Student Debt Hindering First-Time Homebuyers

Kenneth Harney wrote for The Columbus Dispatch that student debt is impeding first-time homebuyers. This group traditionally accounted for 40% of home purchases, but only reached 28% in May 2013, according to the National Association of Realtors. The lack of first-time homebuyers creates a domino effect on the housing market: no one is there to buy starter homes, those who currently live in starter homes and wish to move to bigger homes have no buyers, and thus people in even bigger homes likewise have no buyers. The Wisconsin Institute conducted a research study on the matter. The rate of home-ownership among people paying off student loans is 36% lower than that of those with no student debt. Other factors pushing first-time homebuyers out of the market are 20% down payments for conventional loans, persistent negative equity problems, and competition from cash buyers with no financing contingencies.  While some people think renting is the answer, the true problem lies with the elevated costs of higher education. 

How to Modernize the Layout of Your Home

For years, homebuyers sought homes with wide open spaces, with the kitchen competing for attention with the huge, two-story great room. Meg White, a writer for Realtor Magazine, says that's not the situation anymore. Today's homebuyers want to see carved out spaces with designated uses. As for the competition between the great room and the kitchen, these two areas have combined to comprise the main living space of a home. But the contemporary great room doesn't feature a soaring ceiling anymore--it's much more intimate with 10 foot ceilings. Furthermore, buyers don't want to walk right into their main living space, which then gets cluttered with the day's mail, the kid's homework, and car keys. New homes often feature distinct entryways that contain a "drop zone" to help people keep their homes clean and organized. Lastly, the master suite has gained more importance in recent years. Master fireplaces are on the rise, and home builders are conscious to create spaces that work for couples on different sleep schedules.

Does this not sound like your home? There's a few ways to modernize the flow of your house without tearing down walls or adding on rooms. To make the entryway more prominent, add a small table with a drawer, a mail organizer, key hooks, and a charging station. This can serve as your "drop zone." If you have a vast open space for your great room, consider creating nooks and crannies with specific purposes. Perhaps you could make a corner of the room a "homework space" by placing a desk in it. Both of these alterations will help keep your main living space livable--that is, not overwhelmed by everyday clutter. As for the master suite, it often pays off to moderately update your master bath. Funds used to add onto and improve mid-range bathrooms yield a better return on investment than higher-end projects. If you'd like to upgrade bathroom countertops without spending too much money on granite or marble, a mosaic of colored tiles may be the way to go.

For more information, view the original article here.

Contact me if you're interested in updating and staging your home to sell-when I list homes, I stage them for free!

Make Your Move Stress-Free

Packing and moving can be a huge ordeal. But with proper organization and a few key tips, you'll see that it doesn't actually have to be a long, overwhelming process.

Do as much as you can before moving day. Donate anything you don't want, and dump trash regularly. Ensure that movers can easily navigate your home by removing obstacles such as rugs, low hanging items, and anything surrounding the front door.

Organize. Mark all items you don't want loaded, and separate them from those that you do.  Make sure paperwork is not packed. Also mark special or fragile items, and point these out to movers. It's a good idea to have a few boxes containing items you'll need right away (perhaps kitchen and bathroom things)--instruct movers to unpack these items first, and mark the boxes accordingly. If you have kids, consider letting them pack a box of their favorite things, and ask that it be unpacked early on. Color code boxes by using a different color of masking tape for each room.

Ask questions.  Make sure that you understand all paperwork. If not, ask for clarification.  Give the driver your new address and contact information. Ask the mover:

• For his/her cell phone number
• For tracking information
• Whether your shipment is the last to be loaded (this will help you determine when the driver leaves for your new home)
• Whether your shipment is first to be unloaded
• For an estimated delivery date and time 

Take care of your movers. Movers often work long, tiring days. It's a nice gesture to pick up something for them to eat (pizza, anyone?) and to keep water and soda available. Show them where drinks are kept and which bathroom to use, so they don't have to worry about asking. It's your decision whether you want to tip the driver. Many people do, and the driver can then distribute some of the tip to his/her crew.

