When you’re buying or selling a home, hearing the words “appraisal gap” can make you shudder. An appraisal gap can make the difference between a successful sale or the deal falling through completely. But how does an appraisal gap happen and what can you do to avoid it as a buyer or seller?

When you put your home on the market, you list it at a certain price. Let’s say you put it on the market for $350,000. Then, when a buyer wants to purchase the home, they’ll make an offer—let’s say they offer $360,000. If they’re financing, their lender will order an appraisal of the home during the closing period.

An appraiser will come look at the home and determine its fair market value. An appraisal gap occurs when the home’s appraised value is lower than the buyer’s offer.

In this example, let’s say that the home’s appraised value is $340,000, $10,000 less than the buyer’s offer. Lenders don’t really like this. Why? Well, if you were to default on your mortgage and be unable to pay the bank back, they wouldn’t be able to recoup their investment. Because of this, banks typically won’t give you more money than what the home is worth. Often, this gap causes the offer to fall through.

But there are some things you can do in this situation as a buyer. First, you can write an appraisal gap guarantee clause into the purchase contract that says you’ll pay a predetermined amount above the appraised value. You also have the option to pay the gap in cash. In our case, you’d have to pony up $10,000 to give to the seller. You could also renegotiate with the seller on price and try to get the purchase price closer to the appraised value. And as a last resort, you can walk away if you have an appraisal contingency in the contract.

You’ll obviously want to avoid this as a seller, too. It’s good to keep in mind that only buyers with financing will have this issue with the bank, which means that cash transactions can go more smoothly.

Appraisal gaps can be bad news, but if you’re educated and prepare for them, they aren’t anything to be afraid of.

It’s officially fall! I just love the crisp days, falling leaves, and all the fun activities that fall brings. And it’s also a great time to get your house prepped for the winter. A little bit of fall home maintenance can make your holidays way less stressful. Here’s what I recommend.

1. Check for air leaks before the cold sets in. A really good way to have a sky-high heating bill is to have a leaky home. Check your weatherstripping and the caulk around your windows and doors. Repair any leaks.

2. Wrap your outdoor faucets and any exposed pipes to avoid freezing. A few cheap wraps can save you from an expensive repair in freezing weather. 

3. Check the furnace. Before the cold really sets in, make sure your furnace is up to task. Pull out its filter and clean or replace it for maximum efficiency.

4. Get the fireplace ready. There’s nothing better than a cold night spent around the fire, maybe with a hot cider. Check your chimney and sweep out the flue, and stock up on fire wood for the cozy nights ahead. 

5. Check your roof. Can it withstand another year of winter rain and snow? If not, get it replaced. Bonus: if you plan to sell in the near future, a new roof is a huge selling point. 

6. Clean out your gutters. Avoid a messy surprise and get your gutters clear of any debris before the winter weather hits. I recommend doing this one after the trees drop their leaves. 

7. Check your safety equipment. Make sure your fire extinguisher is in working order. Check the batteries in your Co2 and smoke alarms so you’re not rudely awakened on a holiday night. 

8. Clean the carpet. The milder, dryer days of autumn make it an optimal time to clean.

When you’re making the biggest purchase of your life, buyer’s remorse is the last thing you want. But it’s something so many home buyers face. Here’s how you can avoid it. 

1. Get clear on your non-negotiables. Everyone has those things that they have to have in a house. Maybe for you it’s two bathrooms or a backyard big enough for your dogs. When you’re making your needs vs wants list, really decide what you have to have. What would you be SO disappointed about if you didn’t have it? What would really impact your lifestyle? Write it down and bring it to your agent. 

2. Make a list of deal breakers. While we focus a lot on what you want in a house, it’s equally important to understand what you don’t want. Would you hate living next to a busy street or in a house with a traditional layout? Make a list of your deal breakers and watch out for them on your walkthroughs.

3. Understand what you can afford. Some buyers end up loving their home but majorly regretting their giant mortgage. While you may be pre-approved for a certain loan amount, you don’t have to use that as your budget ceiling. Making your budget smaller than the pre-approval amount is totally acceptable.

4. Pay attention to the neighborhood. The area you live in can have such an impact on your life, especially if you end up not loving it. While you’re scouting out properties, talk to the neighbors and get a feel for the vibe of the area.

5. Work with a great real estate agent. Your agent will be able to steer you away from poor investments and will work tirelessly to find you the best property possible. Plus, they’ll have connections to good inspectors who can make sure that you get a good home. 

