Dom McShan, REALTOR® | Your Astute Agent

The Do’s and Don’ts of Buying Vacant Land

Mon, 14 Aug 2023 12:32:47 -0700

Building a custom home is hard work that is rewarded when you move into the home of your dreams. The first step is finding the perfect lot to build on. Before you purchase a lot to build on, be aware of these do’s and don’ts.

Do work with an agent to find the land. Your real estate agent can help to research the property and make sure that you are making a safe investment. Buying vacant land is different than buying a home; work with an agent who knows what questions to ask and knows how to negotiate on your behalf.

Do have your finances in order. You will need to have proof of funds for the purchase amount, so make sure you understand what you can afford to spend on your lot.

Do find out what utilities service the area. If you are looking outside of a developed area, you need to know what utility services are available already, or if any infrastructure needs to be added.

Do find out if incentives are available. In areas where natural disasters have occurred, local governments may offer incentives for building where previous homes have been destroyed.

Do visit the tax assessor’s office. The tax assessor will be able to tell you the estimated value of your lot as well as your projected property taxes.

Do price the neighborhood. Your agent can help you with a market analysis of the surrounding homes. You don’t want your home and land cost to be vastly higher than the rest of the...Read More

6 Products that Automate Your Cleaning

Tue, 08 Aug 2023 09:58:54 -0700

Your free time is precious, so it can be frustrating when you spend hours cleaning only to realize you’ve missed a spot or two. Like most people, you may find it hard to muster the strength and energy to complete this necessary but mundane task.

Thanks to technological innovations, there are hands-free, automated solutions that can clean for you. If you use the must-have cleaning tools listed below, you can dedicate more time to what you enjoy and less time to chores.

Robotic vacuum

Robot vacuums are by far the most popular automatic cleaning tool. Not only does this robot run on a cleaning schedule, but it can clean in hard-to-reach places—and some robot vacuums even empty themselves after each cycle. The sensors on robot vacuums prevent them from running over objects on the floor or falling down flights of stairs. Most robot vacuums even provide an app where you can set a schedule, tell your robot to clean or go back to its dock, and get updates on any required maintenance.

Robotic mop

Like a robot vacuum, a robot mop has similar perks. However, instead of bristles, it uses...Read More

Understanding Home Equity

Sat, 29 Jul 2023 12:59:00 -0700

Home equity…Everybody wants it, but what exactly is it, and how do you get it?

Equity represents the degree of ownership an individual or entity has in an asset after subtracting any debts against the asset. To say someone shares equity in a company means they would share in any assets remaining after all debts are accounted for.

For example, if your business has sold $500,000 worth of product this year, but you have rent, operating expenses, and a business loan payment totaling $400,000 for the year, you have $100,000 of equity in your business. Equity changes as the value of your assets and debts change.

Home equity works the same way. When you take out a mortgage to purchase a home, your home is collateral on the mortgage loan, so the outstanding mortgage principal must be deducted from the value of the home to determine your home equity.

In most cases, you make a down payment when you purchase your home. That down payment is your initial home equity. If you pay a 20% down payment on a $200,000 home, you have $40,000 equity when you close on your purchase.

As time goes on and you continue to pay down your mortgage principal, your equity grows. Usually, the longer your own your home, the more equity you gain because you are paying down your mortgage. However, any debts you take on using your home value as collateral, such as a second mortgage or home equity line of credit (HELOC,) decrease your home equity.

The changing real estate market also influences your equity. If you paid $200,000 for your home, and two years later the homes in your neighborhood start selling in the $400,000 range, your theoretical equity increases. (Theoretical because you don’t realize your home equity until you sell your home and pay off all debts against it.) You can also...Read More

8 Reasons Why Real Estate is the Best Investment

Fri, 14 Jul 2023 10:05:00 -0700

Real estate has long been considered a solid investment for many reasons. It is a relatively safe and easy way for people to build wealth beginning with a small amount of money. If you are interested in investing in real estate, I’d be happy to help you find the right properties.

Here are some of the ways investing in property can help you build an investment portfolio.

1. Real estate investments can provide you with a reliable and steady cash flow. Investing in rental properties is relatively easy as expenses are predictable and if your properties remain occupied you know what to expect in terms of profit margin.

2. Real estate appreciates in value. Real estate consistently appreciates, even during economic downturns, making it one of the more reliable investments. On average, real estate in the US appreciates between 3-5% annually.

3. Real estate investments help you retire. If you have been paying on your mortgage throughout your working years, you will experience greater cash flow as you near the end of your mortgage term and the principal is paid off.

4. Real estate sales are taxed at a lower rate than other income. When you sell your property, you are taxed short- or long-term capital gains which are usually lower than income tax brackets.

5. Real estate equity can be leveraged. One of the most attractive reasons for investing in real estate is the ability to leverage your money. When you take out a mortgage to purchase property you reduce the amount of capital required. As you build up equity in the property, you borrow against the equity or refinance the original loan, freeing up cash to buy another property.

As the days get longer and summer makes its debut, it’s time to turn your attention to your outdoor spaces. Whether you are updating your home for a quick sale or just want to choose a project that will contribute to increased equity down the road, it’s important to choose wisely and with an eye on the projects that sell in your local market.

