Living • October 20, 2022

What is Gothic Revival Architecture?

by Elizabeth Dolton

If you’ve ever seen a home like the one in the photo above, certain words like “romantic” or “medieval” may have come to mind. The architectural style shown here is Gothic Revival, a unique branch of design that grew popular in the mid-19^th century. Though it fell out of fashion shortly thereafter, this signature architectural style has left a lasting impression on home design.

What is Gothic Revival Architecture?

The most defining characteristics of Gothic Revival architecture are its pointed arches, steeply pitched roofs, intricate wooden trim, and its preference for vertical elements. As opposed to the horizontal nature of the rambler home style, Gothic Revival architecture reaches skyward. Gothic Revival also borrows elements of castles, such as towers with parapets and/or spires.

The architectural style eventually took on other variants. Victorian Gothic borrowed from elements of the Victorian era, and the North American adaptation Carpenter Gothic used a Gothic influence as the basis for a new style of home design popularized in the late 19^th century.

A light blue Gothic Revival home with brick trim on top of a hill on a sunny day. Corners of the home have exposed white-washed brick while the walls are light blue stucco. The windows have ornate white trim and has a double front door. The home has three sections, with the middle column the tallest, the right side is slightly protruding out and the left is tucked back behind the center tower, each has a roof with inverted gothic arches.

Image Source: Getty Images – Image Credit: glasslanguage

A low angle shot of a three-story brick Gothic Revival home on a corner lot with a colorful garden. The corner of the house has a round tower with a pointed roof, calling back to rounded tower castles, with a rounded wrap-around porch underneath.

Image Source: Getty Images – Image Credit: fotoVoyager

Although Gothic Revival most naturally translated to larger buildings such as churches, mansions, prisons, and schools, the Gothic Carpenter style maintained many of the key characteristics that define the unique style with slight twists to accommodate for residential home life.

Beyond the vertical visuals, steep roofs, and arched doorways, residential gothic architecture also incorporated elements like board and batten wood siding, roof gables, ornate crown molding, and slim porch columns. Gothic-style homes are easily identifiable and much rarer than ubiquitous home styles such as craftsman, cottage, and mid-century modern.

To learn more about the different architectural styles, visit our Architectural Styles page.

Featured Image Source: Getty Images – Image Credit: akaplummer

Living • October 6, 2022

Designing Your Rental To Feel Like Home

by Elizabeth Dolton

When you own your living space, it’s natural to feel attached to every square inch. But for renters, creating that sense of ownership is a unique challenge. Whatever limitations you face as a renter in how you’re able to make alterations, it’s no less important to your home life for your space to convey a sense of ownership and self. To make a rental unit feel a bit more like home, we collected a few ways to imbue your abode with your own spirit, without risking your security deposit.

Designing Your Rental to Feel Like Home

Storage

Sufficient storage space is a common shortcoming of rentals, leaving renters in a position where they either need to invest in a public storage space or get creative at home. But even getting creative at home can be tough, since most rental properties have limitations on what renovations and customizations renters are able to make, especially if the property is governed by a Homeowners Association (HOA).

So, what’s a renter to do? Add some simple, no-to-low damage shelves to make room for décor accents, accessories, and house plants that reinforce your design choices.

Shop around for freestanding bookshelves, baskets, or use under-the-bed storage bins to free up additional space and declutter the areas of your home where items are stacking up. Search for furniture that doubles as storage, like an open-top ottoman or a side table with a drawer or shelf.

Blinds and Curtains

How you decorate your windows can greatly personalize your rental. Consider swapping out your blinds for curtains to add a splash of color and a more regal aesthetic to your living space. But don’t be too quick to throw away your blinds—you may not get your entire security deposit back! Before making these kinds of changes, or adding hardware like curtain rods, be sure to ask your landlord for permission.

A young man relaxes in the living room of his rental looking out his window with beige curtains and house plants around him

Image Source: Getty Images – Image Credit: Adene Sanchez

Accessorize

When decorating, it’s the smaller things like pillows, throws, candles, and books that will really tie your home together and make it feel unique to you. If you’re able to change your light fixtures, it can make a world of difference. Find the right lighting by thinking about what temperature of light appeals to you, and whether you want accent, task, or ambient lighting.