When sellers list their homes with me, I provide them with a number of resources, including a moving checklist and instructions on helping children cope with your move. Contact me if you're interested in selling your home--I can help! To learn a packing plan in only two minutes, watch the video below:

The Latest Home Decor Trends

Colors

This year, home decorators have made it known that color is not simply for art hanging on the wall. Mint Green is the color of the summer. And it's not just reflected in clothing and jewelry: furniture and home accessories also come in this fresh color. Silver has been the metal of choice for years, but now yellow metals--gold and brass--are in. Gold accents with softer finishes (rather than full-on shine) and antique brass finishes have made their way into kitchens, bathrooms, lighting fixtures and more. Also making a comeback is wallpaper. Despite it's bad reputation, wallpaper comes in a wide variety of colors, patterns, and styles. If you're weary about using wallpaper, consider covering an accent wall, or a small space such as an entryway, rather than an entire room. Painted front doors freshen up a home's exterior, and painted furniture is also trendy. Dated pieces found at flea markets or secondhand shops can be transformed by a coat of paint and new hardware. This DYI project is great for creative people who like a good deal. Watercolors are also popular, not just on art, but also on fabrics and accessories. This, too, you could try yourself, by picking up watercolor paint at a craft store and applying it to lamp shades and fabrics. For more DYI projects, click here.

Materials
Exposed brick often gives a home character and style. Now, raw wood and rope are becoming just as popular. Wood is compatible with many different styles (cottage, vintage, contemporary, etc). You can find raw wood pieces at architectural salvage stores and flea markets. You can also buy new items that are meant to look distressed. Repurpose wooden objects you already own but don't often use--that latter in your garage would make a great bookshelf! Barn doors enable people to close off rooms separated by a large doorway. Simple track hardware can be found at a farm supply store. The resulting sliding door will be both practical and stylish. Like raw wood, rope also lends itself well to a variety of styles--from nautical to industrial. It provides a natural, earthly feel to any room. Woven chairs and baskets can be found at many stores, and wadded rope used as book ends or door stops are also available.

Decor
Curvy and colorful gourd lamps look great on side tables and nightstands. Statement installed light fixtures are also trendy ways to brighten up a room. Lighting show rooms and home centers showcase stylish fixtures in various styles, such as industrial. Block Prints are noted for their global appear and exotic flare. They are becomming more common (and thus affordable!) in mass produced products. Nailhead trim continues to be popular. It adds sophistication and timelessness to a piece of furniture. Lattice or trellis prints (most commonly a color pattern on a white background or the inverse) make great window treatments and throw pillows. You can also stencil patterns onto a wall, or use wallpaper.

Watch the video below for a demonstration on how to paint, sand, and distress furniture:

Six Essentials to Consider When Buying a Home

With millions of new builds and many more resales each year, buyers have a huge array of options when looking for a home. There are many differences between buying a new home versus a "used" one. And it's not a decision to take lightly--for most of us, real estate is our biggest asset. So how do you decide which home is right for you? Consider these key features:

1. Location. Location, including the lot, neighborhood, and proximity to desired places, is traditionally the most important factor of home-buying. Do you want to be more towards the suburbs or city center? Older neighborhoods are more likely to be close to the center core and, with their mature landscaping, can create a stronger sense of community. You also want to make sure that an area is safe--drive through the neighborhood at night to see how well lit it is, and whether people are out jogging, walking their dogs, etc. The police station can give you information regarding crime rates. 

2. Price & Taxes. You want to feel good about buying your home, which can be accomplished by spending less than your maximum budget. Spending all your money on a home can make you "house poor," meaning you have insufficient savings to maintain your lifestyle (for example, travel and take vacations). Used homes tend to be less expensive than new builds. Remember that the asking price is always negotiable, and also that there are many additional expenses that accompany home ownership.  Taxes vary based on municipality and school district. Many older households aren't required to pay for local bonds associated with new development (for example, schools and parks). It's best to research taxes before you decide to put an offer on a home. 

3. Maintenance & Repair. Get a home inspection when buying a lived-in home, as the home likely will show signs of use. Check the status of all major working systems, such as electrical and plumbing systems. If something needs to be repaired or replaced, this should be considered when pricing the home. You can also use repairs as a negotiating tool ("contingent upon the fixing of..."). You may face some small, DYI projects. If you're up for this, a used home may be right up your alley. If you want a home that's 100% turn key, a new build may be the way to go. It's virtually the only way to eliminate the natural wear and tear an older home undergoes. 

