So, you've stumbled upon the house of your dreams, but there's one catch – it doesn't come with a backyard. Should you immediately hit the panic button for your home search? Does it signal a disaster for potential resale value? Not necessarily. According to real estate experts, there are three compelling reasons why a house without a yard might still be the perfect home for you.

1. No Need for the Outdoor Space

Real estate professionals, like Associate Broker Lindsay Barrett from New York, assert that the absence of a yard isn't a deal-breaker if you have no intention of using it. "The reality is, a lot of people don't ever use it," she points out. For instance, if you already own another property, like a vacation home, with ample outdoor space, you might not miss a yard in your primary residence." Elena Maestrone, a licensed agent with Tom Crimmins Realty in New York, seconds this perspective. She believes that most homebuyers have a clear vision of what they want in a home, and a yard doesn't always top the list. Some buyers might even overlook the absence of a yard if they frequently spend time with a family member living in the area who has a yard with amenities like a pool.

2. It's Not All About Resale Concerned about how a yard less home will perform on the resale market? Maestrone reminds us that while the presence or absence of a yard is considered when evaluating neighborhood comparables, it's just one of several factors considered. These factors include the home's square footage, the number of bedrooms, the quality of finishes, and more.

Barrett acknowledges that a yard less property could potentially impact resale value, depending on the market conditions. However, she also emphasizes that if you love the home and it suits your needs, chances are it will appeal to someone else when it's time to sell. In essence, enjoy your home without losing sleep over resale concerns.

"Pay the right price for the property, and there's no reason to doubt its appreciation potential, matching or coming close to other properties in the area," Barrett advises.

In summary, a yard less home can be an ideal choice, especially if you don't require outdoor space or if you have a deep affection for the property and it aligns with your requirements. While resale value is a factor to bear in mind, it should never eclipse the happiness and contentment your home brings. Whether you're in search of the perfect house, with or without a yard, don't hesitate to get in touch with Scott and the Smolen Team today to find the home that suits you best.

When relocating to a new city, securing a mortgage can feel like one more daunting task on an already full to-do list. However, with proper planning and the right steps, the process can be smoother than you might expect. Whether you’re moving for a new job, to be closer to family, or just for a fresh start, getting a mortgage doesn’t have to be complicated. Let’s dive into some tips that can make your mortgage move stress-free.

Get Pre-Approved with a Lender First

One of the first things you should do when relocating is to get pre-approved by a lender. You don’t need to be physically present in your new state to start this process. Gather your financial documents, including your W2s or 1099s, pay stubs, and bank statements, and submit them to a lender licensed in your new state. If you’ve already accepted a new job, include your offer letter or employment contract as well.

Pre-approval gives you a clear picture of what you can afford and helps avoid any surprises down the road. Many lenders offer online and mobile platforms that allow you to complete the process without even stepping into an office. With pre-approval in hand, you can start house hunting with confidence.

Emphasis on Employment

When applying for a mortgage, especially while relocating, steady employment plays a significant role. Lenders typically like to see at least two years of stable work history. If you’re simply transferring your current job to a new location or working remotely, this won’t pose any issues. However, if you’re starting a new job, there are a few things to keep in mind.

Getting a Mortgage with a New Job

If your new job is within the same field, lenders usually won’t have concerns as long as it doesn’t negatively impact your income. For example, moving from a marketing position in one company to a similar role in another won’t raise red flags, especially if your income remains stable or increases. A signed offer letter or employment contract can often be used as proof of income in place of pay stubs.

However, if you’re transitioning into a new career field, or taking time to job hunt, lenders will dig deeper into your future employment plans. In such cases, having a solid savings cushion is essential to cover living expenses while you build employment history. Additionally, if you’re relocating with a spouse or partner who has stable employment, they can act as a co-borrower to increase your chances of loan approval.

Don’t forget to consider the cost of living in your new area. A new job may pay more, but housing costs in your new city could also be higher. Be sure to study up on your new market to understand what you can comfortably afford.

Military Moves

Active-duty military members have unique benefits when it comes to home buying. If you’re relocating due to military orders, you likely already have the employment stability needed for mortgage approval. A VA loan offers incredible advantages, including no down payment requirements, making it easier to buy a home. Plus, relocation assistance programs (RAP) offered by your branch can help cover moving costs and other expenses.

