If you ask what the current mortgage rate is, the number you hear will almost always be the going rate for a 30-year fixed-rate mortgage.

It’s generally considered the gold standard of home loans. The rate never changes, the principal and interest portion of the payment is predictable, and there’s no risk of an unpleasant adjustment lurking somewhere down the road.

Adjustable-rate mortgages, commonly called ARMs, don’t inspire the same warm and fuzzy feelings, and many buyers dismiss them entirely.

But even buyers who are open to considering one often ask their real estate agent whether it’s a smart move, or if they’re taking too much of a risk.

When they do, there’s a good chance the agent’s answer will sound something like: “It depends.”

First of all, agents have to be careful about giving definitive financial advice. Beyond that, there simply isn’t a clear-cut answer.

It depends on the buyer. It depends on how long they expect to own the home. It depends on their comfort with risk. An ARM can be a good option for some buyers, but not for everyone.

None of that is wrong, but it may not feel particularly helpful when you’re trying to make a decision. Fortunately, some recent research offers a little more substance than “it depends.”

History Has Been Surprisingly Kind to ARM Borrowers

An adjustable-rate mortgage typically offers a lower introductory interest rate than a 30-year fixed mortgage. That rate remains fixed for a certain number of years, often five, seven, or ten. After that initial period, it can adjust periodically based on current market conditions.

The obvious appeal is that the borrower starts with a lower rate and monthly payment. The obvious risk is that both could eventually rise.

But an analysis of Freddie Mac mortgage-rate data going back to 1970 found that about 71.6% of buyers who chose an ARM would have had an opportunity to refinance into a 30-year fixed mortgage with a rate at least half a percentage point lower than their original rate within five years.

In plain English, roughly seven out of ten would have had a chance to lock in an even lower fixed rate before their ARM ever reached its first adjustment.

More than half, 52.8%, would have had the opportunity to refinance at a rate at least one full percentage point below the rate they originally received.

That doesn’t mean every one of those borrowers actually refinanced, or that doing so would have always produced net savings after refinancing costs. Nor does it guarantee that history will repeat itself. But it’s something concrete to factor into the decision when weighing the potential risk against the reward.

Historically, the odds of getting a lower initial payment and having an opportunity to refinance before the rate adjusted were more favorable than many buyers might assume.

But What If the Rate Goes Up?

Saving money is only one part of the decision. For many buyers, the scarier question is what happens if things don’t go according to plan.

What if rates don’t fall? What if refinancing isn’t possible? What if the ARM adjusts upward and the new payment is no longer affordable?

Those are legitimate concerns. Any buyer considering an ARM should understand how often the rate can adjust, how much it can increase at one time, and the maximum rate permitted over the life of the loan.

However, today’s ARMs aren’t quite the financial Wild West some buyers may remember from the housing crisis.

According to a recent analysis from TD Economics, modern ARMs generally have longer initial fixed-rate periods, explicit limits on how much rates can increase, and stricter underwriting requirements than many of their pre-2008 predecessors.

In fact, an ARM may be slightly more difficult to qualify for than a traditional fixed-rate mortgage. Lenders are required to consider whether a borrower could afford higher payments at potential future adjustment rates, not simply whether they can handle the attractive introductory payment.

That doesn’t eliminate all risk. A payment that’s technically affordable on paper may still feel uncomfortable within someone’s actual budget. You still have to take your own comfort level into consideration. If a potentially higher future mortgage payment is going to keep you up at night, it’s probably not the right fit for you.

But if your biggest fear is being approved based on the lower introductory payment, only to be blindsided by a payment you could never afford, know that today’s underwriting requirements are designed to account for that possibility. In a sense, the lender is already stress-testing that scenario before approving you for an adjustable-rate mortgage.

Not a Sure Thing, but Worth Considering

An adjustable-rate mortgage isn’t automatically better than a fixed-rate mortgage. But it isn’t automatically a risky or inferior choice either.

For someone who expects to sell within several years, anticipates refinancing, or simply wants to take advantage of a lower initial rate, an ARM may be worth serious consideration. History suggests the odds have often worked in the borrower’s favor, and today’s qualification standards and rate caps provide protections that didn’t always exist in the past.

The decision should still be made with a clear understanding of the worst-case payment, not just the appealing introductory one. A knowledgeable mortgage professional can explain the specific terms and run both scenarios. Depending on your broader financial situation, an accountant or financial advisor may also be worth consulting.

There’s no absolute answer to whether an ARM is “worth the risk.” But knowing that roughly seven out of ten borrowers historically had an opportunity to refinance into a lower fixed rate is useful information to consider before writing one off entirely.

The post Need a Hand Making Sense of ARMs? Adjustable-Rate Mortgages May Not Be as Risky as They Sound… appeared first on Lighter Side of Real Estate.

If you’re renting and seriously considering buying a home, you may already be taking stock of every dollar you could put toward it.