Doors, Siding, and Roofing

They’re not as hot as other outdoor projects, but these elements are among the most value-added improvements you can make to your home’s exterior. Year after year, new exterior doors, garage doors, siding, and roofing lead the pack in return on investment (ROI). Remember, these improvements don’t have to be strictly utilitarian— they can contribute to updating and upgrading your home’s curb appeal as well. Go for a different color, different material, and a different look, and enhance these updates with new exterior lighting and hardware for maximum impact.

Landscaping Updates

One of the most cost-effective ways to add value, no matter what your plans are for selling your home, are trees. Offering a host of benefits, including improving your ecological footprint, savings on heating and cooling costs, and appreciation year after year, mature trees add beauty and value to your home and to your neighborhood.

In addition, consistently well-maintained landscaping can make a big difference in the way your...Read More

How To Shop for a Home Loan

Tue, 11 Apr 2023 10:33:35 -0700

One of the first steps in the homebuying process is gaining pre-approval for a mortgage loan. This gives you a realistic idea of the home prices that you can afford and allows you to make a strong offer when you do find the right house. While there are a lot of factors that impact your loan approval and the interest rates that lenders will offer, there are a few steps you can take to make sure that you’re getting the best home loan and mortgage rate.

Don’t just look at the rates online

Most mortgage lenders list their current average rate on their website. But the key word here is average. This number does not reflect each borrower’s current financial situation, so you can’t know if that is the exact rate that you would get approved for if you applied to that lender. To know what rate you would get, you need to go through the preapproval application process. Lenders will look at your debts, assets, and income to determine what you can afford and offer a loan amount and interest rate that reflects your financial situation. To know which lenders to apply to, talk with your real estate agent, look at the loan types that lenders offer, and consider expanding your search to different banks, credit unions, and online lenders.

Apply to multiple...Read More

What Homeowners Can Do With All Their Stuff

Thu, 06 Apr 2023 14:13:33 -0700

Whether selling or staying put, most homeowners could benefit from a little decluttering.

Key Takeaways:
Share with sellers the financial advantage of only taking with them what they’ll use.
Explain how breaking down the process into smaller tasks can lighten the stress load.
Offer ideas on how to dispose of belongings by selling, donating or sharing.
Decluttering makes moving easier for everyone—and less costly, too. It is also helpful for those who want to live more simply in their current residence. In fact, homeowners who have less clutter and are more intentional about what they bring into their space find that a positive for both their mental and financial health.
Many saw the wisdom of doing so during the pandemic when they were stuck at home, looked around, and wondered: Why do I have all this stuff that I never use?
Now, in the dead of winter when many again are indoors for long stretches, can be a good time to encourage clients to begin. Advise them to think of it as an adventure they pursue gradually rather than feel pressure to tackle all at once.
Truly effective—and lasting—decluttering represents a multistep process that varies according...Read More

Is It Really Better To Rent Than To Own a Home Right Now?

Mon, 06 Mar 2023 09:02:29 -0800

You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.
A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.

But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:

“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”

The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant...Read More

7 Kitchen Renovation Trends to Watch

Thu, 16 Feb 2023 04:41:12 -0800

Find out what remodelers are doing to upgrade this most-prized space in the home.
From opening up kitchens to the outdoors to shifting cabinet styles, a range of kitchen trends are moving away from all-white, cookie-cutter designs to featuring a variety of fixtures and finishes. In the new 2023 U.S. Houzz Kitchen Trends Study, about 3,600 homeowners who’ve recently remodeled their kitchen or are in the process of doing so share what’s topping their to-do renovation list. Here are some of the trends that emerged:

1. Spotlighting better views
Twenty percent of renovating homeowners are making kitchens more open to the outdoors. The most common ways they’re doing this are by adding in double doors or a row of doors (46%), a single door (29%) or a pass-through window (14%).
2. Sustainability features
Trendy, environmentally-friendly updates include LED bulbs, energy-efficient appliances, water-efficient fixtures and energy-efficient windows. Survey respondents say the main reason why they’re looking into incorporating more sustainable options is because of “long-run cost-effectiveness” (74%). But more than half of renovators (54%) also say they’re making the choice because “environmentally friendly” is top of mind to them.
Read More

Elegant Decor for Any Budget

Fri, 27 Jan 2023 14:27:14 -0800

Refer to picturesque celebrity homes, and the figures are frankly staggering. For thousands or even millions of dollars, one could appoint their home with the pinnacle of interior design opulence, featuring original work by esteemed decorators, furniture from acclaimed designers, and statement work by renowned artists who have earned household-name status.
It’s understandable to crave such refinement for your own home. However, you can attain the immaculate look of finely curated interiors at a much more reasonable price. The secret lies in employing certain reliable design techniques rather than shelling out for specific products. Start with these six approaches to elegant decor.
Rearrange
Furniture and decor are often only as impressive as their context, and regarded decorators know how to position goods for maximum impact. A common tactic is to arrange seating at right angles: framing sofas, accent chairs, and ottomans around a large rug and then anchoring seats with proportional end tables and light fixtures. Try to feature similar or even identical lamps in one room for a satisfying motif.
When decorating a large seating area, resist the urge to spread out furniture in a massive sprawl. Instead, separate the room into distinct seating areas, each centered around a table within arm’s reach. Take a hotel lobby for inspiration. To create balance in any room, separate the largest pieces, like credenzas and beds, from one another, peppering in smaller accents like...Read More