If you are thinking of selling your home, think sustainability.

A new survey by the National Association of Realtors just came out, and it made some remarkable

points. For example, 61% of Realtors said clients are interested in sustainability. Also, a whopping 71%

of Realtors said energy efficiency is valuable in helping sell a home.

So, if you are interested in sustainability and you want to sell your home for a higher price, here are

three projects to consider:

1. Energy-efficient appliances. Energy Star-certified appliances such as fridges, washing machines,

and clothes dryers can be as much as 40% more water efficient and 25% more energy efficient than

standard models. Those numbers go way up if you compare new energy-efficient appliances with

models that are more than a few years old.

Other gadgets throughout your house might also warrant an update. For example, if you have an

old thermostat or an inefficient water heater, then smart new alternatives such as the Nest thermostat

or solar water heaters might also be worth a look.

2. Solar panels. Speaking of solar, homes with solar panels sell 20% faster, according to the National

Renewable Energy Laboratory. Even more impressive, they sell for a whopping 17% more than

comparable homes without solar. And with a range of state and federal incentives still in place, solar

can be a great way to make your home more green and attractive at the same time.

3. Windows, doors, and siding. Renovated windows, doors, and siding typically recoup about 80%

of their cost in terms of higher home value. However, a full suite of energy-efficient windows, doors,

and siding might be worth even more in the current sustainability-minded market. Plus, these projects

increase your home’s curb appeal, making it more likely your home will get more interest from

potential buyers.

Any of these projects can potentially add a lot of value to your home. If you want to discuss which

sustainability projects might make the most sense in your particular case or what kind of sale price

you could achieve, please feel free to give me a call.

If you have any other questions or real estate needs, feel free to call or email me anytime. I would be

happy to help you.

There's no doubt about it. It's a very competitive market today if you are looking to buy a home.

Inventory is near record lows, and more and more homebuyers are entering the market. This means you need every advantage to grab that perfect home when you do find it.

One no-brainer is to get pre-approved for a mortgage. A pre-approval informs you of how much you can borrow and you will prepare you for future steps.

A pre-approval can mean the difference between having your offer accepted or having to watch your dream home go to somebody else in a crazy market like this.

In spite of all these good reasons, less than 10% of buyers who get a mortgage get pre-approved by the lender who originated the loan. In other words, you can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house.

 

A pre-approval definitely gives you a leg up on the competition.

Here are a few things that you will need:

1. Proof of income. At a minimum, lenders will want to see pay stubs from the past 30 days showing your year-to-date income, two years of federal tax returns, and two years of W2 forms from your employer.

2. Proof of assets. You will need to present statements from your checking, savings, or investment accounts to prove that you have funds for the down payment and closing costs.

3. Good credit. Most lenders reserve the best rates for homebuyers with a credit score of 740 or above. You can still qualify for a mortgage with a lower credit score, but a good lender will also recommend ways that you can improve your credit and qualify for a better loan.

These are the biggest and most common things you will need to get pre-approved, though your lender might want to see some other documents as well.

Once you are pre-approved, the buying process will be faster, more convenient, and less stressful. Most importantly, it will make it more likely that your offer for that perfect home gets accepted.

If you have any questions for me or need any additional assistance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

There's a bit of a controversy brewing among real estate experts. The topic is the best time of year to sell a home. On one hand, real estate agents across the country agree: Spring is the best time to sell your home.

However, do the facts actually support this view? The folks at real estate web platform HomeLight wanted to find out, so they crunched the numbers on actual home sales in different markets to see when the best time to sell a home actually was.

In general, spring did come out on top in many situations. However, there were also many exceptions.

For example, in Greenville, SC, the best month was July, beating out the average sales price by 150%. In Breckenridge, CO, February was the winner, with a 106% increase over the average. In Tomball, TX, homes sold in October for 133% more than the average for the year.

 

It’s not as simple as saying that spring is the best time to sell your home.

What does this all mean for you? If you want a broad recommendation for when to sell your home, then simply listing your home now at the very start of spring is a recommendation that can't be beat.

There are plenty of other details that go into the optimal decision. Weather is a big one. Recent real estate trends in the area would be another. The specifics of your own home and the kinds of homebuyers it is likely to attract is a third and crucial aspect. There are fewer homebuyers in the fall and winter, but they tend to be more serious and eager to find a home before the holidays. In the summertime, there might be added pressure to buy a home before the school season starts.

In short, it's not as simple as saying spring is the best time to sell your home. If you have any questions for me, give me a call or send me an email and we can discuss all the unique attributes your home, put them in the context of recent trends in the McAllen real estate market, and come up with a winning strategy of when you should list to get the best price. I look forward to hearing from you soon!

Do you notice that pile of cash you're sitting on right now? 