For retired military members, VA loan benefits still apply even if you’re relocating. However, lenders will want to see your retirement income or new employment details to complete the mortgage process.

In Conclusion

Relocating can feel like a whirlwind of change, but with the right approach, getting a mortgage doesn’t have to add to the stress. By getting pre-approved, understanding how your job situation affects your loan options, and tapping into resources like VA loans for military personnel, you can simplify the process and focus on settling into your new home. Ready to take the next step? Reach out to Scott and the Smolen Team for guidance on securing a mortgage and making your move a success!

Once you have cleared out your parents’ home, preparing it for sale involves several key steps. The process is like selling any other home, but requires additional consideration given the circumstances.

Complete Basic Home Preparations

Start by giving the house a thorough cleaning inside and out. Decide whether to invest in repairs or updates. If the kitchen and bathrooms have not been updated since the 1980s, consider making some improvements if you aim to maximize the sale price. However, if you are overwhelmed with grief or have limited resources, basic cleaning and perhaps a fresh coat of paint might suffice.

Consider Selling As-Is

If you prefer not to invest in repairs, selling the house as-is is an option. This might mean accepting a lower sale price but can also help avoid hefty capital gains taxes. Disclosure rules for inherited properties are generally more lenient since you were not the primary resident. However, be aware of your potential liability for undisclosed major issues, depending on how you inherited the property.

Conduct a Pre-Listing Inspection

A pre-listing inspection can identify issues with the property but also requires disclosure of any problems found. If you live far from the property, your real estate agent will manage the sale and handle inspections.

Set the List Price and Sell the House

Setting the right price is crucial. Avoid letting sentimentality influence your decision; instead, rely on a Comparative Market Analysis (CMA) to determine the fair market value based on recent sales of similar homes. Consider the tax implications of the sale and remember that selling at or slightly below market value might be beneficial in the long run, especially if it results in a quicker sale.

Keep an Eye on Time and Costs

Owning the home incurs ongoing costs, including utility bills and maintenance. The sooner you sell, the less you will spend on these expenses. Keep the house in good condition to attract buyers and avoid additional costs.

In Conclusion

While selling your parents’ home is an emotionally challenging process, careful preparation and realistic decision-making can simplify it. By addressing repairs, setting an appropriate price, and understanding your legal and tax obligations, you can manage the sale efficiently. Do not hesitate to enlist the help of experienced professionals to guide you through this process, ensuring that everything is handled with care and attention. If you are ready to start the process, contact Scott and the Smolen Team. They can provide expert guidance and support to help you navigate this complex and emotional journey.

Navigating the homebuying process can be complex, especially for first-time buyers. Partnering with a skilled real estate agent can simplify the journey and help you achieve your goals. Here is how to find the perfect agent to guide you through this major transaction.

1. Seek Recommendations from Your Network

Start by asking friends, family, and neighbors for recommendations. Word-of-mouth referrals are invaluable, especially if you know someone who has recently bought their first home. According to the National Association of REALTORS® 2023 report, first-time buyers increased by 6% last year, so there are likely many who can share their positive experiences.

2. Check Online Reviews

Online reviews provide insight into agents’ reputations and client satisfaction. With more agents entering the field, it’s crucial to find someone you can trust. The RE/MAX Future of Real Estate Report highlights that trustworthiness is a key factor for today’s homebuyers, so review comments and ratings carefully.

3. Use Digital Databases

Search online for real estate agents in your area using broker websites. These platforms let you filter agents based on specialties and languages spoken. Explore their profiles to learn about their experience, skills, and contact details.

4. Schedule a Meet and Greet

It’s important to ensure you connect well with your agent since you’ll be working closely together. Arrange a meeting, either in person or virtually, to gauge compatibility and discuss your specific needs.

Here are some questions to consider:

- Are they a full-time real estate agent?

- How long have they been active in this market?

- What is their experience with helping buyers?

- What is their preferred method of communication, and how frequently will you hear from them?

Ready to begin your homebuying journey?  Skip the hassle of searching for an agent on your own! Contact Scott and the Smolen Team today and find an expert who will make your homebuying experience smooth and successful.