Your savings. A tax refund. Maybe some help from family. A winning lottery ticket, perhaps.

Then you remember the security deposit your landlord is holding!

That could be hundreds or even thousands of dollars. It’s easy to include the money in your mental tally. After all, you paid it and may fully expect to get it back.

But if you’re trying to time your closing with the end of your lease, it probably won’t be much help with the purchase.

Your landlord typically won’t return the deposit until you’ve moved out, handed over the keys, and given them time to inspect the property. Depending on local laws, they may still have several weeks to return it or explain any deductions.

By then, you may have already closed on your home and paid the down payment, closing costs, and movers. You also won’t know for sure how much you’re getting back until the rental has been inspected.

In other words, it may be your money, but it isn’t money you can confidently count on yet.

That can be incredibly frustrating when you’re staring at all the upfront expenses involved in buying a home and could really use it.

So the safest approach is to plan your purchase as if that money won’t be available.

That may sound disappointing. (Or even unfair.) But it doesn’t mean your security deposit can’t play a valuable role in becoming a homeowner.

It may simply be arriving at the perfect time for a different one.

First, Do What You Can to Get It All Back

Security deposits are generally meant to cover tenant-caused damage, unpaid rent, or other costs allowed by the lease and local laws. To put it bluntly… stuff you did wrong. They usually aren’t supposed to cover normal wear and tear. So hopefully you’ve been a good, conscientious tenant!

Before moving out, review your lease and ask your landlord what they expect. Clean thoroughly, remove everything you own, return all keys, and address any damage you’re responsible for ahead of time if possible.

Take detailed photos or videos once everything is out. If your landlord offers a pre-move-out inspection, take advantage of it. An in-person walk-through can show you where you stand and give you a chance to discuss any concerns before leaving.

But don’t rely solely on verbal communication. Put anything important in writing, provide a forwarding address, and keep copies.

None of that guarantees you’ll receive the entire deposit, but it may help you avoid unnecessary deductions or challenge one that doesn’t seem justified.

Let It Keep Doing the Same Job for You

Once the money arrives, it may be tempting to treat it like a windfall.

There will probably be furniture you want, rooms you’d like to paint, and projects that already have you wandering the aisles of a home improvement store.

There’s nothing wrong with budgeting for those things. But it isn’t found money. It’s returned money.

Before spending it, consider letting it continue doing essentially the same job it did while you were renting.

Your security deposit spent years protecting your landlord’s property. Now you can put it in your own separate account to help cover expenses related to your property.

Every home will eventually need repairs, maintenance, and replacements. That doesn’t mean you should expect an expensive disaster around every corner. But having money set aside makes those moments easier to handle.

It can keep you from delaying necessary work, putting a repair on a credit card, or financing it and paying even more in interest.

Make It the Beginning, Not the Entire Fund

A returned security deposit probably won’t cover every repair a home could need. But it can provide a nice head start.

Building a home maintenance fund is something every homeowner should do, yet many never get into the habit.

Your returned deposit gives you the perfect reason to start. Continue adding a manageable amount each month, and over time an appliance that stops working or a repair that can’t wait may feel more like an inconvenience than a financial emergency.

Your security deposit may arrive too late to help you buy the home. But it can arrive at exactly the right time to begin helping you take care of it.

It spent years protecting your landlord’s property. Once you get it back, let it start protecting yours.

The post The Best Use for Your Rental Security Deposit May Come After You Buy a Home appeared first on Lighter Side of Real Estate.

Order a burger from almost any fast-food restaurant and compare it to the one in the advertisement.

The one in the ad was carefully assembled, perfectly lit, and photographed from its most flattering angle. Yours looks like somebody sat on it before wrapping it in paper.

Clothing ads aren’t much different. An outfit may look amazing on a model under professional lighting, after being pinned and tailored in all the right places. Then you try it on beneath the unflattering lights in a dressing room and wonder if it’s even the same outfit.

So it shouldn’t be surprising that homes are also marketed to look as appealing as possible.

But a house is a much bigger purchase than a burger or an outfit, so it’s understandable that buyers have become increasingly frustrated, disappointed, and even angry over the stark difference between how some homes look online and how they appear in person.

This Was Happening Long Before AI… or Even Photos

AI is getting much of the blame for overly enhanced listing photos, and it has certainly made them easier and less expensive to create.

With a few clicks, a real estate agent can furnish an empty room, digitally paint the walls, remove clutter, and turn a dull lawn lush and green, all without having to master the fine art of photography or Photoshop.

But real estate photography was enhancing reality long before AI arrived.

For years, professional photographers have been brightening dark rooms, replacing gray skies with blue ones, and using wide-angle lenses to capture an entire room in one shot. Drone photography can make an ordinary house look like a sprawling estate. A twilight photo, complete with a dramatic sunset and the exact same warm glow coming from every window, can make almost any home feel extraordinary.

In fact, enhancing the look of a listing was happening before photography was even widely used in the business.

