South Carolina’s “Grand Strand” shoreline, is a popular and affordable summer destination. The city, named after the abundant wax myrtle tree in the area, was recently named one of the nation’s most affordable golf towns by Realtor.com.
With its beaches, boardwalk and amusement parks, and plenty of golf courses, it’s another spot where prices rose over the past few years and are now coming down.
Some of that is due to the abundance of new construction in the area. With so many homes to choose from, buyers aren’t under as much pressure to bid them up.
Homes in Myrtle Beach are relatively small, so if buyers aren’t looking for a colossal home, the actual median price on homes there is 15% to 20% less than the national median. This remodeled three-bedroom, two-bathroom house is on the market for $284,900 after a $15,000 price cut.
Median listing price: $529,450 Median listing price per square foot: $274 Change in year-over-year price per square foot: -5.6%
During the COVID-19 pandemic, home prices in Phoenix got as hot as a sweltering Sonoran summer, and just as the monsoons mark the end of the season, raised interest rates have come like a cold downpour on the market. After more than 50% pandemic-era appreciation here, the median price per square foot is down more than 5%.
But the housing boom in Phoenix—as well as the subsequent correction—is nothing new for the Valley of the Sun. Phoenix was one of the markets with the biggest swing up and down during the late 2000s housing bubble and crash.
Part of the reason why is that Phoenix has the capacity for so much growth. Without a real winter to speak of, home construction can go on year-round. And the only thing surrounding Phoenix is more land, so developers can continue to build outward.
“Developers can keep sprawling,” says local real estate agent Angela MacDonald. “Without the new homes, we wouldn’t be able to keep up with the demand for people moving here.”
Even with the price decline, sellers still have a bit of an edge in the market. There are still many buyers and not as many homes to go around.
Median listing price: $549,900 Median listing price per square foot: $305 Change in year-over-year price per square foot: -4.7%
Florida was another red-hot real estate market during the pandemic. As more folks could work remotely, many migrated to the Sunshine State with its low taxes, reasonable cost of living, and year-round warm temperatures.
Part of the reason Sarasota, about an hour south of Tampa on the southwestern coast of Florida, made our list is because it’s also one of the places in the U.S. where the number of homes for sale has risen the most.
Sarasota homes are also spending longer on the market, with the median listing on the market for nearly eight weeks. Homes were selling in about half of that time a year ago.
This midcentury three-bedroom home near downtown Sarasota has undergone a price reduction bringing it down to $499,000.
Median listing price: $635,000 Median listing price per square foot: $247 Change in year-over-year price per square foot: -4.0%
Salt Lake City is another area that’s grown in popularity over the past few years and attracted more tech companies and workers. That led prices to rise—until recently.
“Buyers are holding back a little when it comes to waiving contingencies or inspections,” says Lory Hendry, a real estate agent at Windermere Real Estate in Salt Lake City, ”
That’s in contrast to the frenzy of the pandemic, when fast sales were often sealed without those protections.
Salt Lake City has the biggest homes of any metro on our list. So buyers looking for more home for their money might want to give the city a hard look. Surprisingly, it’s the higher end of the market, the larger, more luxurious homes, where high demand is still leading to quick sales and competition among buyers.
“Anything in that $1 million to $2 million price point is going pretty quickly,” says Hendry.
For people looking for a bit more of a bargain, the Ogden metro, just north of Salt Lake City, is a little less expensive and was recently featured on our list of places where the number of homes for sale is growing the most right now. The number of listings in the Ogden area has roughly tripled over the past year.
Median listing price: $238,250 Median listing price per square foot: $152 Change in year-over-year price per square foot: -3.9%
Venturing outside of the West and South, the “Steel City” is the only Northeastern spot on our list.
Pittsburgh stands out on our list as a place with some of the smaller homes, with a median home size around 1,600 square feet. Combined with a price per square foot that’s about one-third less expensive than the national median, this means the price of a Pittsburgh home is quite a bit lower than in most other places.
This anchor of the Steel Belt didn’t see the same kind of pandemic-era price appreciation as others on the list. However, the overall housing slowdown seems to have pulled down prices anyway.
Buyers looking in the area can find a three-bedroom home in the South Side Flats neighborhood for $285,000. It recently underwent a $10,000 price reduction.