I'm not joking. 42 million homeowners with mortgages have equity in their home right now.

When added up, tappable home equity recently reached $5.5 trillion. That's about $3 trillion more than when the housing market bottomed out in 2012. "Tappable equity" here is defined as the amount a homeowner could borrow before they hit 80% of debt to value.

Not surprisingly, many homeowners are looking to tap into these hidden reserves. As just one sign of this, mortgage applications are up 4.1% this January over last year. That's mostly been driven by mortgage refinances, as homeowners are looking to take advantage of low (but increasing) rates to take out some of that equity as cash.

Another option to a mortgage refinance is a home equity line of credit (HELOC), a kind of checking account on your home. While HELOCs have been growing in popularity, they've hit a slight snag recently because the new tax bill eliminates the deductions for interest paid on such lines of credit. 

Many homeowners are tapping into their equity now.

What are homeowners who tap into their equity actually doing with the extra cash? Most people are spending it on making their homes even more valuable. According to one survey, 80% of borrowers would consider using that cash to renovate their home. 

However, other homeowners are using their home equity to cover education expenses, to pay down other debt, or simply for investing, whether in stocks, real estate, or even cryptocurrencies.

So should you tap into your home equity?

I can't say either yes or no. It’s something you’ll have to decide on your own. However, if you have any questions or would like us to take a look at your specific situation to see what your best move is, we would be glad to help. Don’t hesitate to give me a call or send me an email any time. 

Here are three ways to winterize your home. Making these improvements will save you money and add value to the home.

Winterizing your home can pay for itself and then some. It can help you save money on costly repairs. The right project could save you money directly in the form of lower utility bills. The right winterization project could significantly increase the resale value of your home.

But here's the thing: Not all winterization projects are equally valuable. That's why I've collected the top three projects that stand out in terms of the return they will give on your investment.

1. Fiberglass attic insulation. Each year, Remodeling Magazine releases its Cost vs. Value Report for various home upgrades. This year, only one project had an ROI of over 100% and that was fiberglass attic insulation. If you add insulation to your attic tomorrow and decide to sell your home right after, you can expect that you will be able to sell for a premium. Even if you aren't selling your home just yet, then the improved attic insulation will accrue even more value, in terms of lower heating bills and increased comfort in your home.

2. Energy-efficient windows. A typical window replacement yields over a 70% return in terms of the resale value of your home. Depending on the shape of your current windows, you could save an additional 15% or more off your heating bills. Plus, new windows can add even more value to your home in terms of increased thermal and acoustic comfort, more light, and better design.

New, energy-efficient windows bring a nice ROI.

3. Gutters and downspouts. This last item won't save you money directly by cutting down your energy bills. It could, however, save you tens of thousands of dollars in terms of avoided repairs. Clogged gutters and downspouts can trap moisture. When the weather gets really cold, they can also help ice to form. This can ruin your roof and sidings, causing tens of thousands of dollars in damage. It will also impact the curb appeal of your home, which generates higher returns in terms of resale value than remodeling the inside of your home.

And those are three of the best winterization projects you can undertake to maximize your investment. If you have any questions for me about any of these upgrades or anything else related to real estate, give me a call or send me an email. We look forward to hearing from you soon.

Why are homebuyers more optimistic than they have been in the past few years? Here’s what we found.

Here’s a paradox for you: Right now, homebuyer confidence is at an all-time high, according to a survey performed by Fannie Mae. Furthermore, an increasing number of people, particularly renters, think now is a good time to buy a home. Yet at the same time, housing inventory remains very tight. It’s down 6.5% nationally from last year. Home prices are also up 6.9% nationally over last year.

In other words, homebuyers are optimistic at a time that the market seems to be favoring sellers. So, what's going on? Why are homebuyers so optimistic all of a sudden? Here are three possible explanations:

1. Lending is loosening up. Over the past several years, mortgage rates have seen historical lows. This has meant that homes are actually more affordable, in spite of the increase in prices. However, lending has been very tight. Fortunately, that’s changing. Lenders are approving mortgages at the highest rate since 2011, with 77% of mortgages for home purchases approved.

2. Jobs are looking good. At the moment, fewer homebuyers are worried about losing their jobs, according to the same Fannie Mae survey. It's not just job security that's contributing to greater optimism about buying a home. Overall income is higher, making homes more affordable by comparison. The median household currently has 150% of the income needed to buy a median home, compared to a historical average of just 125%.

3. Long-time renters are ready to buy. Millennials, the generation of people born after 1980, have largely opted out of homeownership until now. They have been renting for a longer time, putting them higher up on the pay scale compared to previous generations of first-time homebuyers. But now, many millennials are finally hitting an age when they are willing to commit to buying instead of renting. This is reflected in the Fannie Mae report, which states that much of the increase in homebuyer optimism comes from current renters.