Gallery Wall

Hanging up your art collection with hooks and nails can damage the walls, so be sure to use a stud finder to make the process of creating a gallery wall easier. And besides, when you’re preparing to move out, a few hanging holes from nails and screws is nothing that a little spackling paste, a putty knife, some sandpaper, and a new coat of paint can’t fix.

Again, ask your landlord before you add any holes in the home. When you’re touring, ask the landlord to keep the existing holes in the walls so you can use them, or ask if you can get the paint color information so you can patch and make touch ups yourself. Many landlords keep matching wall and trim paint on hand for such instances.

Image Source: Getty Images – Image Credit: KatarzynaBialasiewicz

Carpet and Flooring

If your flooring is worn, cracked, or damaged in any way, there’s likely little you can do to replace it other than documenting the damage and running it up the flagpole. Fortunately, you have carte blanche to decorate with carpeting as you please. Carpets also serve as a protective layer to avoid further damage to your floors during your tenancy.

Bolder rug materials like shag, tufted cotton, and wool will automatically make your space cozier. If your choice in carpeting is more driven by style, consider vibrant colors, bold patterns, or geometric area rugs to spice things up.

For more tips on home design, read our blog post on Colorful Modern Design Trends for Your Home.

Originally posted by Windemere Staff

Featured Image Source: Getty Images – Image Credit: Capuski

Selling • September 19, 2022

Moving Checklist: A Step-by-Step Guide to the Moving Process

by Elizabeth Dolton

Once you and your agent work through the process of selling your home, there comes a point when it’s time to switch gears and get ready to move. It can be difficult to juggle the various steps of the moving process, especially if you’re Buying and Selling a Home at the Same Time. Using a moving checklist will help you stay organized and on schedule throughout your moving timeline. Included is a comprehensive checklist below of all the steps you’ll need to complete to ensure a smooth, successful move. This list is also available as an interactive web page and downloadable PDF here: Moving Checklist

Twelve Weeks Before:

Get estimates from professional movers or truck rental companies if needed.
Once you’ve selected a mover, discuss insurance, packing, loading and delivery, and the claims procedure.

Six to Eight Weeks Before:

Use up things that may be difficult to move, such as frozen food.
Sort through your possessions. Decide what you want to keep, what you want to sell, and what you wish to donate to charity.
Record serial numbers on electronic equipment, take photos (or video) of all your belongings and create an inventory list.
If you are moving yourself, use your inventory list to determine how many boxes you will need. Stock up on the items you’ll need from our “Moving Essentials” list.
Obtain a change of address packet from the post office and send it to creditors, magazine subscription offices, and catalog vendors.
Discuss tax-deductible moving expenses with your accountant and begin keeping accurate records.
If you’re moving to a new community, contact the Chamber of Commerce and school district and request information about services.
Make reservations with airlines, hotels, and car rental agencies, if needed.
Begin packing nonessential items.

Two to Four Weeks Before:

Arrange for storage, if needed.
If you have items you don’t want to pack and move, hold a yard sale.
Update the address listed on your car registration, license, and insurance.
Transfer your bank accounts and safe-deposit box items to new branch locations if needed. Cancel or redirect any direct deposit or automatic payments from your accounts.
Make special arrangements to move your pets and consult your veterinarian about ways to make travel comfortable for them.
Have your car checked and serviced if you’ll need to drive it a long distance.
Change your utilities, including phone, power, and water, from your old address to your new address.

Week of Moving Day:

Defrost your refrigerator and freezer.
Have movers pack your belongings.
Label each box with the contents and the room where you want it to be delivered.
If you’re using a moving company, arrange to pay for their services in full, or the remainder of what you owe, upon delivery.
Set aside legal documents and valuables that you do not want packed.
Pack clothing and toiletries, along with extra clothes in case the moving company is delayed.
Give your travel itinerary to a close friend or relative so they can reach you as needed.
Pack a first-day box with items that you’ll want accessible before other boxes are unpacked. See our list of suggested items on the right and add any others you’ll want to include.