Median listing price: $345,899 Median listing price per square foot: $148 Change in year-over-year price per square foot: -3.6%
For the previous few metros on our list, there’s a quirk to how home price data is affected by the mix of homes for sale. The anomaly is the most pronounced in the Winston-Salem metro. While the median list price per square foot has dropped, overall prices in the metro are rising.
This is due to shifting buyer preference. As mortgage rates rose and buyer budgets shrunk, many buyers shied away from larger, more expensive homes. That left these properties on the market as the cheaper, smaller homes were more quickly scooped up. The bigger homes have been pulling up overall prices for the metro even though local real estate costs less than it did a year ago.
If you were to compare the median home list price in Winston-Salem with Pittsburgh, you’d see that the Winston-Salem price is about $100,000 more. But the median home listing in Winston-Salem is more than 500 square feet larger. So buyers get more space for their money.
A nearly 100-year-old, three-bedroom home about 10 minutes south of downtown Winston-Salem is listed now for $220,000, after a $9,000 price reduction.
Median listing price: $662,875 Median listing price per square foot: $340 Change in year-over-year price per square foot: -3.4%
Sacramento, California’s capital city, may be the most expensive of any on our list, with homes priced around 50% higher than the national average. But for California, Sacramento is cheap! The state’s median list price per square foot is more than 30% higher.
The city became a popular alternative to the pricier San Francisco Bay Area during the pandemic as buyers sought out more space for less money. But as companies have been calling workers back to their offices, the area isn’t as hot as it was during the pandemic. There has also been plenty of new construction in the area.
A two-bedroom townhome near downtown Sacramento can be picked up for a little under $500,000 right now.
Median listing price: $376,000 Median listing price per square foot: $205 Change in year-over-year price per square foot: -1.1%
The real estate market in the “Windy City” is really a tale of two cities, says Compass real estate agent Amy Duong Kim.
Chicago’s dense downtown should be thought of as one market, she says. The suburbs on the periphery, where about two-thirds of the metro residents live, should be thought of as another.
“In River North and Gold Coast and the other downtown neighborhoods, they were hit the hardest during COVID,” Duong Kim says. “Unfortunately, they haven’t bounced back yet.”
The listing data backs up her point about the two different markets of Chicago. Where the larger metro area is showing a 1.1% decline in price per square foot, the city of Chicago at the center of the metro is showing the list price per square foot is down just a little more than 4%.
This two-bedroom, one-bathroom condo in downtown Chicago is on the market for $299,000.
What happens when mortgage forbearance ends? On today’s State of the Market podcast, Auction.com’s Daren Blomquist joins us to discuss the possibility of a massive wave of foreclosures hitting the market. We talk about current property prices, dive into detailed foreclosure stats, and more. Tune in and get information on everything you need to know as a Realtor, investor, or prospective homebuyer.
Listen to today’s show and learn:
The shadow inventory of foreclosures [4:41]
Daren’s thoughts on what will happen to properties in forbearance [8:21]
The average equity loss for properties in forbearance [11:23]
Foreclosures in Texas [14:37]
Bubble or boom? Daren’s thoughts on housing prices [19:48]
Why the first-time-homebuyer tax credit is the wrong solution [24:29]
The eviction moratorium’s impact on landlords [26:37]
Daren’s foreclosure stats [34:22]
The average price of foreclosure sales compared to total debt [40:47]
Where to find more of Daren’s foreclosure research [42:16]
Daren Blomquist
Daren Blomquist is Auction.com’s new Vice President, Market Economist. Recently, Daren served as Vice President at Attom Data Solutions where he was widely recognized as an authority in the housing and mortgage industries. In his new role, Daren focuses on analyzing and forecasting complex macro and microeconomic data trends within the marketplace and greater industry.
Daren mines real estate data for key insights and trends to help businesses and consumers make better decisions. Prior to Auction.com, Blomquist directed ATTOM Media, a division of ATTOM Data Solutions, which publishes original real estate reports and analysis.
Related Links and Resources:
Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Over the years, we’ve learned that buying homes near certain types of businesses can boost the value quite substantially.
For example, homes near Starbucks tend to outperform those near a Dunkin’ Donuts, and you’re better off buying a condo next to a Target, not a Walmart.
If there’s a Whole Foods or Trader Joe’s nearby, even better. Throw in a good school and you’ve hit the housing jackpot.
Schools Matter Whether You Step Foot in Them or Not
Plenty of homeowners purchase properties with kids in mind, particularly because of the nearby schools. After all, private school isn’t getting any cheaper.
But aside from saving a ton of money on tuition costs, you can also gain a ton of home equity simply by choosing to purchase a property in a good school district.
The new parent company of RealtyTrac, ATTOM Data Solutions, decided to analyze this phenomenon and discovered it’s pretty darn significant.
They looked at 2015 average test scores from nearly 19,000 elementary schools nationwide across 4,435 zip codes that cover a combined 45.9 million single family homes and condos.
From that they found that of the 1,661 zip codes with at least one good school, the average estimated home value (as of July) was $427,402, a 77% premium compared to the $241,096 average in the 2,774 zip codes without any good schools.
So you might be thinking wait, homes near good schools are a lot more expensive. While that might be true, the home price appreciation in good school districts wallops the performance of inferior school districts.
In areas with a good school, home prices have increased an average of $74,716 since the time of purchase, compared to just $23,311 in zip codes without any decent schools.
On a percentage basis it’s a bit closer, a 32% gain versus 27.5%, but still noticeably higher. On a dollar amount basis, we’re talking another $51,000 in your pocket. That’ll come in handy for college.
Overall, the return on investment (ROI) was better in zip codes with at least one good school versus those without good schools in 114 of 173 metro areas.
There were some outliers, of course. The more notable areas include zips without good schools in Los Angeles, Riverside-San Bernardino, Sacramento, Orlando, and Washington, D.C.
I suppose sometimes a stellar location is enough to drive value, even if the schools are no good.
Home Prices Are More Volatile in Bad School Zones
The company also discovered that home prices are more volatile in zip codes without good schools.
During the recent downturn, between 2006 and 2011, median home prices fell 28.9% in areas without good schools.
Meanwhile, the drop was only 23% in areas with at least one good school, so they held up better.
At the same time, home price appreciation in zips without good schools outpaced the better school zones over past five years during the real estate recovery (up 47.9% vs. 42.2%).
ATTOM Data Solutions senior vice president Daren Blomquist noted that this volatility could potentially benefit homeowners over the short term, but most likely won’t over a span of 10 years or more.
You should still be okay over the long term though…seeing how forgiving real estate is.
However, homes in poor school districts have yet to fully recover; year-to-date, median home prices in the bad school districts are still 1% below levels seen in 2006, while homes in good school districts are up 4.5% from previous peaks.
The Best of Both Worlds
It appears it’s no secret when a certain area has a good school nearby, but there are still some bargains out there if you look hard enough.
ATTOM compiled a list of 117 zip codes as “Good School Bargains” where one can purchase a property for $150,000 or less (based on median) and still take advantage of at least one good school in the area.
Additionally, both school scores and home prices have improved in all of these areas from one year ago and from fives years ago. So things are only looking up.
Here are the top ten, with the highest rank indicating the least home price appreciation over the past 10 years, meaning it still might have quite a bit of upside.
What will happen once foreclosure moratoriums are finally lifted? That’s what everyone, including us, wants to know. Last month, Aaron interviewed a variety of industry experts to get their thoughts on what comes next. Plus, several top real estate agents, including fan favorite David Greene, came on the show to share sales strategies listeners can use to win more business in today’s highly competitive markets. Tune into this special highlight episode and catch May 2021’s best Real Estate Rockstars podcast moments.
