Real Estate
Ask the Expert
Home prices have been rising fast. Should I apply for a preapproval that’s more than I think I need?
There’s no question we’re in a hot market right now that shows few signs of cooling off. However, the fundamental rule still applies when it comes to getting a mortgage: Stay within budget.
The more prep work you do ahead of time, the better. This serves the dual purpose of helping you move quickly when needed, as well as acting with a cool head. Before you even start looking at homes, figure out your finances and calculate how much you can and want to spend on a mortgage. Remember to factor in insurance, taxes, and a rainy day fund for repairs.
Then you’ll apply for your preapproval. This is the bank’s letter attesting to how much you can afford.
A quick note about preapproval versus prequalification letters: The prequalification is typically based upon self-reported information, while the preapproval involves the bank checking your credit score and verifying bank and income records. Although some institutions may use the terms interchangeably, the preapproval generally carries more weight — and in a hot market, this can give you an edge when making offers. Remember that neither is final, however. Your loan will go through a final round of verifications and include an appraisal and inspection before it becomes official.
Back to how much you should apply for. A common rule of thumb says to keep your mortgage payment — including principal, interest, taxes, and insurance — at or below 28 percent of your gross monthly income, and your total debt service below 36 percent.
When you stick to this formula, you make things easy on yourself. Now you’ve got a definitive number in mind, and you can shop for houses that fit your budget rather than the other way around.
Jenspiration
Real Estate and Community News (July/August 2022) with Jen Avery, REALTOR
COMMUNITY NEWS:
- Check out Facebook page to read about a great mentor and resident story.
Humane Society of Warren County
- Waggin’ for Dragons
August 6, 2022 – River Access at the Front Royal Golf Course
We brought in over $19,000 for the Humane Society, Chamber of Commerce, and United Way. Rugged Terrain Crossfit WON the boat race bringing home the trophy! The Rotary River Rats won Team Spirit and Most Funds Raised awards.
- After Hours will be hosted by City National Bank this month on August 23. Come out at 5:30pm to enjoy networking, snacks, and maybe a little live music by House of Hope resident Ed McCurdy!
REAL ESTATE:
Warren County Market Report for July 2022 with Jen Avery, REALTOR
Watch this video for a quick summary of Warren County real estate for July 2022. There has been a jump in listings.
In general summary:
- New Listings are UP 17.2%
- New Pending DOWN -19.63%
- Closed sales are DOWN -19.2%
- Average Median Sold $320,000
- Average Days on Market 23
*If you would like a copy of this report emailed to you, please send request to jenaveryrealtor@gmail.com.
Resource: July 2022 Market Stats by ShowingTime
Bright MLS: Statistics calculated August 2022
Jennifer Avery, REALTOR® “Your Happy Home Expert!”
BPOR, SRS, CNE, E-Pro Certified | Licensed in VA
jenaveryrealtor@gmail.com | 540-683-0790 | www.jenaveryrealtor.com
CRUM REALTY, INC| 318 S Loudoun St, Winchester VA 22601 | 540-662-0400
Real Estate
5 reasons you may be struggling to get home insurance
Insuring your home gives you peace of mind and may be required by your mortgage lender. However, sometimes insurance companies are reluctant to cover your property. Here are five of the most common reasons.
1. Claims history. Your personal claims history has a major impact on your home’s insurability. For instance, the more claims you’ve made in any of your homes, the less likely an insurance company will want to take on the risk of insuring you.
2. Criminal record. Did you know that having a criminal record can jeopardize your eligibility for home insurance? This is especially true if the crime is relatively recent and involves property damage.
3. Poor home condition. The condition of your home can impact its insurability. For example, insurers don’t like to take a risk on homes that have foundation issues, bad plumbing, old electrical systems, or inadequate insulation. You may also be denied home insurance if your property is in an area with a lot of crime.
4. Old home. Older homes are often more difficult to insure. This is especially true if the house is over 25 years old and hasn’t been updated.
5. Vacant home. Homes that sit vacant for an extended period are at a greater risk for theft, vandalism, and water infiltration. Therefore, some insurance companies don’t offer coverage for these properties.
If you’re having trouble insuring your property, contact an insurance broker. They can analyze your situation and recommend solutions.
Real Estate
Virginia’s housing market sees sharpest drop in sales since May 2020
According to the June 2022 Virginia Home Sales Report released by Virginia REALTORS®, there were 13,324 homes sold in Virginia in June 2022. This is 3,208 fewer sales than last June, a slowdown of more than 19%. This is the sharpest drop in Virginia’s housing market since the beginning of the pandemic.
Sales activity edged up slightly between May and June, up slightly over 2%, which is much lower than a typical May-to-June jump in sales. “The slowdown we’re seeing in sales is due to more buyers pressing ‘pause’ on their home search,” says Virginia REALTORS® 2022 President Denise Ramey. “The lack of inventory paired with the rise in interest rates have created a more challenging environment for home buyers.”