Moving Day:

Old Home

Pick up the truck as early as possible if you are moving yourself.
Make a list of every item and box loaded on the truck.
Let the mover know how to reach you.
Double-check your closets, cupboards, attic, basement, yard, and garage for any left-behind items.

New Home

Be on hand at the new home to answer questions and give instructions to the mover.
Check off boxes and items as they come off the truck.
Install new locks.
Confirm that the utilities have been turned on and are ready for use.
Unpack your first-day box.
Unpack your children’s toys and find a safe place for them to play.
Examine your goods for damage.

Our Moving Checklist page has all the information above, plus helpful lists for Moving Essentials and which items to pack in your First-Day Box available as a downloadable PDF.

Originally Posted by Sandy Dodge.

Buying • Selling • September 6, 2022

Making a Contingent Offer: Common Real Estate Contingencies

by Elizabeth Dolton

Imagine a home-buying scenario where you make an offer, the seller immediately accepts, and the two of you move through closing without any hiccups until you have keys in hand. It’s possible, but a more likely home buying experience is marked by negotiation, counteroffers, and a back-and-forth dialogue between both parties to reach a deal. And in some cases, the deal can fall through.

Contingencies protect buyers and sellers against these natural characteristics of the home buying process and any problems that may arise before a home sale is finalized. They help to shape a buyer’s offer and can be used strategically to make it more appealing. Whether you’re a first-time home buyer or you’ve bought before, you should be aware of common real estate contingencies and the role they play in making an offer on a home.

Making a Contingent Offer on a Home

After you and the seller agree on the price of a home, both parties have certain duties to finalize the transaction. Buyers are responsible for securing financing, having the home inspected, and getting the property appraised. Sellers are responsible for prioritizing the offer on the table and opening their doors to the home inspector when the time comes. The agreed-upon contingencies included in the contract protect the buyer and seller against any issues that may arise during this time.

Contingencies present a spectrum of options to home buyers, allowing them to walk away from a real estate transaction with their earnest money intact or renegotiate the contract. While their inclusion offers protection and negotiating leverage, sometimes their exclusion can be just as effective.

In a seller’s market, competition amongst buyers is high. Escalation clauses, bidding wars, and all-cash offers become commonplace as potential home buyers compete for a limited number of listings. To sweeten their offers in such market conditions, buyers will typically waive their contingencies. This presents added risk due to a lack of protection, but with so much competition around them, buyers are left with no choice but to maximize their offer’s appeal.

Man and a woman shaking hands with their real estate agent in the kitchen of their new home as they sign paperwork

Image Source: Getty Images – Image Credit: andresr

Common Real Estate Contingencies

Home Inspection Contingency

After you’ve made an offer, you’ll have a home inspector thoroughly examine the home before the deal is final. If they discover issues with the property, this contingency allows you and your agent to present the seller with a new offer that accounts for the home’s lessened condition, or to cancel the contract entirely.

Financing Contingency

Also known as a “mortgage contingency,” a financing contingency gives the buyer a specified period of time to secure adequate financing to purchase the home. Even if you are pre-approved for your mortgage, you may not be able to obtain the right loan for the home. If you are unable to finance the purchase, this contingency allows you to back out of the contract and recover your earnest money, and the seller can re-list the home.

Appraisal Contingency

An appraisal contingency states that the home must appraise for, at minimum, the sales price. It allows you to walk away from the deal if the property’s appraised value is lower than the sales price, and typically guarantees that your earnest money will be returned.

Home Sale Contingency

If you’re buying a new home while selling your current one, you may want to include a home sale contingency in your offer. This contingency specifies the date by which you’ll need to sell your current home in order to move forward with your offer. If you don’t sell your home by the specified date, the contract is terminated. Home sale contingencies are financially appealing in that they allow buyers to use the proceeds from their home sale to fund their new home purchase. However, these contingencies force sellers to wait until the buyer’s current home sells, which means they likely won’t accept such offers in competitive markets.

Title Contingency

Before the sale of a home goes final, a search will be performed to ensure that any liens or judgements made against the property have been resolved. A title contingency allows you to raise any issues you may have with the title status of the property and stipulates that the seller must clear these issues up before the transfer of title can be complete. If an unpaid lien or unpaid taxes turn up in the home’s title search, this contingency also allows you to back out of the deal and look for another home.