Qualifying for a mortgage is one of the most crucial steps in the homebuying journey, and it can often seem overwhelming. However, by understanding the four C’s of credit that lenders focus on, you can navigate this process more smoothly and increase your chances of success.

What Are the Four C’s of Credit?

1. Credit: Your history of timely payments.

2. Capacity: Your ability to repay the loan.

3. Capital: Your assets and cash reserves.

4. Collateral: The property you pledge as security.

Different lenders might have varying criteria, but these four factors are universally assessed during the mortgage underwriting process.

Diving Deeper into the Four C’s of Credit

1. Credit

Lenders examine your credit history and score to evaluate your payment habits and overall financial behavior. A strong credit score can significantly influence your loan approval, the amount you can borrow, and the interest rate you receive.

"Before purchasing a home, it's crucial to pay down credit card balances or any existing loans," advises Kevin Tinsley of All Tech Mortgage. "Credit reports can reflect data that's 1-2 months old, so plan ahead to ensure your report shows these accounts as paid off."

Improving your credit score is essential if it's not currently in good shape. Joe Metzler, Senior Loan Officer at Cambria Mortgage, suggests keeping credit card balances below 30% of their limits and paying off balances before statements are issued.

2. Capacity

Capacity refers to your ability to repay the loan, determined by analyzing your income, savings, employment history, and existing debts. Lenders calculate your debt-to-income ratio (DTI) to assess risk, with a lower DTI indicating lower risk.

"Understanding the different types of income and how they are evaluated is crucial," says Vatche Saatdjian, President and CEO of Valley West Mortgage. "Hourly, salary, bonuses, commissions, and self-employment income are all considered differently."

Lenders will review various documents to verify your income, such as W2s, tax returns, and current income statements, and evaluate your recurring debt payments including auto loans, student loans, and credit card payments.

Lisa Behm, Area Sales Manager for First Federal Lakewood, emphasizes the importance of budgeting realistically. "Consider potential increases in costs like taxes and utility bills before committing to a mortgage."

3. Capital

Lenders also look at your savings and investment accounts that can be converted to cash, like stocks or retirement accounts. These cash reserves are important for covering your mortgage payments, down payment, and closing costs.

Sources of capital can include down payment assistance programs, gifts from relatives, and grants. "Liquidity is key during the underwriting process," says Nate Condon from Walkner Condon Financial Advisors. "Keep funds in easily verifiable accounts and avoid moving money around to ensure a smooth process."

4. Collateral

Collateral refers to assets that can be used as security against the loan. In the case of a mortgage, this is the home itself. If you default, the lender can take possession of the property. The value and ease of liquidation of the collateral are critical. Lenders will order a home appraisal to determine the property's value as part of the financing process.

Understanding the Four C’s—Credit, Capacity, Capital, and Collateral—can clarify the mortgage qualification process and better equip you to prepare. By strengthening these areas, you’ll improve your chances of securing a mortgage and getting closer to owning your dream home. Be sure to discuss your financial options with your mortgage lender. If you need a recommendation, reach out to Scott and the Smolen Team!

In the realm of real estate transactions, the once-familiar "settlement statement" has evolved into what is now referred to as a "closing disclosure." However, the older term is still used in some circles, so it is essential to be acquainted with both as you navigate your mortgage loan closing. A settlement statement plays a critical role in providing a comprehensive breakdown of all the closing costs and credits associated with a real estate deal or a refinance. This knowledge empowers buyers to manage their finances effectively. Here is everything you need to know.

What is a Settlement Statement?

A settlement statement is a comprehensive document that outlines all costs owed by or credits due to the homebuyer and seller, or the borrower in the case of a refinance. It also includes key details like the property's purchase price, loan amount, and other financial specifics. The purpose of this document is to inform the buyer (or refinancer) about the amount of money due at the time of closing and to whom these payments are directed. Simultaneously, it informs the seller about their proceeds from the transaction.

Various parties may provide the settlement statement, including mortgage lenders, settlement agents, title companies, or real estate attorneys.

