Expensive Items New Homeowners Buy

Expensive Items New Homeowners Buy

Furniture, appliances, and remodeling projects are among the biggest expenses for new homeowners, who spend an average of $10,600 in the first year of home ownership, according to a recent analysis by the National Association of Home Builders. New owners spend an average of $3,778 on furnishings alone, according to NAHB’s analysis. Here are a few common expenditures recent home buyers made:

• Living room chairs and tables: $687
• Dining room and kitchen furniture: $345
• Window coverings: $215
• Sofas: $700
• Property alterations and repairs (particularly outdoor additions and alterations such as a new driveway, walkway, or fence): $3,729
• Appliances (particularly washers and dryers, lawnmowers and other yard equipment, and computer hardware and systems): $3,094

“The high level of spending by new home buyers may seem surprising—considering that many new homes come with installed appliances—but suggests that these purchases are nevertheless more frequent among these households,” the NAHB notes on its blog, Eye on Housing. A survey conducted by Home Innovation Research Labs shows that two-thirds of new homes built in 2015 came with no washer or dryer; 36 percent had no refrigerators. Most new homes, however, did come with cooking stoves, ranges, and ovens.

Source: “What Do Home Buyers Buy After Moving,” National Association of Home Builders’ Eye on Housing blog (July 13, 2017)

Faulty Solar Installs Cause Leaky Roofs

Faulty Solar Installs Cause Leaky Roofs

Rooftop solar power installations are booming, says Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. The panels may have a more affordable price tag than in previous years, but the installations are coming with another price: leaky roofs.

The Solar Energy Industries Association says many homeowners are not using professional roofers to install their solar panels and that’s causing growing reports of “messed-up and screwed-up” roofs.

The solar industry “has adopted a number of best practices to maximize the durability of roof penetrations,” says Barry Cinnamon, who hosts a renewable energy podcast and is the former owner of Akeena Solar. “But these practices are not always followed, resulting in roof leaks and potential hazards from loosened solar panels. If these leaks happen, it’s usually a roofer who is called in to repair the damage.”

While installing, contractors might drag the heavy panels across the roof and ultimately damage it. “Dropped tools, panels getting dragged across the roof’s surface, or other negligent use of the roof’s surface can lead to leaks and holes,” writes Lennie Moreno, founder and CEO of Sofdesk, a web app provider for solar and roofing companies. “It could take years, but a careless installation of solar panels could end up resulting in huge repair bills that could have easily been avoided.”

Aaron Nitzkin, CEO of Solar Roof Dynamics, says that one rainstorm in California last year caused as many as 40 percent of solar-supporting roofs to leak.

“When you’re growing really fast and people have minimal roofing experience, they don’t know what they’re doing,” Nitzkin says. “In a drought you can get away with it, but when it starts to rain we see leaks.”

Another common problem Nitzkin sees is solar panels being installed on roofs that are near the end of their lifetime. Homeowners then have to pay $3,000 to $5,000 to have the solar panels removed so the roof can be replaced.

Source: “Solar Installs Leading to ‘Screwed Up’ Roofs,” Replacement Contractor (July 5, 2017)

Common Home Buyer Slip-Ups

Common Home Buyer Slip-Ups

Real estate professionals see a lot of dumb reasons why home buyers ultimately end up losing out on a deal. Practitioners recently shared some of the more common mistakes with realtor.com®, including ways to correct the situation:

1. Shopping outside their price range.

“It sounds obvious, but some home buyers just have trouble sticking to a budget,” says Benny Kang, a real estate professional in Irvine, Calif. Shopping online may increase the temptation to bump up the price range. One way to avoid this situation is to encourage your buyers to get preapproved for a loan so they know what they can truly afford and stay within their limits.

2. Submitting lowball offers in a hot market.

“If you’re in a seller’s market, making a crazy lowball offer can piss off the seller,” says Kang. Buyers would be smart to offer full price when homes are priced well. Help buyers understand how a comparative market analysis can offer insight into pricing.

3. Making a big purchase while in escrow.

Buyers often don’t realize they will need to delay big purchases and opening new credit lines while in the process of buying a home. “Even buying a fridge can throw off your credit or debt-to-income ratio,” says Kathy Conway, a Philadelphia real estate professional. If a big purchase is made, the mortgage lender’s underwriter will need to re-evaluate the buyer’s finances and recheck her credit report before closing to ensure the buyer still qualifies for the mortgage, so be sure to warn buyers when they’re approaching this period.

4. Forgetting to budget closing costs.

Buyers don’t just need money for the down payment. There are a lot of extra fees at settlement, too. Buyers can receive an estimate from their mortgage lender of what the closing costs will be before even making an offer on a property. Make sure they review that information carefully. Closing costs can vary drastically but typically cost 2 to 7 percent of the home’s purchase price.

Source: “8 Dumb Reasons People Can’t Buy a Home,” realtor.com® (July 11, 2017)

Ways to Make Counteroffers Easier

Ways to Make Counteroffers Easier

No matter if your client is buying or selling, counteroffers can pose sticky negotiations from both sides. Here are three tips for successfully responding to counteroffers from Desare Kohn-Laski, broker-owner of Skye Louis Realty in Coconut Creek, Fla.

1. Ask for something in return.

Sellers and buyers alike should remember that counteroffers are made because the other party outlines something very specific they want in the transaction, Kohn-Laski says. For example, if your buyers find that appliances are specifically not included in the seller’s counteroffer, then your buyers might want to offer more money to include the appliances in their second offer.

2. Offer incentives.

If you are on the seller side, your client could offer to pay the buyer’s homeowners association fees for a specific period. “Capitalize on the primary truth that most buyers will need extra cash after the big purchase,” Kohn-Laski says. Incentive ideas for buyers include interior repainting or a year of free lawn services. For sellers, covering moving costs or repair costs from an issue found during inspection could also be useful incentives.

3. Know when to split the difference.

Meeting the other side halfway is usually a winning solution; it’s an art that leads to closing deals, Kohn-Laski says. When a few thousand or few hundred dollars appear to be the hurdle, you can counter by offering to split the difference. For instance, if the list price is $435,000 and your buyer wants it for $430,000, split the $5,000 difference to achieve $432,500.

Source: Skye Louis Realty