Long before buyers could scroll through listing photos online, properties were marketed using hand-drawn illustrations. An actual artist would create an idealized (aka exaggerated) version of the home designed to make it look more appealing.

If Reddit existed back then, no doubt there would have been plenty of forums and threads commenting on how misleading many of those drawings were.

It Might Hurt Sellers More Than Buyers

Brightening a photo so the room looks the way it does on a sunny afternoon is different from making a naturally dark room appear flooded with light.

Adding appropriately sized furniture to an empty room can help buyers understand how the space might function. Adding a bed, two nightstands, and a large wardrobe to a bedroom that could never fit them is another matter.

Removing a trash can that could easily be rolled out of sight isn’t the same as removing an electrical tower, neighboring house, stain, or crack.

Where the line should be drawn can be difficult to define. But the farther the photos drift from what buyers will actually encounter, the more likely the strategy is to backfire on the seller.

Arriving at a house and discovering that the photos were far from accurate may waste a buyer’s time or leave them feeling disappointed and misled. But the seller may ultimately suffer more from the effects of the special effects. A buyer can cross the house off their list and move on. The seller may have to endure that same reaction showing after showing.

Great photos can generate clicks, showing requests, and excitement. But none of that matters if buyers repeatedly walk through the door and immediately feel like they’re seeing a lesser version of what they expected.

Buyers already tend to arrive with higher hopes for a house than it can live up to, even when it was accurately portrayed in the photos. Overly enhanced images only exaggerate their disappointment. (To be fair, sellers often have similarly high hopes about how much their home is worth…)

Instead of seeing the home for what it is, they compare it to the brighter, larger, cleaner, and more stylish version they had already pictured in their minds.

The seller has created an expectation the actual house now has to overcome.

If the home receives plenty of online attention and showings but no offers, overly flattering photos may be part of the problem. The seller didn’t necessarily attract the wrong buyers. They may have caused the right buyers to begin every showing with the wrong reaction.

At the very least, that may make the house take longer to sell. But there’s also a distinct possibility that buyers who can look past their disappointment will factor it into what they’re willing to pay, which could result in lower offers and, ultimately, a lower sale price.

Be the Buyer Who Can See Past the Photos

As a buyer, you may want to be the one who can see past misleading photos and the disappointment they create.

That doesn’t excuse genuinely misleading images. But when a house doesn’t live up to its photos, ask yourself whether it’s truly the wrong house or simply not the house the photos led you to imagine.

If the location, layout, condition, and price still make sense, the home deserves to be evaluated based on those realities.

Overly enhanced photos won’t automatically mean you can get a better deal. An otherwise desirable house in a competitive market may still attract plenty of offers. But if other buyers are having the same negative reaction, it could mean less competition, more flexibility on price, and a seller who is beginning to wonder why plenty of showings haven’t produced an offer.

And that could ultimately put you in a position to negotiate a better deal.

The post Most Home Buyers Get Annoyed When Listing Photos Are Too Enhanced (Here’s Why You Shouldn’t Be…) appeared first on Lighter Side of Real Estate.

Dogs can be a touchy subject between homeowners and their real estate agents…even when the agent loves dogs.

From suggesting that a dog shouldn’t be home during showings, to mentioning a noticeable dog odor, to passing along feedback about barking, jumping, or growling, to pointing out that buyers had to carefully navigate a backyard full of “surprises.” It’s all meant to be helpful advice.

It isn’t that agents don’t understand how much people love their dogs. Many are devoted dog owners themselves. But even well-intentioned advice can easily feel like a personal attack.

The reality is that selling a home requires separating how you feel about your dog, and your desire to make the house as much theirs as yours, from how it will feel to the people considering buying it.

And that’s becoming even more important now that dogs aren’t just members of the household. In some cases, the household is being designed around them.

What Is “Barkitecture?”

According to a recent Forbes article, there’s a growing design trend called “barkitecture”…and dog owners should embrace it.

Let’s be honest, plenty of dog owners would probably respond, “You had me at ‘bark.’” No need to explain further. They’re in. All in.

But before leaping into the trend headfirst, it’s probably worth defining what it actually is.

Barkitecture is the practice of incorporating features into a home that make dogs safer, happier, and more comfortable.

That can mean something as simple as creating a cozy nook for their bed or adding a built-in feeding station. But it can also include more substantial features, such as a dedicated dog-washing station, custom kennel, ramp, dog run, or even an entire room designed around a pet’s needs.

It’s easy to understand the appeal.

If you’re constantly bending over a bathtub to wash muddy paws, a raised dog shower could make life much easier. A feeding station might keep bowls from sliding across the kitchen floor. Nonslip flooring or a ramp could help an older dog move around more safely.

The Forbes article makes an appealing case for embracing barkitecture. But before you hand your dog the renovation budget, it’s worth considering how those features could affect more than just your life together.

And Should You Embrace It?