Even as the market slows, many localities across the commonwealth are still experiencing an increase in home prices. Statewide, the median sales price in Virginia in June was $397,315, nearly a 7% price gain over the same time last year.
“Buyers have limited options to choose from right now, and the low inventory levels are putting upward pressure on prices,” says Virginia REALTORS® Chief Economist Ryan Price. “There are still more buyers in the market than there are active listings. This supply shortage will likely keep prices rising, but as the market continues to cool, we expect price growth will ease in the coming months.”
The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full June 2022 Virginia Home Sales Report.
Real Estate
3 reasons to buy an intergenerational home
Intergenerational homes can take many forms, from a building where each person has their own unit to a large residence with shared common spaces. The idea is to bring together more than one generation under the same roof. Here are three reasons why this concept has been gaining in popularity.
1. Care for elderly parents
Many people are increasingly questioning the standard model within western society in which seniors live apart from their families. Stories of loneliness, neglect, and even abuse have prompted more people to take their elderly parents or grandparents under their wings.
2. Assist with everyday life
Living with your parents or grandparents comes with responsibilities. However, it also offers significant benefits. Young families can benefit from the experience of their elders, both in terms of practical knowledge and life lessons. Grandparents can also participate in the family dynamic by babysitting and helping with daily chores.
3. Ease family finances
As real estate prices continue to rise, intergenerational homes are an appealing option for young families who want to own their own place. In fact, cohabitation can be financially beneficial for both parties. For example, the mortgage payments and other expenses like groceries and transportation can be shared.
Of course, opting for this type of shared living arrangement can also lead to conflict. It’s therefore essential to think it through and establish rules to govern daily life.
Are you interested in buying an intergenerational home? Contact a real estate broker to discuss the possibilities.
Community Events
Real Estate and Community News (June/July 2022) with Jen Avery, REALTOR
COMMUNITY NEWS:
House of Hope
- 2 Rotary Grants Awarded:
- $1,500 Rotary Club of Front Royal – Computer systems to be installed and built for the men at the House of Hope.
- $500 Rotary club of Warren County – Graduation Baskets for the men at the House of Hope to include: Air Mattress, Sheets, Pillow, Laundry Basket.
- As an extra bonus, the following items have been donated by local businesses and individuals:
Free Scoop of Ice Cream (C&C Frozen Treats), Free Coffee (Daily Grind), 2 Movie Tickets (Royal Cinemas), Free Haircut (Mattie the Barber at Blake & Co), Bracelet (Beth Waller/SPACE & What Matters), Inspirational Cards, Taxi Ride (Front Royal Taxi), Golden Ticket (I Want Candy). Thank you to all of the local businesses who are donating these passes to help brighten the men’s day after graduation!
Humane Society of Warren County
- Waggin’ for Dragons
- August 6, 2022 – River Access at the Front Royal Golf Course
- Please join us in supporting three local non profits again this year at the Waggin for Dragons boat race on Saturday, August 6!
- Fierce competition is shaping up. Come join in the fun!! There is space for you to organize your own boat or join one of the existing boats. You don’t have to be an expert to have a good time. There is coaching and practice!
- Do explore teams and donate to your favorite: hswcevents.org/campaign/waggin-for-dragons
REAL ESTATE:
Warren County Market Report for July 2022 with Jen Avery, REALTOR
Watch this video for a quick summary of Warren County real estate for July 2022.
In general summary:
- New Listings are DOWN -20.8%
- New Pending DOWN -19.5%
- Closed sales are DOWN -26%
- Average Median Sold $363,000
- Average Days on Market 16
*If you would like a copy of this report emailed to you, please send request to jenaveryrealtor@gmail.com.
Resource: June 2022 Market Stats by ShowingTime
Bright MLS: Statistics calculated June 2022.
Jennifer Avery, REALTOR® “Your Happy Home Expert!”
BPOR, SRS, CNE, E-Pro Certified | Licensed in VA
jenaveryrealtor@gmail.com | 540-683-0790 | www.jenaveryrealtor.com
CRUM REALTY, INC| 318 S Loudoun St, Winchester VA 22601 | 540-662-0400
Real Estate
3 golden rules for painting your house before selling it
Repainting your home can increase its selling price. However, before you get out the rollers and brushes, here are three rules to keep in mind to optimize your investment.
1. Consider the entire property. Don’t forget to redo the outside of your home if the paint is peeling or faded. After all, this is what potential buyers will see first. You may also want to touch up the paint on your patio, fence, and shed.
2. Use neutral shades. Although you may love your yellow kitchen because it gives your home a Tuscan feel, remember that everyone has different tastes. Play it safe and stick to neutral shades that appeal to most people.
3. Be prepared. Don’t rush your paint job. Make sure you have enough time to complete the work before your house goes on the market. A sloppy paint job could deter potential buyers instead of drawing them in.
If you’re considering hiring painting professionals, do some research to gauge the quality of their work and consider how the additional cost could affect the return on your investment.
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