AVOID THESE TWO BIG MORTGAGE MISTAKES

We all know that searching for and viewing potential homes is the fun part of the home-buying process. The not-so-fun part? The mortgage.

But if you don't pay attention to the details, your mortgage can end up dragging down the enjoyment of your new home and cause some major regrets. 

Here are a few mistakes to avoid to ensure that you love your mortgage terms as much as your hew home.

Don't find your home first: Shopping around for the best mortgage rate should be the first step in the home buying process. You may even want to talk to a mortgage broker a full year before you plan to buy. It'll give you time to get your affairs in order to qualify for the best rate, could save you thousands of dollars in the long run, and you won't feel rushed to accept an unattractive loan because you're worried you'll miss out on your dream home.

Don't forget your real budget: There's often a big difference between what a lender says you can afford and what you can actually afford. Your debt-to-income ratio doesn't include the money you spend on hobbies, or the cost of commuting to work, or maintenance and utility costs. Really sit down and examine your spending before committing to the loan amount the lender is offering. You won't enjoy your home nearly as much if it's eating into your favorite hobbies.

PRIORITY TASKS FOR YOUR MOVE IN

Moving into a new home is an exciting time, and you're probably daydreaming about decor and paint schemes and new furniture. But before you get into the fun stuff, there are some basics you should cover first.

Change the locks

Even if you're promised that new locks have been installed in your home, you can never be too careful. It's worth the money to have the peace of mind that comes with knowing that no one else has the keys to your home. Changing the locks can be a DIY project, or you can call in a locksmith for a little extra money.

Steam clean the carpets

It's good to get a fresh start with your floors before you start decorating. The previous owners may have had pets, young children, or just some plain old clumsiness. Take the time to steam clean the carpets so that your floors are free of stains and allergens. It's pretty easy and affordable to rent a steam cleaner-your local grocery store may have them available.

Call an exterminator

Prior to move-in, you probably haven't spent enough time in the house to get a view of any pests that may be lurking. Call an exterminator to take care of any mice, insects, and other critters that may be hiding in your home.

Clean out the kitchen

If the previous occupants wanted to skip on some of their cleaning duties when they moved out, the kitchen is where they probably cut corners. Wipe down the inside of cabinets, clean out the refrigerator, clean the oven, and clean in the nooks and crannies underneath the appliances.

FIVE MONEY-SAVING GREEN UPGRADES

Going green is great for the environment, but that's not the only benefit. 

When you make green upgrades in your home, it can also lead to some major savings.

Solar panels: The upfront cost is big, but the long-term savings are huge. Solar panels will cost several thousand dollars to install, but ongoing maintenance costs are very low, and a typical system could save you hundreds of dollars per year. You can even sell your surplus electricity.

Wood furnace: Wood-burning furnaces are relatively inexpensive, and though the yearly savings aren't as dramatic (about 10% on heating bills), it adds up over the long run.

Insulation: There's a good chance your insulation isn't very efficient, especially in older homes. Look into installing floor, cavity, wall, and loft insulation to reduce your heating bills.

Rain barrels: Rain barrels are extremely inexpensive, and provide gallons of free water to use when you wash your car or water your garden.

Geothermal system: OK, so the price tag is scary at first. A geothermal system uses the earth's temperature to heat and cool your home, but can cost $30,000 to install. But tax credits allow you to get a lot of that money back, and the energy savings average about $1,900 per year. If you plan to be in your home for a decade or two, it's a great investment.

FROM DECORATING TO STAGING

Once you've decided to put your home on the market, you're looking to sell quickly for the best possible price. 

One tactic that can help sell your home faster is staging. At first, staging may seem like a real estate term that doesn't actually mean anything. Isn't staging just decorating? Well, not exactly…

Appeal to the masses

Your home is likely decorated to your tastes. It could be colorful and eclectic, or rugged and industrial. But when you're staging your home, rather than appealing to a specific decorating sense, you want to furnish your home in a way that appeals to everyone-and more importantly, doesn't turn anyone off who just isn't into your personal style.