Listen to today’s show and learn:
The best way to learn the language of sales: immersion [1:10]
Jas’ strategy for scaling sales with content [2:52]
The shadow inventory of foreclosures [5:06]
Bubble or boom? Daren’s thoughts on housing prices [7:17]
Why a new-homebuyer tax credit is a bad idea [9:08]
How eliminating capital gains tax would help the housing market [10:24]
Why average Americans may not be able to buy a house in the future [11:16]
San Francisco single-family homes selling fast and high [12:50]
Why we’re bullish on real estate [15:26]
How to see market shifts before they happen [15:57]
Daniel’s advice for agents and investors [18:20]
How to see market shifts before they happen [15:57]
Daniel’s advice for agents and investors [18:20]
Taylor’s client-centric mindset [19:33]
The money mindset makeover [21:35]
Why we may not see a huge spike in foreclosures [27:17]
How today’s regulatory environment could prevent a foreclosure crisis [29:40]
Related Links and Resources:
Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
The 2020 Home Buyers and Sellers Generational Trends Report highlighted similarities and differences across generations of home buyers and sellers. This report takes a look at trends among generational groups within the following 7 categories:
Characteristics of Home Buyers
Characteristics of Homes Purchased
The Home Search Process
Home Buying and Real Estate Professionals
Financing the Home Purchase
Home Sellers and Their Selling Experience
Home Selling and Real Estate Professionals
Overall, Millennials made up the largest share of home buyers at 38 percent.86% percent of Younger Millennials, and 52 percent of Older Millennials were first-time home buyerswhile buyers from ages 40 – 54 (Gen X) consisted of 23% of recent home buyers.
On average, Gen X homebuyers bought the largest homes in size at a median of 2,000 square feet and also moved the shortest distance. The biggest motivations for people above age 55 who purchased a new home were: the desire to own a home of their own, being closer to friends and family, and living in a better area.
Sellers 65 to 73 years (Older Boomers) made up the largest shares of sellers at 23%. Those who were 55 years and older often purchased a similarly-sized, but less expensive home than they sold while moving further away.
Chapter 1: Characteristics of Home Buyers
Characteristics of Home Buyers covered trends among married couples, unmarried couples, single buyers, and buyers with children under the age of 18. Sixty one percent of buyers between ages 30 to 39 had at least one child under the age of 18 residing in their home. 👶
Do you have children? If the answer is yes, or if you are planning to in the near future, you should consider the following 5 key items when searching for a home:
1. School districts
2. Access to local services and amenities
3. Privacy
4. Safety
5. Storage
Chapter 2: Characteristics of Homes Purchased
Home Inspection:
39% of recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity.🔌🔨🔧💡
Before buying a home, it is always important to check the exterior for any damages. According to the National Association of Realtors Report for 2020, windows, doors, and siding were very important factors that mattered to home buyers between ages 65 – 73. It’s always a smart idea to hire a professional to inspect the interior and exterior of a home before making an offer. Here is a list of 9 Important Exterior Items to Check When Buying a Home:
Foundation
Grade of Property
Settling
Downspouts
Roof
Chimney
Windows
Siding
Concrete Stoops, Patios, and Walks
** It is worthwhile to note that the damages on this list don’t necessarily mean you should cancel a potential purchase, but you should get information on whether or not these things will be fixed and how they might be accounted for in the price. If you have any questions or are looking for home inspector referrals, reach out to be connected to a Total Mortgage loan officer and we can make sure you get the quality in a home that you deserve!
COMMUTING:
Commuting costs were very important at 45% for buyers 22 to 29 years.
Deciding where to buy a home starts with finding a neighborhood that fits your lifestyle and has a cost of commuting that you’re willing to accept. Most people are still working from home, however not everyone is so lucky.
Did you know that the average one-way commute time for most Americans is 26.1 minutes? 🚗 For people who work 5 days a week, that adds up to an average 4.35 hours weekly! This may not seem like a lot but reality kicks in when you start to consider gas money, mileage, funds for public transportation and more. So, if you are looking to buy a new home, make sure you choose a location that makes the trip to work worth it! 😊
Chapter 3: The Home Search Process
According to the National Association of Realtors Report for 2020, the most important website feature were photos for nearly nine in 10 buyers under the age of 55.If you are looking to sell your home, it’s important to have professional pictures and sufficient property information listed online. 📸 Detailed information about properties for sale were also very important to all age groups.
Now, you might be wondering; how long does it typically take to find a new home? According to the National Association of Realtors Report for 2020, buyers typically searched for 10 weeks and looked at a median of nine homes.
Chapter 4: Home Buying and Real Estate Professionals
Why you need a Real Estate Agent:
Are you a pro at negotiating? 🤝 Do you like doing loads of paperwork? 📄 Most likely the answer is “no” because ain’t nobody got time for that! In 2020, it was reported that the majority of home buyers between the ages of 22 – 29 and 74+ wanted an agent to help with paperwork. Agents not only specialize in negotiating and understanding contracts, but they also are power players when it comes to getting the paperwork taken care of.