Settlement Statement vs. Closing Disclosure

For those who obtained their mortgages before October 2015, they received a HUD-1 settlement statement (HUD refers to the U.S. Department of Housing and Urban Development). Today, most borrowers receive a document remarkably like the HUD-1, commonly referred to as a closing disclosure, though the older terms may still be informally used.

What changed in October 2015? This is when Congress passed consumer protection laws commonly known as TRID, or "Know Before You Owe." In response, the Consumer Financial Protection Bureau mandated the replacement of HUD-1 with the more straightforward and less confusing closing disclosure. Despite the name change, both documents serve the same purpose: ensuring borrowers have a clear understanding of their financial commitments.

How Does a Settlement Statement Work?

Every real estate transaction necessitates some form of a settlement statement. Residential purchases and sales typically employ the closing disclosure, while the HUD-1 or HUD-1A settlement statement may still be used in certain transactions.

• Closing Disclosure: This five-page document is widely used today and serves as the finalized version of the loan estimate (formerly known as the good faith estimate), which buyers receive when applying for a mortgage. It offers an overview of expected fees and must be provided by your mortgage lender at least three business days before closing. (This three-day rule does not apply to sellers.)

• Settlement Statement: The HUD-1, a somewhat outdated form like the closing disclosure, itemizes costs and credits. However, it is typically delivered at least one day before the closing. The figures on this form can be adjusted, added, or removed at the last minute, with both parties present during the closing. The HUD-1A may still be used in transactions without a seller, such as refinances or reverse mortgages.

Upon receiving your settlement statement, it is vital to review it in comparison to your loan estimate to ensure there are no unexpected surprises. Thoroughly examining this document is crucial to verify the accuracy of all expenses.

Mark Hamrick, Bankrate's senior economic analyst, emphasizes the importance of this diligence: "While homebuyers might tend to focus on the final price of the property they’re buying, their due diligence should extend to disclosures, including those found in settlement statements."

What to Expect on Your Settlement Statement?

A settlement statement provides a comprehensive breakdown of expenses and credits associated with the real estate transaction, to be paid by the homebuyer and seller, or the borrower in a refinance. Common items featured on a settlement statement include:

• Loan amount, interest rate, and loan terms

• Property's contract price

• Allocation of real estate taxes and assessments

• Real estate agent commissions

• Escrow fees

• Lender fees, including those for loan origination, underwriting, and discount points

• Home inspection fee

• Appraisal fee

• Private mortgage insurance premium (if applicable)

• Homeowners insurance premium

• Title administration fees

• Title insurance policy premium

• Notary fee

• Deed preparation and recording fees

• Transfer taxes or conveyance fees

• Homeowners’ association fees (if applicable)

In summary, understanding the settlement statement, whether you encounter the traditional HUD-1 or the modern closing disclosure, is pivotal when engaging in real estate transactions. It allows you to make informed financial decisions and ensures transparency throughout the process.

If your listing expired and your house didn’t sell, it’s natural to feel frustrated and disappointed. As you process these feelings, you’re likely wondering what went wrong and what you should do next.

If you still need to move and want to get your home back on the market, here are some key considerations to help you move forward.

Was It Priced for Today’s Market?

Setting the right price from the start is crucial. While it might be tempting to list your home at a high price, doing so can significantly slow down the selling process. If your house was priced higher than comparable properties, it might have deterred potential buyers, causing it to sit on the market. As Rocket Mortgage explains:

“Buyer interest in your home is highest when it first comes on the market. That’s why it’s so important to start with the right price on day one. . . If you overprice your house, buyers may just raise an eyebrow and move on to the next listing without even coming for a showing. . . It can be easy to think your home is worth more, but try not to let sentimental value color your judgment. Your home’s true value is whatever a buyer is willing to pay for it.”

Was It Easy for Buyers to Tour?

One common mistake when selling a home is overly restricting the days and times when potential buyers can tour it. While it may be inconvenient to accommodate frequent showings, being flexible with your schedule is essential. Minimal access means minimal exposure to buyers. ShowingTime advises:

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

Was It Set Up To Make the Best Impression on Buyers?

If buyers weren’t interested in your house, it’s worth reassessing its presentation. Are there outstanding repairs that might be distracting buyers? Even small issues can give the impression that the home has not been well-maintained. You don’t always need to make significant upgrades. Selective small repairs or touch-ups can make a big difference. Tidying up your landscaping, applying a fresh coat of paint, and decluttering can significantly enhance the appeal of your home. Consider staging the home to help buyers envision themselves living there.