Originally Posted by Sandy Dodge.

Buying • Living • August 4, 2022

Understanding the Value of Your Home: Market Value vs. Assessed Value and More

by Elizabeth Dolton

The math of a home sale is relatively straightforward. Sellers list their home at a certain price, a buyer makes an offer, and eventually the two parties reach a final, agreed-upon price. However, between these two points in the selling process, there are several other figures that go into to setting a home’s value that you should be aware of. Your real estate agent will be your best resource in interpreting the different values associated with your home and what they mean as you prepare to sell.

Understanding the Value of Your Home

Listed Price (Asking Price)

Also known as an asking price, the listing price of a home is the price at which a seller lists their property when it goes on the market. The listing price is a gross price, meaning the costs associated with selling the home are not included. A real estate agent’s Comparative Market Analysis (CMA) will accurately set your home’s listing price, accounting for the various factors that influence home prices including location, condition, seasonality, local market conditions, and more.

The listing price is a starting point for negotiations with buyers. You may receive an offer that matches your asking price, but it’s common for buyers to make offers at other price points. You can either accept, reject, or make a counteroffer in response until you and the buyer reach an agreement.

Whether you’re selling in a buyer’s market or a seller’s market may determine you and your agent’s approach to the listing price of your home. There may be certain pricing tactics you can employ to either drive buyer attention or increase competition, but if your home’s listing price strays too far from its market value (see below), it could stay on the market for longer than you expected.

Market Value

As a seller, you’re interested in what buyers are willing to pay for your home. By taking into account a home’s condition, size, curb appeal, and features, as well as local market conditions and what comparable homes are selling for, a home’s market value reflects the price buyers will pay for a property.

Man sitting at his computer at home talks to his real estate agent on the phone

Image Source: Getty Images – Image Credit: damircudic

Appraised Value

A home’s appraised value is determined by a professional appraiser to ensure that the lender is loaning the correct amount of money for the home. Appraisers assess the home’s layout and features, square footage, gross living area (GLA), overall condition inside and out, home updates and remodels, and more. If the appraised value comes in too low or too high, the buyer and seller must renegotiate for the deal to go through. In competitive markets, buyers may include an appraisal gap guarantee in their offer, which states that the buyer will cover the difference between the price of the home and the appraised value.

Sale Price (Purchase Price)

Also known as the purchase price, your home’s sale price is what it ultimately ends up selling for. Once you and the buyer have reached an agreement on the terms of the transaction, the buyer will have the home inspected and final negotiations may occur based on the findings of the inspection. Familiarize yourself with the Common Real Estate Contingencies buyers may include in their offer and what they mean when selling your home.

Net Proceeds

So, how much do you actually make on the sale of your home? After subtracting the total costs of selling from your home’s sale price, you’ll arrive at your net proceeds. This is the amount you walk away with from the transaction.

Assessed Value

Your agent’s CMA is a reliable method of determining your home’s value for its eventual sale, but its assessed value is used for taxation purposes. Employed by local municipal or county entities, an assessor will conduct a review of your property to determine its assessed value. The assessor’s findings are passed to local tax officials, who use that number to calculate the home’s property taxes.

Originally Posted by Sandy Dodge

Living • Remodeling • Selling • July 29, 2022

High ROI Remodeling Projects to Increase Home Value

by Elizabeth Dolton

This blog post contains excerpts of the “Remodeling 2022 Cost vs. Value Report” (costvsvalue.com).¹

As you prepare to sell your home, one of the major considerations you may face is whether to remodel, and if so, how to allocate your remodeling budget. Remodeling can help differentiate your home from competing listings in your area, but this competitive advantage comes at a price.

The following information provides insight on which remodeling projects deliver high ROI. To maximize the value of your remodel, talk to your agent about what buyers in your area are looking for and align your efforts accordingly.