As you can see, the cure to buyer’s remorse starts way before you ever buy the house. With some careful planning and a great agent by your side, you’re sure to make a great decision.

Kitchens sell homes, it’s true. But bathrooms can really impact a buyer’s perception of the home. It’s always so funny to me when I show a house and the kitchen is beautifully updated, only to have the bathrooms show the age of the home. 

Instead of letting your bathrooms date your home, age-proof them with some easy updates. 

Spruce up the shower. Install a handheld showerhead to get the most mileage out of the shower. Not only will it make cleaning a breeze, but it’s also so helpful if you have kids or pets. And if you’re doing a shower remodel, think about adding a shower bench, too, which is a big pro for buyers.

Reconsider glass around the shower. Glass adds a clean look, but only when it’s clean. Glass is also prone to getting “glass cancer”, which looks like permanent soap scum, when harsh chemicals are used on it. If you live in an area with hard water, consider getting frosted glass or using another surface around the shower. 

Think about lighting. Lighting is so important in bathrooms, especially in the bathrooms where people will get ready for the day. You want a well-lit space, so add some can lights in addition to the vanity light. And natural light is always a selling point, so emphasize any windows or skylights. 

Use a long-lasting tile. There’s a ton of options when it comes to tile, but porcelain tile is made to last a lifetime. Porcelain tile also adds a timeless feel. If you want to spice things up a bit, you can use an accent tile in a different material. 

Create a slip-proof floor. Wet floors are a bathroom standard, so use textured flooring to reduce slipping. Instead of using a smooth tile, which can get super slick, use a textured tile like stone or a bathroom specific tile. 

There’s a lot that can go wrong during a renovation. But a lot of renovation mistakes can be easily avoided. Watch out for these four things the next time you do a renovation on your home. 

1. Ignoring the style of your home. When it comes to a home’s aesthetics, you have quite a bit of room to play. But putting a super modern kitchen in a little brick cottage or adding a farmhouse chic look to a slick modern townhouse will give any visitors (or buyers down the line) design whiplash. Go wild with design, but make sure it matches the key elements of your home. 

2. Putting aesthetics above functionality. Listen, I love a beautifully designed home as much as anyone, but sometimes a cool design is just not worth the sacrifice in functionality. When you’re planning your design, make sure that it both looks good and is usable.  

3. Making the kitchen too trendy. We are having a moment with blue and green cabinetry right now, and I love it! But at the same time, I know this trend isn’t going to last more than a couple of years. And that means there will be a lot of cabinet repainting to be done. When you’re renovating a kitchen, or any area, keep the bones timeless and add in trendy details that are easy to change. 

4. Going with the cheapest option all the time. There are certain things that are worth spending money on, and a good contractor is one of those. Unfortunately, good contractors are usually not the cheapest. (Pro tip: I have some awesome contractors that I know do great work. Let me know if you want a connection!) Along with investing in a good contractor, you’ll want to avoid buying the cheapest materials for the job, especially if you’re renovating an area that will get a lot of use like a kitchen or bathroom.

A successful renovation should strike a balance between cheap and good quality, trendy and timeless, usable and pretty. And if you avoid these renovation mistakes, you’re sure to have a great experience that brings value to your home.

Can you believe we’re just 2 months away from the holiday season? Just a few more weeks before we whip up delectable holiday treats—yum! But before we get into the full swing of holiday cooking and baking, it’s probably time to do a little pantry organization. Follow these steps to get your pantry holiday-ready. 

1. Clean it out

Start your organization project by removing everything from your pantry. This is a great time to get your little helpers involved—they can tackle the lower shelves while you clean out the top. Once you get all of the items out, wipe down all the shelves and sweep the floor. Right now, you want to focus on creating a blank canvas for your pantry, so say goodbye to dust and grime. 

2. Sort through it all

Next, sort through all of your pantry items. Toss out anything out of date, and donate the items that are just taking up space. Remember: there’s no point in keeping things you aren’t going to use. This goes for food items, appliances, and kitchen tools!

3. Repackage

If mismatched packages make it hard for you to organize, put your ingredients in cute containers or mason jars. Just make sure to label the jars so you don’t mistake your powdered sugar for baking powder. 

4. Organize

Once you’re ready to put items back in your pantry, group them together—baking ingredients with other baking ingredients, soups with soups, etc. If you have deep shelves, put seldom used items (like giant mixing bowls or drink dispensers) at the back and ingredients in front. Label each shelf so you remember where the items are located. 

