The American Dream (Home)

The American Dream (Home)     According to Investopedia, “The American dream is the belief that anyone, regardless of where they were born or what class they were born into, can attain their own version of success in a society in which upward mobility is possible for everyone.” For most Americans, this dream or belief spills over into home ownership. For decades in the United States, owning a home has been a hallmark of success, stability, and normalcy. From idealized images of a white picket fence, a tidy exterior with neatly planted shrubs, to highly stylized interiors, the idea of home as a symbol of success and personal refuge, the American dream home has been part of the fabric of the American dream itself. In June of 2022, The New York Times reported that nearly three-quarters of Americans placed home ownership above career, family, and college as a sign of prosperity. As a culture, we are obsessed with the idea. There are entire media networks devoted to buying, selling, decorating, and styling houses. Data shows that Americans spend between $5200-$9200 annually on “making a house a home.” This cost includes decorations, appliances, repairs, and painting. We trade our time for money in the form of work in order to send nearly 30% of what we earn to our housing expenses. We sleep at home. We work from home. We maintain our home. In nearly every area of life, our time, purchases, and attention is never far from where we live. If our identities as Americans are so tied to our homes and the idea of the American dream, how then do we navigate the American dream home in 2023 when home affordability and home ownership feels out of reach for many? Below are three tips to keep in mind. Get Your House In Order “Getting your house in order,” is simply another way of saying, arrange your affairs in order to solve your problems. If you are looking to purchase a home, getting your house in order–literally and figuratively is key. If you have a house to sell, clear it out, clean it up, and make sure it is in fully operational mode. Make small repairs, paint, declutter it, and make it ready to showcase at its best. In many areas, supply is not outpacing demand and homes are still selling at top dollar. If you think you may be listing your home soon, help it stand out among the others. In addition to getting your physical space in order, consider also getting your financial house in order. With interest rates continuing to rise as well as federal mortgage rules changing, there is no better time to make sure your savings or down payment account is robust, your credit score is at its best, and your pre-qualification or pre-approval is ready to go. Rethink Your Options and Priorities Whether the trends of the housing market or the overall economic situation in this current moment have you prolonging your dream to own a home or you are simply waiting for just the right moment to enter the real estate game, now might be a good time to reassess your must-have list for your dream home. Could you do with a smaller square footage footprint? Does intergenerational living make the most sense? Is your radius outside the city limits able to be widened? How about one less bathroom or bedroom? Can you live with an outdated, but functional kitchen after all? Perhaps settling into a more realistic view of affordability and opportunity is a sign of wisdom in 2023. Home Is a Place, But Home is Also a Feeling Finally, as you consider the American dream and the American dream home, keep in mind that the home you have likely has more to offer than you might realize. As you seek to find contentment in waiting for the home of your dreams, focus on what your home does have instead of what it doesn’t. Make a list of everything you love about your home. Keep your home clean and tidy, taking care of what you have. Stay off of social media where Instagram and Pinterest images stir up your envy. Focus a lot less on how your home looks and focus more on how your home feels. Rearrange your current furniture. Pull out your cozy blankets. Light the good candles. Savor moments with the people you love.

Have New Home Construction Costs Finally Stabilized?

Have New Home Construction Costs Finally Stabilized?     Over the past three years, home building construction costs have been higher than normal. In 2022 alone, there was a 14% increase in material and labor costs alone. Between labor shortages, production delays, supply chain issues, and inflation consumers have experienced high prices across the board. How are things looking for 2023? According to the National Association of Homebuilders (NAHB), construction cost increases will return to the historical average of 2% and 4% in 2023. It is also expected that inflation will begin to taper by the beginning of the year and return to near-normal levels by the end of 2023. What are the signs that costs are stabilizing? Homebuyers and builders are seeing stabilization in supply chain issues like decreased concerns with bottle-necked imports in many markets. There has also been an easing in global restrictions on materials like lumber and steel. Additionally, rising interest rates have helped to slow down cost increases. How can I better prepare for a home building project in 2023? Communication: plan to communicate openly, honestly, and frequently with your builder along the way. Figure out the most efficient form of communication and follow it. Keep records of emails, receipts, and timelines. Budget: even if you think you already have a good idea of your costs to build, most of the time budgeted costs and estimated timeline are easy to surpass. Know your numbers and prepare to make adjustments along the way. Flexibility: one of the most important things to keep in mind if you are building a home is flexibility. Being flexible will allow your builder to freely shift timelines around material and labor availability. It will also allow the homeowner to feel less stress if you know going into the whole thing that flexibility will be required. With so many moving parts and pieces, much of the building project relies on aspects outside the homeowner’s (and often, the builder’s) control. Planning: while flexibility is key, it is also important to develop a plan for the inevitable pivot you may need to make. What do you do when a material or finish you’ve picked is no longer in stock? How will you adapt your move in when the completion date may get pushed? What if significant weather prolongs your builder’s progress? A plan is there to help you navigate changes as they occur in real time. Should You Buy a New Home or a Previously Built One? U.S. News and World Report summarizes the issue best. According to a November 2022 report, “Buying a home is a dance of many decisions, from the most basic questions, like how many bedrooms and baths, to far more complicated considerations, like what kind of kitchen works best for your lifestyle. The biggest decision many homebuyers face, though, is whether to buy an existing home or to choose a home that’s under construction or freshly completed.” There are advantages to either option, particularly if the price difference isn’t enough to significantly impact your overall budget. If buyers want a particular home and don’t mind waiting for it to go up, new construction can be a way to make that dream a reality. But, if homeowners need to move soon or are looking for a home in an area that’s largely built up, an existing home might be the best option.