4. Layout. Older homes have a more traditional floor plan, often with formal living and dining rooms. They also may be more closed off. The 5-level split is a popular floor plan for new construction, and oversized family rooms that open to the kitchen are also modern and common. Layout is important because it's hard to change--you may be able to knock down a wall or two, but it's a major renovation that's much more complicated than switching gold cabinet pulls with bronze ones. Function runs right alongside layout. Older homes can be functionally obsolete--they have minimal closet and garage space, for example. When searching for a new home, ask yourself how well the space is used to suit your needs. 

5. Features. Older homes, especially former model homes and custom built homes, tend to have more special features, or character, than new builds. This could be in the form of built-ins, security systems, landscape, etc. Again, ask yourself how important these features are, and if you are willing to compensate for missing essentials. If you love gardening and spending time outdoors, it may be no big deal that your home comes with little to no landscaping. 

6. Resale Value. In terms of resale value, older homes are safest because you can track how much they have appreciated or depreciated over the years. Even though this is a rough measurement, it gives you some idea of resale value. Whether or not you have kids, homes in good school districts often have good resale value. It's good to keep resale value in mind even after you buy a home, especially if you customize or renovate  the home in some major way. Try to put money into the home that you can reasonably expect to get out of it.  Kitchens and bathrooms have good returns on investment, while adding a pool can actually hurt sellers. 

Still not sure whether you'd prefer a new build or resale? Click here for a more thorough explanation of key differences between the two, or contact me for help.

Local Builders Dominate Central Ohio's Market

The Columbus Dispatch writer Jim Weiker revealed on Sunday how Central Ohio's residential construction is dominated by big and aggressive local firms, to an "unusual degree." More than 12,000 of the approximate 13,000 apartments under development in Central Ohio are being built by companies based in the area. M/I Homes and Dominion Homes account for over half of all homes built in Central Ohio. Jim Hilz, executive director of the Building Industry Association of Central Ohio comments that for two companies to have that amount of market share is unprecedented. All but three of Central Ohio's other big home builders are based in the area. Aside from Ryan Homes, based in Reston Virginia, none of the nation's largest builders even operate in Central Ohio. Many have tried to establish themselves (Beazer Homes, Toll Brother, and Centex Homes) but have failed to do so. Central Ohio's local companies such as Bob Webb and Romanelli & Hughes continue to thrive thanks to their strong roots and good reputations with residents, customers, and landowners. A local company's established arrangements with subcontractors, experience with customers who may wish to remain with the same firm, and connections with land-owners and developers all benefit local companies.

2013 Kitchen Fads

Kitchens are not just a place to cook meals anymore--they double as dining rooms and family rooms, too. Large kitchen islands allow for banquette seating, and dinettes provide additional seating options. Sitting areas and hearths in kitchens are not uncommon. As a result of this unified space concept, kitchen cabinets resemble fine furniture. White cabinets are popular for their classic style and versatilitly. With white cabinets, the rest of the kitchen becomes a blank canvas that homeowners can transform with their favorite colors, decor, countertops and backsplash. White cabinets are also common because they are compatible with many architectural styles, from country to contemporary.

Stainless steal appliances, as well as integrated appliances, make kitchens feel more sophisticated and polished. Now, manufacturers even offer fingerprint-resistant stainless steal appliances. Some appliances, such as refrigerators and dishwashers, have become more or less invisible, due to new technologies and techniques (such as adopting cabinetry panels) that enable them to blend in with their surroundings.

Many trendy kitchens sport specialized work zones, walk-in pantries, and technology. Work zones include desks, baking centers, wine-tasting areas, coffee bars, and pizza-making stations. Walk-in pantries are ideal for large families. It enables them to store bulk food items and kitchen supplies behind closed doors, saving kitchen cabinet space for utensils, plates, cups, and kitchen tools that are frequently used. Electronics such as wall-mount televisions, sound systems, computers, and ipads have started to replace conventional kitchen decor.

Layered kitchen lighting makes for both comfortable and functional kitchens. Recessed fixtures provide ambient light, while chandeliers and pendants hang above seating areas (i.e. kitchen islands and tables). Lighting can also be added under and above cabinets to highlight certain areas. Light-emitting-dilodes (LEDs) consume less than half as much electricity, and can last 10 times as long, as florescent lights. Also eco-friendly, products made from sustainable materials are on the rise. Countertops can be made from recycled glass, and cabinets can be manufactured using no or low-formaledehyde glues from bamboo and wheatboard. To reduce energy bills and the use of natural resources, water-conserving faucets and energy saving appliances are increasingly popular.