If a barkitecture feature will make life easier for you and safer or more comfortable for your dog, there’s certainly nothing wrong with adding it.

Not every decision you make about your home needs to revolve around what some hypothetical future buyer might want. If you’ll get years of use and enjoyment out of a built-in feeding station or custom sleeping nook, that may be enough reason to create one.

But there’s a big difference between tucking a dog bed into an otherwise unused space beneath the stairs and converting an entire room into a dedicated dog shower and grooming area.

One adds character without necessarily changing how the home functions. The other requires a much larger investment and permanently devotes valuable space to a highly specific use.

That doesn’t mean you shouldn’t do it. But the more expensive, permanent, and customized the feature becomes, the more thought you should give to whether it can be removed, adapted, or used for something else if you eventually decide to sell.

Because when it comes to resale value, barkitecture can be a lot like another home feature people tend to either love or avoid…

Like a Pool, It May Limit Your Buyer Pool

People often ask real estate agents if adding a pool will increase the value of their home. There’s no absolute answer. It depends on a lot of factors. It certainly can…but it can also limit the number of potential buyers.

So if people truly start embracing barkitecture, it’s probably only a matter of time before agents are asked how much value was added by turning a bedroom into a dedicated dog shower and grooming room.

And it may not go over well when they explain that it might not add value at all, and could potentially hurt it unless the room is converted back into a bedroom.

It may be tempting to argue that there are plenty of dog owners who would absolutely love having a room where they can wash their pup. And there may very well be a buyer or two out there who will.

But we’re not talking about something like a fenced yard, which dog owners often love because they can let their dog outside without worrying or taking on the cost of installing a fence themselves. A fenced yard may also appeal to buyers with children, people who want more privacy, or anyone who happens to be into “fencitecture.”

Highly customized dog features don’t necessarily have that same broad appeal.

Even another dog owner may not be the right dog owner. A shower designed for a Great Dane might be excessive for someone with a Chihuahua. A backyard dog park could feel like wasted space to someone whose elderly dog would rather spend the day sleeping on the couch.

So, will barkitecture add value to your home?

It could.

If the right buyer loves the features, they may see more value in your home than they would in a similar one without them. If more than one interested buyer feels that way, you could even have the makings of a bidding war.

But the more specific a feature is, the smaller the pool of buyers who may appreciate it. Anyone who doesn’t want it may view it as something they’ll need to spend money removing.

That doesn’t mean you shouldn’t create a home that works for you and your dog. Just keep resale in mind before making permanent changes, and consider whether the feature can be removed, repurposed, or marketed in a way that appeals to more than one type of buyer.

Because barkitecture may make your dog feel right at home. But when it’s time to sell, you’ll also need buyers to feel the same way.

The post Your Dog May Love It if You Add Some “Barkitecture” Into Your Home! But Will Future Buyers? appeared first on Lighter Side of Real Estate.

It’s easy (maybe even necessary) to joke about how much stuff our parents accumulate over the years.

For instance, there’s an entire “Millennial Inheritance Community” on Instagram devoted to humorously showcasing the unusual, overwhelming, and sometimes enormous collections people have inherited, or expect to someday.

Depending on your family dynamics, you may even tease your own parents about how you’ll need several dumpsters just to clear out their basement, attic, or garage.

But beneath the jokes, many adult children have a legitimate concern about eventually having to deal with a lifetime’s worth of belongings.

Whether it’s because their parents decide to downsize, move into assisted living, or pass away, few people look forward to sorting through decades of possessions and deciding what should be kept, sold, donated, or thrown away.

Unfortunately, it’s not something many families openly discuss or plan for.

And clearing out a parent’s home can be far more complicated and costly than most people anticipate.

You’re Certainly Not Alone if This Concerns You

According to a recent Realtor.com article, 84% of people who recently inherited a home said it needed to be cleaned out before it could be listed for sale. More than one-third said the cleanout was one of the hardest parts of the process.

That’s understandable when you consider how much stuff a typical home contains. Researchers studying middle-class American households once counted 2,260 visible possessions in just three rooms of one home.

And every one of those belongings may eventually require a decision. Someone has to determine what family members want to keep, what might be worth selling, what can be donated, and what needs to be thrown away.

So it’s hardly surprising that nearly two-thirds of the people surveyed said they were either unprepared to handle the process or didn’t know where to begin.

It’s a Lot to Take On, Even if You Live Nearby

An estate cleanout costs an average of $1,250, according to estimates cited in the article, with especially large or difficult jobs costing $4,000 or more.

But the financial cost may be the easiest part to calculate.

Sorting through an entire home can take an enormous amount of time and energy. It’s not easy to set everything aside for days or weeks to go through every closet, box, and drawer when you have a job, family, home, and responsibilities of your own.

And if you live hours away or in another state, finding enough time to give the process your full attention can be difficult, if not impossible.

As a result, the process can linger for months, especially when emotions make it difficult to decide what should be kept or discarded.