And if you find yourself prone to expired canned goods at the back of your shelves, think about getting a few can organizers to keep everything visible and in rotation. 

In just a few simple steps and with just a little time, you can get your pantry ready for the coming months and make it way easier to use. 

Garages get cluttered fast, especially after an eventful summer season. Now is the perfect time to organize your garage before the colder months to make it a super usable space. 

1. Declutter. 

To truly organize a space, you have to get rid of the clutter. Pull everything out and get honest with yourself about what you really need to keep. Sell, donate or toss any items you don’t regularly use. Pay special attention to your outdoor and summer equipment, and fix anything that needs to be repaired. Pro tip: If you find yourself with a lot of items to get rid of, this is a great time for a yard sale!

2. Categorize. 

Once you’ve pared back and have the things you want to keep, categorize them. 

Put your cleaning supplies with cleaning supplies, tools with tools, recreation equipment with your outdoor stuff. Categorizing will help limit the clutter because you’ll know exactly where everything is.

3. Contain.

After categorizing your items, put the smaller items in stackable storage containers and LABEL them. I love the black storage boxes from Costco because they’re so sturdy, but clean bins are also great because you can see exactly what’s in them. 

4. Put away. 

Your garage might not have a lot of built in storage, so take advantage of the vertical space. Wall pegboards are cheap and easy to use, making them perfect for tools and outdoor gear. Open shelves made from steel are great to store bins and heavy equipment. And if you want to keep hazardous tools or chemicals away from kids and pets, look into child-safe closed cabinetry. If you have the budget, overhead ceiling racks are an amazing way to reclaim the floor. They’re like shelving for your garage ceiling and are perfect for storing seasonal items like decorations or camping gear. 

Your credit score is a numerical representation of your creditworthiness. In other words, it’s a number that estimates how likely you are to pay back your debts. Credit scores range from 0-850, with 850 being a perfect score. Those often invisible numbers control so many facets of our lives—from the car we buy to the apartment we rent to the mortgage we qualify for. 

If you want to buy a house or refinance your current mortgage, you need a good credit score, which is anywhere from the 600-850 range. And if you’ve worked hard to get your credit score up, you want to protect your score and keep it as healthy as possible. Here’s how.

1. Keep an eye on your score. Sign up for credit score alerts through your bank or apps like Credit Karma. You can check every couple of weeks and see how your credit is doing, and you’ll see it increase over time, which is always a good feeling. 

2. Set up autopay on your monthly bills. Even the best of us forget a credit card payment or a utility bill sometimes. Set your accounts up with autopay so you don’t have to worry about a late payment tanking your score. 

3. Stay away from the top of your credit limit. You should only use up to 10% of your credit limit on credit cards—any more than that will decrease your credit score. Pay your cards off monthly to avoid a hit to your score.

4. Keep your old cards open. The average amount of time you’ve had a credit card or loan open for affects your credit score. So, the longer you’ve had a line of credit, the better. Keep those old cards open by using them every so often. 

5. Be strategic with the cards or loans you open. Don’t open any new cards or get a new car loan when you’re trying to buy a house because it will temporarily lower your credit score due to inquiries and account history. 

Your credit score is so important when it comes to qualifying for a great interest rate, so make sure you keep on top of it and protect it so you can get the best deals possible.

Refinancing is a scary thing, but it doesn’t need to be, and it can save you a ton of money. Basically, when you refinance, you replace your current mortgage with a new one, with a possible lower interest rate. A lower interest rate can save you money and can help you pay off your mortgage faster. Plus, through a refinance you can also access up to 80% of your home’s value, less the outstanding balance of your mortgage.

EX:

$300,000.00       x                        80%                       –              $200,000.00                 =.            $40,000.00

(home value)               (max loan-to-value ratio)        (max loan-to-value ratio)                  (available equity)

Now, interest rates change depending on market conditions and on your credit score. So, if you bought a house with so-so credit when interest rates were high and now you have an amazing credit score, you’re a great candidate to refinance for a lowered interest rate. When it comes to deciding to refinance or not, the general rule is that if you can lower your interest rate by 0.75% or more, you should refinance. There are several online calculators that will help you estimate how much your refinance rate could be that are worth checking out. 

But be aware that refinancing is not a free process. There are several moving parts—from an appraisal on your home, to lender fees, to legal costs, and the possibility of a mortgage prepayment penalty. If you’re interested in refinancing, first check your credit score. If it’s great (in the 620-800 range), then you’re good to move ahead. If it needs a little TLC, work on paying down your debt and making payments on time. Your credit is a big factor in getting a good interest rate, so you’ll want to get it as healthy as possible.