Home Buying Process:
Do you know how the home buying process works? 🤝🏡💵If not, that’s okay! Actually, most people don’t fully understand how the home buying process works from start to finish. According to the National Association of Realtors Report for 2020, help understanding the purchase process was most beneficial to buyers 29 years and younger at 85 percent and for buyers 30 to 39 years at 69 percent.
Regardless of age, the majority of people really benefit from having assistance with the home buying process. To gain a better understanding, check out the graphic below. Now is the time to start making moves towards finding your dream home!
Chapter 5: Financing the Home Purchase
Saving for a Down Payment:
If you are a prospective first-time home buyer struggling to save money for a down payment, you aren’t alone. According to the National Association of Realtors Report for 2020, 13% of all buyers cited that saving for a down payment was the most difficult step in the home buying process. If you’re looking to buy a home but need help saving, check out these tips on How toSave for a Down Payment on a First Home: https://www.thebalance.com/how-to-save-for-a-down-payment-on-a-house-1289847
Student Debt:
Debt hindered prospective home buyer’s ability to save for a down payment by a median of four years and came primarily from student loan debt.
Most people don’t know this but you can still get a mortgage if you have student debt! A lot of first-time home buyers worry about qualifying for a mortgage while still owing student loans. In 2020, 24% of all buyers reported having student loan debt with a median amount of $30,000.
If you are someone who has student loan debt but want to purchase a home, check out this article on How to Buy a House Despite Student Debt: https://www.cnbc.com/2020/01/31/have-student-debt-you-can-still-get-a-mortgage.html
Build Your Savings:
Even without debt, saving money for a down payment can feel like a struggle. Are you wondering how you can alter your spending habits to increase your savings? According to the National Association of Realtors Report for 2020, it was most common for buyers to cut spending on luxury/non-essential items, and on entertainment to save for their home purchase.
Saving efficiently starts with small habits that stay consistent over time. Here are 10 tips to help build your savings:
1. Transfer a fixed amount into a special savings account every month.
2. Skip vacations for a year.
3. Lower your expenses.
4. Reduce your high interest rate debt.
5. Borrow from a relative.
6. Borrow from your retirement plan.
7. Sell some of your investments.
8. Get a second job.
9. Make a deal with the seller.
10. Look into down payment assistance.
Chapter 6: Home Sellers and Their Selling Experience
Equity:
CHA-CHING! 💸Want to know how to get the most equity out of selling your home? Recently sold homes were typically on the market for a median of three weeks and sellers made a median of $60,000 in equity from their sale. If you want the most value, check out these important tips: https://www.opendoor.com/w/blog/how-to-sell-your-house-for-the-most-money
Understand your local market
Choose the right time to sell
Set the right price
Understand how much it really costs to sell a home
Determine how you’re going to sell
Consider minor renovations that add value at minimal cost
Negotiate the best offer – not just the highest offer
Incentives:
Offering different incentives can help attract buyers and potentially increase the value you can get from selling your home! 🏡 According to the National Association of Realtors Report for 2020,34%of all sellers offered incentives to attract buyers. This varied across age groups where it was less likely for sellers 74 years and over to offer incentives and more likely for sellers 55 to 64 years.
Buy down their interest rate
Include furniture or window coverings
Credit for non-recurring closing costs
Offer buyers’ brokers higher commission
Credit for “Close By” date
Chapter 7: Home Selling and Real Estate Professionals
According to the National Association of Realtors Report for 2020, All generations of buyers continued to utilize a real estate agent or broker as their top resource to help them buy and sell their home. While the internet is increasingly incorporated as an important tool in the process, buyers needed the help of a real estate professional to help them find the right home, negotiate terms of sale, and help with price negotiations.
If you are someone who is looking to buy or sell a home, here are 5 reasons why it is wise to utilize a real estate professional: https://www.forbes.com/2010/05/25/why-you-need-real-estate-agent-personal-finance-commission.html?sh=6d0aede94496
Better Access/More Convenience
Negotiating is tricky business
Contracts Can Be Hard to Handle
Real Estate Agents Can’t Lie
Not Everyone Can Save Money
Please feel free to reach out to us at Total Mortgage with any questions!