Were You Willing To Negotiate?

If you received offers but were unwilling to negotiate, that could be another reason your home didn’t sell. While you want to get top dollar, it’s also important to be realistic about what your house can command in today’s market. The market still favors sellers, but the supply of homes is increasing, and buyers are dealing with higher mortgage rates. Being open to negotiation can facilitate closing a deal. As Ramsey Solutions explains:

“If you don’t have the money or time to fix home issues, consider offering some other form of incentive to buyers. . . An experienced real estate agent can help you arrange a deal where you and your buyer both come out on top.”

Did You Listen to Your Agent?

If you want expert advice on why your home didn’t sell, rely on a trusted real estate agent. Whether it’s your previous agent or a new one, a great agent will take the time to review what worked and what didn’t, and discuss your next steps. They’ll offer their perspective, including tailored advice and effective strategies for re-listing your house to get it sold. As Better Homes & Gardens advises, your agent should be your go-to resource:

“If you’re frustrated with the timeline of your sale, chat with your real estate agent. Agents want what is best for you and the sale of your home, and having open communication about any frustrations will be key.”

Bottom Line

It’s natural to feel disappointed when your listing expires and your house didn’t sell. Connect with Scott and the Smolen Team today to determine what happened and what changes you should make to get your house back on the market.

At long last, “the time has come” for interest rate cuts. On Friday, August 23rd, Federal Reserve Chair Jerome Powell offered a glimmer of hope to prospective homebuyers and sellers.

Speaking at the Federal Reserve’s annual symposium held in Grand Teton National Park, Jackson Hole, WY, Powell remarked, “We do not seek or welcome further cooling in labor market conditions. The time has come for policy to adjust.”

This marks a significant shift from just last month, when Powell suggested that an interest rate cut from the current 23-year high “could be on the table.”

“From ‘on the table’ at July’s meeting to ‘the time has come’ in today’s Jackson Hole address, Chair Powell also stated that ‘my confidence has grown that inflation is on a sustainable path back to 2%,’” notes Realtor.com® Chief Economist Danielle Hale. “These are clear signals that a Fed rate cut is imminent.”

What to Expect in September

The Fed’s next policy meeting, scheduled for September 17–18, is now highly anticipated, with everyone eager to know how significant this expected rate cut will be.

“My expectation, along with many investors, is that the Fed will make a 25-basis point cut in September, likely the first of several that will follow in late 2024,” Hale explains. “There is also a possibility that the September cut could be as large as 50 basis points.”

The size of the cut will depend on inflation and labor market data released between now and the September meeting. Hale emphasizes that the Fed will continue to rely on this data. “Chair Powell noted that the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” she says.

The Potential Impact on the Real Estate Market

The Fed’s upcoming decisions are poised to have a significant impact on mortgage rates and the broader real estate market. “Since these cuts are widely anticipated, they’ve already contributed to mortgage rates dropping into the mid-6% range, and we could see further easing in the months ahead,” Hale says. “In fact, the Realtor.com 2024 Housing Forecast Update now expects the typical 30-year fixed-rate mortgage to fall into the low 6% range by the end of the year.”

To stay updated on mortgage rates, keep in touch with your lender! If you need a recommendation for a trusted local lender, do not hesitate to reach out to Scott and the Smolen Team.

In today's housing market, many sellers are making a crucial mistake—overpricing their homes. This common error often leads to a property lingering on the market without receiving any offers. When that happens, sellers may be forced to reduce their asking price in hopes of rekindling buyer interest.

Data from Realtor.com indicates that more homeowners are realizing this mistake and resorting to price reductions. If you're planning to sell your home, here's what you need to know to avoid making this costly error. Partnering with a trusted real estate agent is the best way to set the right price from the start. Here's why that matters.

Ignoring Current Market Conditions

Accurate pricing hinges on understanding current market conditions. Basing your asking price on what happened during the pandemic could be a costly misstep. The market has since stabilized, so it's essential to align your price with today's realities.

Real estate agents stay informed about market trends and how they influence your home's pricing strategy.