Tone down the personal flourishes

Buyers want to be able see themselves in a home and imagine how they'd make it their own. Unfortunately, that means less of your own style as you're preparing for your move. Cut down on family photos, bold artwork, and unusual furniture. Do some major decluttering so the buyer can see all the space and storage opportunities. It may be sad to start removing the items that make your house a home, but it's an important part of the process.

Mass appeal doesn't mean “boring"

Your staged home can still be colorful, just stay away from extremes. If you paint, stick to whites, grays, or neutrals. Add flourishes of color with window treatments or accent furniture, but try to choose items that will appeal to both genders.

Call a pro

There are likely several staging companies in your area. If you need a recommendation, reach out to your trusted real estate professional.

SAVE ON LANDSCAPE MAINTENANCE

Keep your lawn and yard pristine without bleeding the green.

To stay green, your lawn requires a lot of water and fertilizer. 

Reduce these costs by: 

✓ watering your lawn only one to two inches per week; 

✓ keeping mower blades sharp and clean to trim grass for maximum moisture retention; 

✓ mowing your lawn to no lower than two to three inches to reduce root exposure and water evaporation; 

✓ investing in a self-mulching lawn mower and letting the cuttings fertilize the lawn; and reducing the size of your lawn or removing it altogether — less lawn does not mean a less vibrant yard!

Make your yard green and cost-effective by planting:

✓ drought-resistant plants;

✓ seeds or young plants, as they are cheaper than buying fully grown plants; and

✓ trees and plants native to your area to eliminate the need for extra watering.

Balance out your yard beautification costs by planting fruit trees and a vegetable garden. Growing food reduces grocery costs while adding color and greenery.

Remember, a beautiful, low-maintenance yard attracts buyers!

MY PHILOSOPHY ON COUNSELING REAL ESTATE CLIENTS

A lot of people in real estate describe themselves as “trusted advisors,” but what does that really mean? 

Here’s my take on how to best serve your clients as their trusted advisor.

It’s quite common to hear the phrase “your trusted advisor” in real estate. But what does it mean to be a trusted advisor? What are the driving philosophies behind providing clients with the highest level of service? I believe there’s more to becoming a trusted advisor than meeting basic ethical and professional obligations. 

If someone were to ask me “How do I become a trusted advisor?” I’d offer these five suggestions as a start:

1. Empathize with people. Imagine, as you’re listening to them, that they’re not describing their problems, questions, and dreams, but they’re describing your own. Imagine yourself as the star of the movie of their life and be aware of how you would feel.

2. Be a part of the solution, even if you cannot solve the problem. Can you solve everybody’s problems? Of course not. But you might be able to help them to see a pathway through their problem. This might be in the form of questions that help them think something through. It could be a referral to someone who can help them with their problem. It could even be as simple as a list of good articles which deal with the problematic topic.

3. Aim to counsel, don’t aim to please. An advisor is a true ally. A “yes person” is untrustworthy. The truth is not always pretty and it is sometimes hard to accept. Risk short term rejection over a tough truth in order to grow a long term relationship.  

4. Teach others how to teach themselves. (Don’t just give answers.) The more you can increase a client’s capacity to empower themselves, the more valuable your standing will be in their eyes.  Think about it: Do you ever forget your mentors?

5. Give without anticipating return. If you’re running a little cost/benefit analysis in your head for every interaction, you’re not giving freely. Hesitancy, a stinginess of spirit, and an unwillingness to risk without reward will always cost you more than you think.      

If you are a real estate professional, take these suggestions to heart. They'll help you be a better "advisor" for your clients. And if you are not a real estate professional but could use some real estate guidance, I encourage you to speak with a real estate agent today. They would love to show you how they practice these concepts with every client they serve.

FIVE CRITERIA FOR PRICING A HOME

When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales.

There’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area.

Here are five criteria to look for in a sales comparison:

1. Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better.

2. Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available.

3. Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics.

4. Features and upgrades: Remodeled bathrooms and kitchens can raise a home’s price, and so can less flashy upgrades like a new roof or HVAC system. Be sure to look for similar bells and whistles.

5. Sale types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons.