New Year Home Goals. Whether You’re Selling, Buying or Staying Put.

The new year compels people to take inventory and offers them the opportunity to set goals ranging from their healthy, career, relationship and finances. With home prices rising, mortgage rates at historic lows and inventory levels very tight the start of the year is also the right time to make some resolutions regarding your home ownership.

Home buyers, you need to understand the market and have everything in order to act quickly and decisively.

Home sellers, while Austin is a seller’s market there are still thing you can do to maximize your homes value and get top dollar.

Even if you have no plans to move in the near future, we have recommendations to keep your home in tiptop shape or perhaps take advantage of the wave of real estate prices and historically low interest rates.

Regardless of your home ownership status here are some ideas and advice to make 2021 your best year yet.

Home Buyers

Resolution #1: Make sure your finances are in order.

Getting your financing in order is a good goal at any time and a popular New Year’s resolution.  This is especially important for people looking to purchase a new home.  Understanding your income and expenses along with evaluating your assets and credit will go a long way to determining your readiness for home ownership.

Your credit report and score are key pieces of financial information when getting ready to buy a home.  They are used by lenders to determine if you can qualify for a mortgage and what the interest rate will be on the loan.  Making sure all the information if accurate is also very important as inaccurate information can negatively impact your credit scores, prohibit you for qualifying for a mortgage and often take weeks or months to get straightened out.  The site annualcreditreport.com will allow you to review your credit report from each of the three credit bureaus, Equifax, Experian, and TransUnion for free.  You can also obtain your score from some banks and credit card companies for free.

Purchasing a home will require some cash as well.  Most loans require a down payment and there are other costs and expenses to consider.  From inspections, moving expenses, closing costs, potential remodeling or updates as well as having a nest egg for potential repairs and maintenance that might occur, it’s important to make sure you have sufficient reserves to start your home ownership off on the best foot.

Resolution #2: Find out how much home you can afford.

Having a budget when you go shopping is always a smart idea and leads to the best shopping experience.  This is especially true when shopping for a home.  If you don’t know what priced home you can afford or what your monthly payment will look like you could be looking at homes in the wrong price point or even the wrong part of town.

Working with a lender to get pre-approved has a number of benefits.  First, you’ll know how much of a home you can afford (not that you have to spend that much if you don’t feel comfortable with the monthly payment).  Second, you’ll be able to find out if there are any things you can do to help you qualify for more or get you better terms or rate on a mortgage. (In fact, I would recommend getting pre-approved for a mortgage before making changes to your finances as it’s possible not paying off some debt could be the best move for you) Finally, having a pre-approval in hand is paramount when submitting an offer on a property and having one all ready prepared is crucial in the current hypercompetitive market.

Resolution #3: Understand the local housing market.

Knowledge of your local real estate market is critical in the home buying process.  Are you looking to buy a downtown condo to be close to all of Austin’s event and activities?  Interested in west Austin with its top-rated school and close proximity to Austin’s lakes? Looking for a more affordable home in the Austin suburbs?  Understanding the unique aspects that each city, area and neighborhood have to offer will help you weight the benefits and drawbacks of each along with understanding the challenges of finding the right home for you in these areas.

Currently in Austin has historic low housing inventory.  This has caused historically high prices and also drastically reduced time that a home sits on the market.  If you’re not prepared to see a home and put an offer in within a day or two of it coming on the market there is a good chance you’ll miss out.  Understanding the mindset required in this market and having a trusted real estate advisor to guide you through the process will easy the stress and give you a leg up to find the right home for you.

Home Sellers

Resolution #4: Pinpoint the optimal time for you to sell your home.

If you’re looking to maximize profit on the sale of your home, selling when the market has a peak level of buyers is your best choice.  The start of the year sees a ramp up in activity peaking in spring and early summer with a steady decrease throughout the rest of the year.  Price are expected to continue to increase as interest rate and inventory levels remain at history lows.

However, sales price isn’t the sole consideration when deciding when to sell.   Your home may not be ready to sell if it needs some upgrades or repair prior to putting the home on the market.  You may also choose not to disrupt your family during the middle of a school year.