High ROI Remodeling Projects to Increase Home Value

It’s no secret that buyers want to see a home with curb appeal and attractive interior spaces. But as a seller, you’ll only have so much budget to work with and you want to get the most return on your investment. As laid out below, here are the five highest ROI remodeling projects nationwide as found in the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com).¹

Remodeling Project	Cost of Remodeling Project (2022)	Resale Value of Remodeling Project (2022)	ROI
Garage Door Replacement	$4,041	$3,769	93.3%
Manufactured Stone Veneer	$11,066	$10,109	91.4%
Minor Kitchen Remodel (Midrange)	$28,279	$20,125	71.2%
Siding Replacement (Fiber – Cement)	$22,093	$15,090	68.3%
Window Replacement (Vinyl)	$20,482	$13,822	67.5%

This data shows that for a given remodeling project a higher expenditure doesn’t necessarily equate to higher ROI. It’s interesting to note that only one indoor project—the minor kitchen remodel—placed in the Cost vs. Value Report’s top five.

Four of the Cost vs. Value Report’s bottom six entries are upscale remodeling projects, all with roughly a 50% average return on investment. The conclusion to be drawn here is that remodels of this magnitude are expensive and should be considered carefully before you greenlight them. The upside to these projects, though, is that they have a much higher resale value than a simple fresh coat of paint or a change in décor. If you and your agent identify a logical upscale remodel with serious resale potential whose costs you can handle, it can help you get the best price for your home.

So, does this mean you should replace your garage door before selling your home bar none? Not necessarily. Again, your remodeling priority list should target the areas of your home that need attention while aligning with local buyer interest. Your agent can provide guidance on what competing listings in your area are offering and refer you to trusted remodeling contractors in your area.

Remodeled contemporary kitchen with white cabinets and hardwood floors

Image Source: Getty Images – Image Credit: YinYang

Budget-Friendly ROI Home Projects

Though smaller scale home makeovers don’t have the value-adding power of larger remodeling projects, they can still make a difference when selling your home.

Instead of an upscale kitchen remodel, you can focus more on making minor improvements in several areas. For example, repainting or refinishing your cabinets, swapping out your drawer pulls and hardware, and installing new appliances can make your kitchen feel brand new with a smaller budget. When remodeling your bathroom, tasks like refinishing your tub, installing new lighting, and a new backsplash can make a strong impression on buyers.

Originally Posted by Sandy Dodge

© 2022 Zonda Media, a Delaware Corporation. Complete data from the Remodeling 2022 Cost vs. Value Report can be downloaded free at costvsvalue.com.

Market Updates • July 27, 2022

Landscape for Mortgage Rates and Inflation in 2022

by Elizabeth Dolton

The Landscape for Mortgage Rates and Inflation in 2022

Buying • July 25, 2022

The Difference Between a Real Estate Agent and a Mortgage Broker

by Elizabeth Dolton

Throughout the course of buying a home, you’ll work with a variety of professionals, all with specific training to help you through each stage of the process. With such a cast of specialists around you, it’s helpful to know everyone’s responsibilities and which questions to ask whom. One important distinction to be made is the difference between your real estate agent and your mortgage broker. The following information is a guide to understanding where they differ and how each of them helps you to buy a home.

Real Estate Agent vs. Mortgage Broker

Both real estate agents and mortgage brokers are licensed professionals who play a pivotal role in the home buying process by bringing parties together to get a deal done. However, that’s about where the similarities end.

Real Estate Agent

Your real estate agent will represent you throughout the buying process. Their access to the Multiple Listing Service (MLS) allows them to search the widest network of available homes to find the ones that match your budget and criteria. They’ll also receive alerts on open houses and are usually the first to know when new listings hit the market.

Once you’ve identified a home you’d like to pursue, they’ll assist you in putting together your offer, negotiating with the listing agent representing the seller, and guide you through the counteroffer process (should there be one). Once the seller accepts your offer, your agent will help you negotiate any final repair requests found in the home inspection and assist you through closing until you’ve received the keys to your new home.

The point is: your agent will be with you throughout your home buying journey, from start to finish. They are an invaluable resource for local market knowledge and real estate expertise. Though they will not execute the financial aspects of a home purchase for you, (that’s where your mortgage broker comes in), they can recommend trusted lenders with whom you can apply for and secure a home loan.