Having siblings or other relatives who can help may lighten the workload, but it can also make matters more complicated. Disagreements may arise over who gets certain belongings, who is responsible for doing the work, or whether one person is doing more than everyone else.

It’s Not an Easy Conversation… But It’s a Conversation Worth Having

Talking to your parents about what should eventually happen to their belongings can feel awkward, uncomfortable, or even a little morbid. But avoiding the subject won’t make the eventual task go away.
Your parents may not be eager to discuss any of this. Then again, maybe they’ve been wondering how to bring it up with you as well.

Simply starting the conversation can make an enormous difference. It may lead to small but worthwhile progress over time, rather than leaving the family with one enormous task that suddenly needs to be handled.

Depending on your relationship and family dynamics, here are a few ways to begin:

• Start with a conversation, not a cleanout. Ask your parents whether there are belongings they want specific people to have or if there is anything valuable the family might not recognize. The goal isn’t to pressure them into getting rid of things. It’s to understand their wishes while they can explain them.
• Identify important documents. Knowing where financial records, property documents, insurance policies, wills, and contact information are kept can prevent an enormous amount of searching later.
• Encourage them to pass meaningful items along now. Your parents may enjoy seeing family members use and appreciate certain belongings. They’ll also have an opportunity to share the stories behind them.
• Tackle manageable areas gradually. One drawer, closet, or box at a time may not seem like much, but it can prevent every decision from falling on the family at once.
• Look into services that are available. Estate sale companies, appraisers, senior move managers, organizers, and cleanout services can help families sort, value, sell, donate, and remove belongings when the time comes.

These conversations aren’t always easy to bring up. But approaching the subject while there’s no immediate crisis gives everyone more time, control, and opportunity to make thoughtful decisions.

You may still need a dumpster someday. With a little planning, though, you might need fewer of them and have a much better idea of what shouldn’t go inside.

The post Nobody Wants to Talk About Who’ll Clean Out Their Parents’ House… But You Might Want To appeared first on Lighter Side of Real Estate.

If you ask younger adults what debt is most likely to stand between them and buying a home, many would probably point to their student loans.

It’s easy to understand why.

It costs a ton of money to go to college, and many students start their adult lives with a bill they’ll be paying off for years to come. And if you’ve ever been on the paying end of a student loan, it can seem almost impossible to put a dent in the balance even when you’re paying more than the minimum amount each month.

But according to a recent survey of mortgage loan officers, student loans aren’t the type of debt most commonly preventing first-time buyers from qualifying to buy a home.

Nope. The thing more likely to stand between them and buying a home is… their car loan.

When loan officers were asked which type of debt most commonly prevents first-time buyers from qualifying for a mortgage, nearly half (47%) said it was auto loans.

Credit card debt came in second at 27%.

Student loans were a distant third, cited by just 15% of respondents.

Owning a Car Isn’t Always Optional, But…

For many people, owning a car isn’t optional.

There’s a good chance you need one to get to work, run errands, have some fun in between all of the work… and, yes, eventually go look at houses you want to buy.

Obviously, first-time buyers can’t be expected to walk everywhere for several years just to improve their chances of qualifying for a mortgage.

But there can be an enormous difference between buying the transportation you need and buying the most expensive vehicle a dealership says you can afford.

Mortgage lenders pay close attention to a borrower’s debt-to-income ratio, which compares their monthly debt obligations to their income. Even if the borrower earns a steady income, has good credit, and consistently makes every payment on time, a sizable car payment can push that ratio beyond what a lender is comfortable with.

Ironically, being able to “afford” the car payment may make it more difficult to afford the home they want.

Whether You Buy or Lease, Keep Your Future Home in Mind

The biggest issue isn’t necessarily whether you buy or lease a car. From a mortgage lender’s perspective, either one can add a monthly obligation that affects how much you’re able to borrow.

The real problem is that car payments have a way of becoming permanent and tend to increase over time.

People often finance a car for five, six, or even seven years, only to trade it in before paying it off. Or they lease one vehicle and replace it with another when the lease ends. Along the way, they may gradually upgrade to newer and more expensive vehicles because the monthly payment still seems manageable.

If buying a home is something you hope to do within the next few years, it may be worth keeping a reliable car longer, choosing a less expensive model, or buying something modest with cash—assuming doing so won’t drain the money you need for a down payment, closing costs, and emergencies.

Before talking to the finance department at a car dealer, you might want to speak with a mortgage professional about how financing, leasing, paying off, or trading in a vehicle could affect your particular numbers.

A car may be an unavoidable expense. Just remember that how much you choose to spend on it each month could determine whether the next driveway you park in belongs to you.

The post Your Student Loans May Not Be Holding You Back From Buying a Home as Much as You Think appeared first on Lighter Side of Real Estate.

Real estate agents often joke about having to play the role of a couples therapist for their clients.