While there is no perfect time to sell your home, having a trust real estate advisor educate you on your specific options and needs will allow you to take all the factors into consideration and help you make the best decision for you and your family.

Resolution #5: Maximize the value of your home.

Home inventory is at an all-time low in Austin and across the country.  This means that the market is fiercely competitive.  The potential to reap huge return if you sell your home in 2021 is very realistic and there are some ways to maximize that return with simple fixes that will make any property shine.

While homes are selling at a historic pace and for historic prices most home buyers still prefer to find a home that is move in ready with little need for updating or remodeling.  If the wall paint or flooring is outdated or needs replacing it makes financial sense to get those things done. 

Improving your curb appeal on the exterior of the home is important as well.  Make sure trees, plants and grass are trimmed and the windows and siding are clean.  First impressions for a home are very important.  Not only will cleaning and freshening your home give you quality home pictures to display online, which is how most buyer initially see your home, but it also makes sure when they see it in person for the first time that their expectations from the photos are meet.

Resolution #6: Convert your living spaced to meet current buyer needs.

With COVID disrupting our lives more people have been required to spend and even greater amount of their time at home.  From working, going to school, exercising and entertainment, more and more of these activities and experiences are taking place at home.

More buyers are looking for homes with updated kitchen appliances for cooking in, home offices for work and school, private outdoor space to entertain and relax.  Making sure your home is taking advantage of all the spaces and showcasing the possibilities will allow you to attract more buyers and better offers.

Before you invest in any major renovations make sure to consult with a real estate advisor to ensure the time and money, you’re investing will reap the necessary returns.

Homeowners

Resolution #7: Re-evaluating your household budget for an unexpected year

Having a handle on your budget is smart anytime but particularly after the year we’ve had and the uncertainty that abounds re-evaluating your budget and life circumstances is a prudent thing to do.  Changes like being furloughed, reduced hours and working from home all bring unique challenges to our budgets.

While working from home has potentially brought the savings of less money spent on gas, vehicle maintenance, dry cleaning and going out to lunch; there could be increased expenses for higher energy bills, faster Wi-Fi service and new technology needed to handle all the video conferencing we have been doing.

The start of the year is a great time to make sure your spending habits are inline with your income to ensure you’re continuing to save money.

Resolution #8: Set up a maintenance schedule for you home.

A regularly followed maintenance schedule will make it easier to tackle necessary home project throughout the year and also help you catch potential issues with your home before they become costly emergency repairs.  You’ll also reap the benefit of having a house that’s in great working order when the time does come for you to sell which will get you higher offers.

If everything is in good working order right now there are upgrade you can look into to save money on energy costs or repairs down the road.  Replacing outdated light bulbs with ENERGY STAR ones can save $75 a year, replacing old toilets with low-flow models can save $100 a year, and sealing air leaks to keep out the Texas heat this summer could save hundreds of dollars a year.

If you are concerned about major appliances or equipment breaking down a home warranty could help you save thousands of dollars on costly repairs.

Resolution #9: Invest in real estate to build wealth and your quality of life

Even if you have no plans to move from your current home there are opportunities to have real estate impact your quality of life in 2021.

Has the pandemic and quarantine given you cabin fever?  With our homes becoming offices, schools and gyms, it can be harder to truly escape and relax at home sometimes.  A vacation home could be the perfect escape to allow you to relax and recharge.

If you’ve been looking at retirement, ways to generate additional income or have noticed the surge in people relocating to Austin and the crazy real estate price increases, an investment property could be the way for you to take advantage of the increase home prices and rental rates.  The property could also be a potential retirement nest egg, an income stream, or the property you retire too while getting in the market at today’s prices and taking advantage of current low interest rates.

HERE TO HELP YOU WITH YOUR 2021 RESOLUTIONS

Without a plan and support system 55% of Americans will break their New Year’s resolutions.  Regardless of your real estate plans, it helps to connect with a trusted real estate advisor to keep you informed, motivated and on track.

We have resources at our disposal from budgeting guides, maintenance schedules, professional connections and industry knowledge and expertise that we’re happy to provide and share with you to help you reach your 2021 goals.