Mortgage Broker

Mortgage brokers work on the financial side of a real estate transaction, representing buyers to find them favorable mortgage terms when shopping for a home loan. They connect borrowers to lenders by researching the various fees and rates associated with obtaining a mortgage, accessing the buyer’s financial creditworthiness, and coordinating paperwork. Mortgage brokers are not responsible for loaning any money. Once they’ve found the right lender and loan product for their client, they hand the baton to the lender, who will then disburse the funds at the appropriate time.

Working with a mortgage broker can save you time and money. In some cases, they may be able to get the lender to waive certain fees and are experts at finding the best deal for their clients among a vast array of loans and lenders. Mortgage brokers are instrumental in getting your financing for your home purchase secured and provide guidance on which loan products may work best for you.

For more on the financial aspects of a home purchase, read the following:

Two women discussing the terms of a mortgage application

Image Source: Getty Images – Image Credit: kate_sept2004

Questions to Ask Your Real Estate Agent and Mortgage Broker

Now that you know a bit more about the respective responsibilities of real estate agents and mortgage brokers, here are a few common questions to ask when conducting interviews:

Real Estate Agent	Mortgage Broker
How do you help buyers to make their offer stand out?	What is the required down payment for this loan?
Which designations and/or certifications do you have?	What’s the difference between fixed-rate and adjustable-rate mortgages?
How many clients are you working with currently?	Which costs are attached to this loan?
What is the best way to contact you?	How high does my credit score need to be?
How long have you been an agent in the local market?	What is the interest rate for this loan?
Do you represent both buyers and sellers?	What’s the difference between pre-qualification and pre-approval?
Do you have recommendations for mortgage brokers, home inspectors, etc.?	Is there a prepayment penalty?

Buying • July 18, 2022

What Happens After Making on Offer on a House?

by Elizabeth Dolton

Making an offer on a house feels like a reason to celebrate. You’ve applied for financing, worked with your agent to search for available listings, put in time attending open houses, and have found the place you’re ready to call home. However, celebrating at this stage in the buying process could leave you heartbroken if your offer isn’t accepted.

So, what happens after you make an offer on a house? Revealing what goes on behind the curtain in this critical stage of the buying process will help you understand what to expect next. First, let’s take a look at the three ways a seller can respond to your offer.

What Happens After Making an Offer on a House?

The seller rejects your offer:

If a seller rejects your offer, your agent may be able to relay information from the listing agent as to why it was insufficient. This can serve as a learning opportunity for the next time you prepare an offer.

The seller makes a counteroffer:

Counteroffers can make buying a home feel like a chess match. This is an indication that your offer has piqued the seller’s interest. Once you receive a counteroffer, it’s a matter of ironing out the finer details to reach a deal. Sellers will typically request alterations like a higher price, a modification to your contingencies, or an adjustment of closing dates.

You can accept or reject the counteroffer or come back with a counteroffer of your own, which may continue for multiple rounds until the two parties reach an agreement. Prepare for counteroffers ahead of time with your agent by discussing your price limit, how much you’re willing to budge on your contingencies, your flexibility around closing dates, etc.

The seller accepts your offer:

The smoothest result after submitting your offer is the seller accepting it, but that doesn’t mean you’ve crossed the finish line yet. Once the seller formally accepts your offer, you’ll be “under contract,” meaning both parties have agreed to move forward with the deal. Before closing, any contingencies attached to the offer must be met.

This explains why you’ll occasionally see properties listed as “under contract.” It means the seller has accepted an offer and there’s a good chance the deal will go through, but because the sale is not yet final, the property is technically not off the table. Other interested buyers will make backup offers in case the first offer falls through.

Two clients discuss their offer with their real estate agent.

Image Source: Getty Images – Image Credit: Ridofranz

After your offer has been accepted, you’re officially in the homestretch of the buying process. Once the purchase agreement is signed, it becomes legally binding. Backing out of a real estate transaction has varying consequences, depending on the timing of the withdrawal and its level of compliance with the attached contingencies. Learn more here:

What Happens When a Buyer Backs Out of a Real Estate Transaction?