Most of the time, it simply involves helping them see eye to eye, or at least compromise, on the style of home they want, where it should be located, or even the paint colors in the houses they’re considering. But sometimes it involves deeper issues related to how they’ll live together or navigate certain family dynamics.

It’s not that agents are necessarily saving marriages (well, maybe once in a while!), so much as giving clients someone to vent to and get some helpful perspective from.

But they can only help you sort through issues they’re aware of.

And one thing you might want to make your agent aware of is whether your partner…wait for it…snores. Or perhaps eats chips in bed. Or watches an annoying TV show while you’re trying to sleep.

Because knowing that, or at least taking it into account yourself, could make the difference between living happily ever after in your new home and eventually turning to your agent for help selling it due to divorce.

Don’t Sleep On This…

Divorce is a strong word. It might even sound a little over the top when the issue is something as seemingly minor as snoring, eating chips, or watching TV.

But according to a recent survey of 2,000 American adults, 17% said they had ended a relationship entirely due to their partner’s disruptive sleeping habits. Another 6% said those habits contributed to their breakup.

Apparently, love may be patient and kind, but for roughly 1 out of every 5 people, that patience only goes so far when it comes to sharing a bedroom.

Of course, most couples aren’t going to break up over one bad night of sleep. But when the same issue happens night after night, exhaustion and resentment can spill into the hours when both people are awake.

Fortunately, the vast majority of people find a way to cope without ending their relationship. And 20% of those surveyed said they dealt with a partner’s disruptive sleep habits by simply sleeping in separate beds or bedrooms.

Should an Extra Bedroom Be on Your Wish List… or Must-Have List?

Couples tend to have plenty of conversations about what they want in their next home.

They discuss the style of house they prefer, how many bedrooms and bathrooms they need, the location, the size of the yard, and perhaps even how they’ll decorate it.

But despite more people becoming comfortable with the idea of sleeping separately, it may not be something every couple thinks to discuss until it becomes an issue.

Couples who have lived together for years may already know exactly how much their sleeping habits clash. In fact, having enough space to sleep separately might be one of the reasons they’re moving.

But couples who haven’t lived together may not know what it’s like to share a bedroom every night. And even couples who already do may have never seriously considered whether sleeping separately occasionally, or permanently, could make them happier.

That doesn’t necessarily mean an entirely separate bedroom needs to become a must-have. Depending on your budget, the solution might be a home office that can accommodate a daybed, a finished basement, a den, or another flexible space. Perhaps it simply means having somewhere one of you can retreat to when snoring, sickness, conflicting schedules, or a midnight potato-chip craving makes sharing a bed less than ideal.

The point isn’t to predict problems or plan for your eventual “sleep divorce.” It’s simply worth having a frank conversation about how you both sleep and what options you might want your next home to provide.

You may even want to loop your real estate agent into the conversation. They’ve probably helped other couples navigate the same issue and may recognize solutions or possibilities in a home that you wouldn’t have considered.

But, just like when they’re playing part-time couples therapist, they can only help with the issues they know about.

The post Why You Might Want to Tell Your Real Estate Agent If Your Partner Snores (Or Eats Chips in Bed) appeared first on Lighter Side of Real Estate.

Most things cost more when they’re brand new.

A new car typically costs more than a used one. New furniture costs more than something somebody is selling on Facebook Marketplace. And nobody expects to pay less for the latest phone than they would for last year’s model.

So it would be perfectly reasonable to assume a newly built home would cost more than one somebody has already lived in.

But that isn’t always the case right now.

According to a recent National Association of REALTORS® article, the median price of a newly built single-family home was actually slightly lower than the median price of an existing home during the first quarter of 2026.

The difference was only $1,400 nationally, so that certainly doesn’t mean new homes are cheaper everywhere. Real estate prices vary tremendously from one area to another.

But it does raise an interesting question…

How can builders possibly sell brand-new homes for less when building them has become so expensive?

They Need to Spend Money to Make Money… And a Lot of It

When you look at a newly built home, it’s easy to focus on the materials and finishes you can see.

But builders start spending money long before there’s even a shovel in the ground.

They have to purchase and prepare the land, obtain approvals and permits, complete engineering and environmental reviews, meet building codes, and carry financing costs throughout the process.

According to a National Association of Home Builders study cited in the NAR article, government regulations at the federal, state, and local levels add an average of $131,734 to the price of a new single-family home. That equals roughly 26% of the average new-home sales price.

And that’s before accounting for the labor and materials needed to actually build the house.

Builders are absorbing substantial costs before they ever have a home to sell. And while buyers need more affordable options, builders still need to make enough money to continue building the homes needed to help ease the housing shortage.

So How Are Builders Keeping Prices Competitive?

Builders can’t control every cost, but they can control what they build.

To appeal to affordability-minded buyers, many have begun building smaller homes on smaller lots, simplifying floor plans, and limiting the number of available choices. They may also use more economical fixtures and finishes instead of including higher-end features as standard.