Does "Location, Location, Location" Still Matter in 2023?

Does "Location, Location, Location" Still Matter in 2023?     An often repeated mantra of real estate is “Location, Location, Location.” This phrase has long held a connotation that the single greatest factor of importance when buying or selling a home is its location. Are buyers motivated by the square footage of a home? Its layout? Its age? Its quality of finishes? Its size? Its neighborhood amenities? The answer to each of these questions? A resounding, “Yes!” However, the idea that location trumps these criteria even in 2023 is one that deserves consideration. With the demand for home purchases still outpacing supply in most markets, buyers are finding that they sometimes have fewer options than they’d like. Why does location matter so much? Below are five factors that buyers rank as the top reasons location still reigns supreme in real estate decisions. Accessibility One reason that location continues to drive real estate decisions is simply a matter of convenient access to services and transit/transportation opportunities. Buyers cite accessibility to work, entertainment, places of worship, and proximity to restaurants, grocery stores, and medical treatment as a top priority. Safety Another reason that rates high on a buyer’s list of location preferences is the crime and safety factors of an area. Most buyers choose to avoid risks of burglary, theft, and other disturbances. Sites like Neighborhood Scout and Family Watchdog can often give insight into what crime ratings in a particular area are like. Schools For those homebuyers with children of school age, location to schools is of great concern. School ratings and reputations can be a driving force for a particular neighborhood’s appeal. Sites like Niche can offer information, ratings, and scores on area schools on topics like academics, teachers, diversity, sports, administration, clubs, and activities, as well as extensive user reviews. Resale The location of your home can have major implications for the future value of the home. Some neighborhoods and communities simply appreciate faster than others. Investopedia reports, “Homes in cities with little room for expansion tend to be more valuable than those in cities with plenty of room. Consider the accessibility, appearance, and amenities of a neighborhood as well as plans for development. A lot's proximity to things like busy roadways may make it less desirable for resale.” It Is the Only Thing That Can’t Be Changed Finally, location is really the only component of a home that cannot be changed. You can add on square footage. You can remodel or renovate a home’s layout. You can update or remodel out-of-date finishes or fixtures. Although dramatic and of significant expense, you could even bulldoze the house and start over from scratch with a new build. The structure of a home can be adapted to fit your changing needs. The location, however, cannot.   A home’s location and how close or far away it is from important places and important people is of the utmost importance. Location impacts every area of life outside the home itself. Social and recreational activities, commute, proximity to needed goods and services– it all matters. If you are relocating and don’t know the area well that you plan to relocate to, experts agree there are essentially six components to a good home location: proximity to community, land/lot size, neighborhood, development, amenities, and appearance. Consider your budget, cost of living in the area, job opportunities, big city vs. small town vs. rural area, culture and entertainment, climate, public transportation, school availability (including colleges and universities), and your future needs.

What is a Resource Efficient Home?

What is a Resource Efficient Home?     A resource-efficient home is best described as a home that sustainably uses the Earth’s limited resources while at the same time, minimizing environmental impact. Think, repair, re-manufacturing, recycling, maintenance, and more eco-friendly home design. There are a variety of definitions of what a “green” home truly is. A widely held and accepted definition includes the planning, design, and construction of a home with considerations of energy use, water use, material selections, site locations, and indoor environmental quality features. Green, or resource-efficient, homes tend to use less energy and smarter resources in order to provide a healthier home for you and your family. The benefits of resource-efficient homes are usually grouped into three areas: health, savings, and value. Health Resource-efficient homes aim to provide lots of natural light, safe building materials, and clean indoor air. Green Home Guide reports, “With better products, such as low-emission materials, a radon mitigation system, and sealed combustion appliances, certified green homes can have a positive impact on your family's health. Improved heating, ventilation, insulation, and air sealing also contribute to reducing risks and symptoms of respiratory disease, asthma, cancer, cardiovascular disease, depression, stress, infectious disease, and more.” Savings Another benefit of a green or resource-efficient home is the long-term savings it can offer. By using environmentally friendly home building materials, often monthly utility bills are lowered due to a reduction of energy and water consumption. The United States Green Building Council (USGBC) shares that year-over-year, spaces built with green materials have reduced maintenance and usage costs by nearly 20 percent. Additionally, the resale of a resource-efficient home can see upwards of an eight percent increase in resale value. Value In addition to the monthly savings costs on utility bills, another way a resource-efficient home can offer value lies in the other incentives it may qualify for. From special homeowner’s insurance discounts to tax breaks, the added value of a green home can be a great benefit to a homeowner. Some incentives apply for new construction, others for remodels, and some for both. Many states offer an incentive for a wide variety of energy efficient and energy renewable technologies, such as heat pumps, furnaces, boilers, central air conditioners, building insulation, doors, siding, roofs, solar water heat, geothermal heat pumps, cool roofs, LED lighting, and more. Be sure to check with a qualified tax professional to maximize the value you could gain from one or more of these technologies. LEED Certifications One way for homebuyers to know what they are getting in terms of environmentally and responsibly built green homes is to look for a LEED certification. In order for a home to qualify for a LEED certification, the home earns points by adhering to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health, and indoor environmental quality. According to the National Association of Realtors, resource-efficient homes and those with the LEED certification are designed and constructed to provide a safe, healthy, and sustainable place to live. They provide cleaner indoor air, save on energy and water, maintain their value over time, and prioritize the use of materials that promote health and enhance resilience.