Basing the Price on Desired Profit Instead of Market Value

Another mistake sellers make is pricing their home based on the profit they want, rather than its actual market value. You might see other homes in your neighborhood selling for high prices and assume yours can too. But are you considering differences in size, condition, and features? For example, that other house might be waterfront or have a finished basement. Bankrate sums it up well:

“Finding the right pricing sweet spot for profit without overpricing requires expertise. A knowledgeable agent understands the fair market value in your area, how much your house is worth, and what you can reasonably expect to get for it in the current market.”

A real estate agent, like Scott Smolen, will conduct a comparative market analysis (CMA) to ensure your home is priced based on similar properties, providing an accurate reflection of its value.

Pricing High to Allow Room for Negotiation

Some sellers intentionally price their homes high to leave room for negotiation, but this strategy can backfire. A high price can deter potential buyers from even considering your property. Instead of creating space for negotiation, you may end up driving buyers away. U.S. News Real Estate puts it this way:

“You want to sell your house for top dollar, but be realistic about its value and how buyers will perceive it. If you’ve overpriced your home, you’ll likely need to lower the price eventually, but by then, the peak period of buyer interest will have passed.”  

Scott can help you set a fair price that attracts buyers and encourages competitive offers.

Bottom Line

Overpricing your home can lead to serious consequences. A knowledgeable real estate agent offers an objective perspective, deep market knowledge, and a strategic approach to pricing. Connect with Scott and the Smolen Team to ensure your home is priced right from the start!

This year has already brought a series of powerful storms. In July, Hurricane Beryl became the earliest Category 5 Atlantic storm on record, and in August, Hurricane Debby wreaked havoc across the Southeast before causing significant damage in the Northeast. According to the National Oceanic and Atmospheric Administration (NOAA), the remainder of the year is expected to be just as active. In their mid-season update, NOAA increased the forecast to 17-24 named storms, with 8-13 likely to become hurricanes. Since hurricane season lasts until November 30, homeowners in the path of these storms could face significant challenges. While flooding is a common issue during hurricanes and often isn’t covered by standard homeowners insurance, another frequent problem is falling trees. But what happens if a tree from your neighbor’s property falls onto your land, causing damage to your home, fence, or car? You might be surprised by the answer.

Who’s Responsible for the Damage?

Liability laws can vary by state, but generally, when a tree falls during a storm, it’s considered an act of nature. This means that in many cases, your neighbor is not financially responsible, even if it was their tree that caused the damage to your property.

In Maryland, for example, the responsibility for removing the fallen tree and repairing the damage typically falls to the owner of the damaged property. However, a homeowner can be held liable if it’s proven that the tree on their property was a known hazard and they neglected to address it. Often, this type of damage is covered by homeowners insurance, so it’s essential to review your policy to understand what’s covered. For instance, if you repeatedly warned your neighbor about a dead tree that posed a threat to your property, and they ignored your concerns, you might be able to hold them accountable. But if a healthy tree, or even a deteriorating tree that neither you nor your neighbor knew was dangerous, falls onto your property, you’ll likely be responsible for handling the aftermath.

Steps to Take When a Neighbor’s Tree Damages Your Property

If a tree falls on your property, whether it originated from your yard or your neighbor’s, your first step should be to contact your homeowners insurance company. They will assess the damage and guide you through the claims process. Before filing a claim, consider the extent of the damage. If the cost of repairs is less than your deductible, it may not be worth filing a claim. However, tree damage can be significant, so in many cases, filing a claim is the right move. If you have evidence that your neighbor was aware of the risk their tree posed, provide this information to your insurance company. They may pursue reimbursement from your neighbor’s insurance.

One important thing to note is that if a neighbor’s tree falls on your property and damages your car, your homeowners insurance may not cover the damage. In this case, you’ll need to file a claim with your auto insurer. If both your home and car are damaged, you may need to file two separate claims. It’s crucial to maintain an emergency savings fund for situations like this, as there may be out-of-pocket costs even if your insurance covers most of the damage. Additionally, familiarize yourself with your insurance policy to be prepared when damage occurs.

By understanding your coverage and knowing the steps to take, you can navigate the aftermath of a fallen tree with confidence.