That doesn’t mean the homes are poorly built. In many cases, they may meet newer standards for energy efficiency, technology, safety, and weather resistance that older homes do not.

But it could mean buyers are getting more of a blank slate.

A similarly priced resale home may already have mature landscaping, custom window treatments, upgraded flooring, built-ins, or a finished basement. A newly built home may come with fewer of those features because the builder is trying to keep the base price within reach.

Builders can also offer incentives individual homeowners usually can’t, such as mortgage-rate buydowns and closing-cost assistance. According to the NAR article, 62% of builders were using sales incentives in June, while more than one-third had reduced prices.

Those incentives can make a new home especially appealing to buyers who are more concerned about their monthly payment or cash needed at closing than upgraded countertops.

Make Sure You’re Comparing More Than Prices

The advertised price of a newly built home may look surprisingly affordable, but it doesn’t necessarily include everything buyers see in the model home.

Upgraded cabinets, flooring, appliances, structural options, and premium lots can quickly push the final price well beyond the advertised base price. Buyers may also need to budget for things an existing home already has, such as blinds, fencing, landscaping, or a patio.

On the other hand, an older home may eventually need a new roof, HVAC system, windows, or appliances. A newly built home may offer lower utility bills and fewer major repairs during the first several years of ownership.

Determining which one offers the better value requires more than comparing two listing prices.

And Hire Your Own Agent to Help You Compare Those Options

Builders play an essential role in solving the housing shortage, and many are finding creative ways to provide homes at prices buyers can afford.

But they’re also running businesses. Their sales representatives, preferred lenders, and design-center employees are naturally focused on helping the builder sell homes and remain profitable. There’s nothing wrong with that, but buyers should have someone equally focused on their interests.

So make sure to hire your own buyer’s agent to help you compare new construction with existing homes, evaluate incentives, identify costs that aren’t included in the base price, and determine which option offers the best overall value for your budget and priorities.

A brand-new home may actually cost less than an existing one in your area. Just make sure you compare everything that comes with each home—and everything that doesn’t—before deciding which one is truly the better deal.

The post How Can a Brand-New Home Cost Less than an Existing One? appeared first on Lighter Side of Real Estate.

If you’re a member of Gen Z and would like to buy a home someday, there’s a good chance you’ve already written off the possibility.

Rent, groceries, car payments, student loans, and just about everything else cost more than ever. And that’s before home prices and mortgage rates enter the conversation.

You don’t need anyone telling you how difficult it is. You already feel it. And it certainly doesn’t help when friends, family, the news, and social media make it sound like nobody can afford to buy a home these days, let alone someone your age.

So, it’s understandable if homeownership feels impossible.

But here’s a sliver of hope…

A record number of Gen Z buyers are proving it isn’t impossible.

Apparently… 1 in Every 5 Buyers Is Gen Z!

According to a recent ICE Mortgage Monitor report, Gen Z accounted for 20% of all purchase mortgage rate locks during the second quarter of 2026. That’s the generation’s largest share on record.

A mortgage rate lock temporarily secures a particular interest rate for a buyer while their loan is being processed. It doesn’t guarantee the purchase ultimately closed, but it indicates they were actively in the process of buying a home.

In other words, one out of every five mortgage rates locked by someone buying a home was for a member of Gen Z. They also accounted for nearly one-third of all first-time buyer loans.

Not that that isn’t surprising enough to hear given how people make it sound out there, but to put it in even more context, Gen Z is composed of people between the ages of 14-29 years old. The entire generation isn’t even of home buying age yet!

The Biggest Obstacle May Be Assuming It Isn’t Possible

One of the biggest obstacles potential first-time buyers face isn’t always their income, credit score, or savings.

Sometimes it’s simply assuming they won’t qualify without ever speaking to someone who can tell them for sure.

You may think you need a 20% down payment. You may assume your student loans automatically prevent you from qualifying. Perhaps you believe your credit needs to be flawless or that there aren’t any first-time buyer programs available where you live.

Those assumptions could stop you from taking the first step, even if you’re closer to being able to buy than you realize.

And even if you aren’t quite ready today, finding that out doesn’t make the conversation pointless. A knowledgeable real estate agent and reputable mortgage professional can help you understand what’s standing between you and buying a home.

You might find out that you need to improve your credit, pay down a particular debt, build more savings, or adjust the price range you were hoping to qualify for. That may sound discouraging, but knowing exactly what you need to work on is far more useful than vaguely assuming homeownership is entirely impossible.

No, the market isn’t easy for first-time buyers right now, and nobody should pretend otherwise. Buying may require patience, planning, and some compromises.
But difficult isn’t the same as impossible.

If owning a home is one of your goals, don’t rule yourself out based on what you’ve heard or how far away it feels. Find out what’s actually possible.

You may discover that homeownership is still a few years away.

Or you may discover that “someday” is closer than you think.