Once you’re ready to start the refinance process, talk with your current lender and see what they can do for you. Once you have their offer, meet with a few other lenders to see if they can do any better. As soon as you find the best offer (aka lowest interest rate), lock in the offer, so the interest rate doesn’t have a chance to increase. *Remember if you are switching lenders there may be a discharge fee ranging from $0 – $400, depending on the province your in and the lender you’re currently with.*

When you refinance your mortgage, you’ll need to consult with a real estate lawyer. Your lawyer will review your mortgage loan, its terms/ conditions, register the new mortgage, and conduct a title search to make sure no leans have been made against your property. It’s the lawyer’s job to facilitate the entire financial transaction between you and the lender. Legal fees for a refinance typically range between $700 and $1,000.

If you’re switching lenders, and your mortgage balance is greater than $200,000, your new lender may pay your legal fees for you. So, before you know it, you could have a new mortgage and a lower interest rate. 

Have any questions about refinancing or want connections to a great lender? Just call me or reply to this email.

With kids heading back to school and families getting ready to settle into the rhythms of fall (how is it here already?!), it’s the perfect time to declutter. Even though you probably don’t have the time to dedicate to a whole house declutter, you can make real headway with just 15 minutes. Set a timer, put on an energizing playlist and try one of these fast decluttering mini-projects.

Kitchen
Go through all your food storage containers and throw out any containers that are cracked, melted, or otherwise unusable. Also throw out any lids or containers that don’t have a mate. Check the expiration dates of the condiments sitting in the door of your fridge, and throw that mustard that’s older than your youngest child right in the trash. 

Take an inventory of your utensil drawer or holder and get rid of any utensils that are past their prime. 

Bathroom
Tackle your shower and get rid of any products that are expired or that you just don’t use. Bathrooms are generally scarce on storage, so you don’t want to waste any of your space storing an unused body scrub you got from your mother-in-law. Next, go through your medicine cabinet and/or makeup bag. Chuck any expired medications and products, and get rid of the stuff you never use.

Laundry Room
Have you looked at your laundry room shelves recently? No? Well, there’s probably an old, used up bottle of detergent or fabric softener hanging around up there. No shame, everyone has one. Now’s your chance to get rid of it. 

Entryway
You probably have a table or an area on the counter where you put things after you get home. Go through this area and get rid of any loose papers, old magazines, or random junk. Bonus task: go through the keys laying around to make sure you still need all of them.  

With just a few minutes, you can make a big difference in the feel of your home. Finding the motivation to declutter is hard, but once you do it, you’ll feel so much lighter. And when you break decluttering into mini-projects, it makes the task much more manageable and fun. 

And of course, decluttering is one of the first steps in getting your home prepped for sale. If you want to get started with the rest of the home selling process, send me an email or call.

With summer winding down, it’s time to get back in the swing of work and school. And since so many of us are spending more time than ever working and studying at home, it’s time to give the home office a little reno. You’ll actually want to work in it, and big bonus, buyers are still looking for homes with offices, so staging will be a snap when you get ready to sell.  

Here’s a few ideas to turn your home office into the ideal setup:

1. Change your desk top: If you’re still working off a card table, you’re definitely due for an upgrade. There’s a whole world of desk tops out there—from glass to wood-look composites to hard wood—that you can mix and match with legs of your choice. I’m loving hairpin legs for a mid-century vibe right now.

2. Keep lighting in mind: Good lighting can make the difference between a major headache and a great place to focus. Add some lamps to increase the ambient light and get some sheer curtains to take advantage of any natural light from nearby windows.  

3. Add plants: Studies have shown that plants actually increase focus and productivity, so add a little greenery to your workspace with a nice pothos or an easy to care for spider plant.

4. Use a room divider: If you don’t have a room dedicated to your office, a room divider can be a lifesaver when it comes to keeping distractions at bay. Plus, it can double as an awesome Zoom background. 

5. Curate your background: Instead of using a plain wall as the backdrop to your desk, spice it up with some framed art, shelves to show off your collectibles or plants, or wall decals to add some visual interest. 

A nice home office will make working and studying so much more pleasant, and it doesn’t take a lot of time or money to do. And, if you’re getting ready to sell soon, a home office will definitely appeal to buyers. 

Want to know more about getting your home ready to sell so you can take advantage of our super competitive market? Just reply to this email, and I’ll tell you how.