What all does this mean for you? If you're looking to buy a home, all of the above reasons should give you confidence that now is indeed the right time to buy.

 

Investing in real estate is no longer restricted to the super wealthy. According to a recent survey, real estate investors now make up 15% of the population. That translates to almost 50 million individuals who invest in at least one property other than their primary residence. 

In fact, 89% of U.S. investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation that come with investing in multiple properties.

Real estate investing is on the rise. Here are five different ways you can get involved.

Are you curious about investing in real estate? If so, here are five different ways you can get started:

1. Buy and rent

This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this kind of investing because rental rates are on the rise (8% since last year) but the downside of this investing approach is the time and effort needed to manage and maintain your investment.

2. Buy and sell

Also known as home flipping, this involves buying a property and reselling it soon after for a profit. Home flipping has offered a record-breaking 49% return in 2016. 

3. Real estate investment groups

Real estate investment groups are organizations that buy a set of properties and then sell them to individual investors.The main benefit of this approach is that you typically do not need to act as the landlord because the investment group handles property management for you (for a fee of course).

4. Crowdfunding sites

Recently, there's been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees which can eat into your profits. 

5. REITs

Real estate investment trusts (REITs) are like mutual funds for real estate.They typically pay high dividends. However, they also do not offer all of the typical benefits of investing in real estate, such as increased leverage and tax benefits. 

Each of these investing approaches offers a tradeoff between possible profits, risks, and costs. The one constant is that you can minimize your risks with due diligence and by consulting with an experienced real estate professional.

If you have any questions for us or you’re interested in investing in real estate yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

If you plan on selling your home, here are five tips to help you entice buyers in record time: 

1. Stage the house. Make sure the property is depersonalized and decluttered. You want to showcase the space, not your belongings. People want to be able to envision their own things in your house. Staging will ultimately help you get a higher offer as well.  

2. Boost the curb appeal. Buyers get their first impression of your home when they drive up, so make sure there isn’t any dead grass or brown shrubs. Clear the walkways up to the front door and make sure everything looks nice and neat. Curb appeal has a huge impact on buyers—it’s how they decide whether or not to see the inside of the house.  

3. Brighten up your living space. No buyer wants to walk into a dark, dreary house, so replace or clean all of your light bulbs both inside and outside the house. The same goes for lamps. You can also install mirrors over your fireplace or in the dining room to create the illusion of more space. 

4. Make energy efficient upgrades. Add insulation to your attic and replace your thermostat with a programmable one. You can also update the weather stripping on doors and windows. Any energy efficient changes will be a great selling point. 

Promote your listing on social media!

5. Promote your property everywhere, especially on social media. Post your listing to Twitter, Facebook, and Instagram. Let your circle of friends and family share your listing to their personal networks. Everyone starts searching for homes online and through social media these days, so you need to make sure your property can be found. 

If you have any other questions about selling your home, just give me a call or send me an email. I would be happy to help you!

If you’ve been considering selling your home, now is the time to do it. This summer is shaping up to be one of the most favorable seasons in recent years to sell your home quickly and for top dollar. 

However, this moment won’t last forever. 

Mortgage rates are still very low. Right now, the 30-year mortgage rate has dipped to 3.9%, which is far from the 4.5% experts predicted for 2017. These continuing low mortgage rates translate into more affordable homes and eager buyers looking to lock in these low rates while they last. 

We’ve seen this eagerness in action lately. Demand is so strong that home sales actually increased in both April and May, despite the fact that the supply of homes on the market is currently at a seven-year low. As a result of strong demand and tight inventory, home prices reached a record high this May, rising 6% compared to May 2016. It was the 63rd straight month of year-over-year gains.

If you’re thinking of selling your home, the time to do so is now.

What does this mean for you?

These conditions make it very easy for you to sell your home right away for a very favorable price, but they also point to a correction which might appear soon in our market. For example, the increase in sales numbers is likely to push up mortgage rates, making it less affordable for buyers to buy. The ongoing Federal Reserve rate hike might contribute to this as well. 

Furthermore, the continuing demand and high home prices will eventually spur construction of new homes. The record-high confidence levels reported recently the National Association of Homebuilders support this. All this new construction will certainly impact the growth of home prices, and might even drive them down. 

So, again, if you’re thinking of selling your home, the time to do so is now. 

If you have any questions about our current market or need help getting started on selling your home quickly and for top dollar, don’t hesitate to give me a call or send me an email. I’d be happy to help.

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment. That’s why I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period:

Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees. 

Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt. 

Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you. 

But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust.

There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret. 

An inspection will cost about $300, but it can save you thousands.

A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out.

The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home.

If you need more advice or you are ready to start looking for a home, get in touch with me. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.