The post They Say Gen Z Will Never Be Able to Buy a Home. Apparently, “Never” Came Sooner than Expected. appeared first on Lighter Side of Real Estate.

Every year, on the third Saturday of July, millions of people celebrate National Toss Away the “Could Haves” and “Should Haves” Day.

OK… maybe not millions. But somebody probably does!

While it’s not exactly the kind of holiday most people mark on their calendars, it’s built around an idea that’s surprisingly relatable. We all have moments we wish we could do over.

Maybe you could have invested in a company before its stock took off. Maybe you should have kept that classic car instead of selling it years ago. Maybe you could have taken that job, started that business, or simply made a different decision somewhere along the way.

Real estate has no shortage of “could haves” and “should haves,” either.

In fact, one that’s been floating around quite a bit lately sounds something like this:

“Maybe I should have sold my house a few years ago.”

“Maybe I’ll just wait until the market gets better…”

If you’ve been paying attention to the housing market lately, you may have noticed that some homeowners are putting their houses up for sale… and then deciding to take them back off the market.

According to recent data, delistings have been on the rise as more sellers decide they’d rather wait than accept a market that isn’t quite living up to their expectations. In fact, they’re delisting at the highest rate since 2020, right around the time the pandemic began.

When you think about it, it’s not hard to understand why.

For several years, many sellers got used to homes selling almost immediately, multiple offers arriving within days, buyers waiving contingencies, and offers coming in above asking price.

But, as real estate markets tend to do, they’ve changed in many areas.

Depending on where you live, and the price range your home is in, buyers may have more choices than they’ve had in years. They may take longer to make a decision. They’re more likely to ask for inspections, repairs, seller concessions, or simply negotiate harder than they would have a few years ago.

For some homeowners, that shift is frustrating enough to make them think…

“Maybe I’ll just wait until the market gets better.”

And for some people, that may absolutely be the right decision.

Two Thoughts That Are Closer Than They Appear

What’s interesting is that the two thoughts we’ve been talking about are actually pretty close cousins.

“Maybe I should have sold my house a few years ago.”

“Maybe I’ll just wait until the market gets better.”

One is based on wishing you could go back and capitalize on yesterday’s market.

The other is based on hoping you’ll recognize the right time to capitalize on tomorrow’s.

They’re both completely understandable. In fact, they’re probably thoughts just about everyone has had at one point or another—not just in real estate, but in life.

The catch is that neither one is particularly helpful when you’re trying to decide what to do today.

After all, you can’t sell your house three years ago.

And no one—not even the smartest economists—knows exactly what the housing market is going to look like three years from now. Or any other number of years for that matter. You can only make decisions based on what the market is currently doing.

The Problem With Using Extraordinary as Your Baseline

It’s also worth remembering that today’s market isn’t necessarily a bad market for sellers.

In many parts of the country, home prices are still historically strong. In fact, if you ask many buyers how they feel about today’s market, there’s a good chance they’ll tell you homes are still too expensive and affordability remains one of their biggest challenges.

What’s changed isn’t necessarily that sellers have lost all of their leverage.

It’s that many of them have lost the extraordinary leverage they enjoyed just a few years ago.

But now your home may take a little longer to sell. You might not have quite as many showings. Your buyer may ask for repairs or seller concessions that would have been laughed off during the frenzy of the pandemic market.

None of those things necessarily mean it’s a bad time to sell. They may simply mean the market has become a little more… normal.

And normal can feel disappointing when you’re comparing it to one of the strongest seller’s markets in modern history.

Every Market Creates a Few “Should Haves”

One of the interesting things about real estate is that every market eventually becomes the one somebody wishes they’d taken advantage of.

Looking back, it’s easy to find a market where you wish you had bought, sold, or invested. The challenge, of course, is that nobody knows which market people will be saying that about until years later.

Will some homeowners who decide to wait ultimately be glad they did? Absolutely. Every seller’s situation is different, and for some, waiting may prove to be exactly the right decision.

But chances are, this market will also become one that at least some homeowners eventually look back on and say, “I probably should have sold then.”

The only problem is that none of us knows which market that will be until we’re looking at it in the rearview mirror.

That’s why “could haves” and “should haves” usually aren’t the best guide when making real estate decisions. They only show up after the fact.

If you’re debating whether to sell now, wait a while, or even relist a home you recently took off the market, one of the smartest things you can do is have a conversation with a knowledgeable real estate agent. They can help you evaluate your local market, your personal situation, and your long-term goals so your decision is based on today’s realities—not yesterday’s regrets or tomorrow’s unknowns.

And if nothing else, perhaps National Toss Away the “Could Haves” and “Should Haves” Day is a good reminder that yesterday’s market is gone, tomorrow’s market hasn’t arrived, and today’s market is the only one any of us actually gets to make decisions in.

The post Thinking About Selling Your Home? It Might Be Time to Toss Away the “Could Haves” and “Should Haves.” appeared first on Lighter Side of Real Estate.