If you intend to move forward with your purchase, finalizing the deal is a matter of completing the following steps before you can claim your new home:

The Home Buying Process: Closing

Next, you’ll deposit your earnest money in an escrow account. This deposit of funds lets the seller know you’re serious about closing on the home. In return, the seller agrees to take the home off the market. When the sale closes, the money goes toward the down payment or closing costs.
The timeline for inspections during the closing process vary state to state. Getting the home inspected allows you to ask the seller that certain repairs be made, request seller concessions, and renegotiate your offer. If you included an inspection contingency in your contract, you could walk away from the deal with your earnest money if you decide the property’s issues are too much to handle.
Contact your mortgage lender to relay the final details of the purchase so you can go about securing financing. Getting pre-approved early on helps to streamline this part of the closing process.
A title search will generate a report for you and your lender detailing the history of the home you’re buying to ensure there are no legal barriers against purchasing it.
Now you’re ready to close! Several legal documents are prepared, leading to the transfer of ownership from seller to buyer. You’ll also pay closing costs at this time. Once closing is finalized and the funds in escrow have been distributed, the home is yours!

Originally posted by Sandy Dodge

Selling • June 26, 2022

Should You Refinacnce or Sell Your Home?

by Elizabeth Dolton

Homeowners can often reach a financial fork in the road when they must decide to either refinance their existing mortgage or sell their home. Each route has its respective advantages depending on your financial health, the mortgage rate market, and the future needs of your household.

Refinancing vs. Selling

When working to ease the financial burden of your existing mortgage, you have two options: refinance or sell. Refinancing your home allows you to renegotiate the terms of your loan and lower your monthly mortgage payment, while selling has the potential to put enough cash in your pocket to pay off your mortgage entirely. So, how do you decide between the two? Understanding a bit more about each option can help you determine which is best for you.

Refinancing Your Home

There are a few reasons why homeowners will typically refinance their mortgage, the most common of which being falling interest rates. Lower interest rates, after a reassessment of your mortgage, equate to lower monthly mortgage payments and significant savings over the life of the loan. If your finances have improved since you initially secured your mortgage—for example, your debt-to-income ratio has improved, or you’ve bumped up your credit score—you may be able to lock in a better rate with your lender.

Refinancing your home could also put cash in your pocket. “Cash-out refinancing” allows you to accept a mortgage for more than your principal balance and use the extra money at your discretion. Typically, homeowners will use such funds for large expenses, such as a major renovation or home improvement project.

Homeowners with Adjustable-Rate Mortgages (ARMs) will often refinance and switch to a Fixed-Rate Mortgage due to fluctuations in interest rates, locking in an established rate for the remainder of the loan term.

Refinancing in order to change the length of the loan can be beneficial as well. By switching from a 30-year mortgage to a 15-year mortgage, you could save a considerable amount of money on interest over the life of the loan. If you’re looking to lower your monthly mortgage payment, you could lengthen the loan term. For example, if you’ve been paying off your 30-year mortgage for ten years but are struggling to keep up, refinancing could lower your monthly payment. However, doing so means you’ll be paying for an additional ten years’ worth of interest.

Keep in mind that refinancing your home involves getting a new mortgage, so you’ll have to go through the qualification process again. Assess your financial health and equity before you apply. Once you’re ready to move forward, your Windermere agent can recommend a few trusted lenders or mortgage brokers to provide you with a quote.

A woman does paperwork on her laptop at home.

Image Source: Getty Images – Image Credit: nortonsrx

Selling Your Home

Alternatively, you can sell your home. Your agent will conduct a Comparative Market Analysis (CMA) to determine the value of your home, accounting for the various factors that influence home prices including seasonality, location, market conditions, and your home’s features.

Although you stand to receive a lump sum of cash, selling your home comes with its own set of costs. Paying for repairs, home inspections, staging expenses, agent commissions, not to mention buying or renting your next home. This can add up, so it’s important to budget properly. Selling your home also means you’ll be uprooting the life you and your household have established there, so it’s important to have a plan for your next steps before the “For Sale” sign goes in the ground.

Originally posted by Sandy Dodge