What to Know About Your Credit Before Buying a Home

It’s not just whether you pay your bills on time that matters.

Image: Cavan Images/Tanya St/StudioBarcelona/Getty

CONTRIBUTED BY

This article was contributed by financial expert and blogger Mary Beth Storjohann, CFP, author, speaker, and founder of Workable Wealth. She provides financial coaching for individuals and couples in their 20s to 40s across the country, helping them make smart, educated choices with their money.

Like it or not, your credit score is one of the most important numbers in your life, ranking up there with your Social Security number, date of birth, and wedding anniversary. This three-digit number is your financial report card, except there’s no getting rid of it after college.

Your credit score shows lenders just how trustworthy you are when it comes to managing your finances, and it can either save or cost you thousands of dollars throughout your life.

If you’re in the dark about just how significantly this number can impact you and the details behind your personal score, here’s an overview of what you need to know before hitting the mortgage application process.

How Your Score is Calculated

Your FICO credit score is comprised of five elements, according to the Fair, Isaac Corp.

1. 35% of your score is attributed to how you pay your bills. Points are added for paying on time and deducted for late or missing payments. Note: This is a big portion of your score, so if you’re not paying bills on time, it’s best to get that under control pronto.
2. 30% of your score is based on your credit utilization ratio. Translation: How much money do you owe as a portion of the amount of credit available to you? The lower this ratio, the better.
3. 15% is based on the length of your credit history. When did you open your first account (and is it still open)?
4. 10% of your score goes to the type of credit you have. Think revolving credit (such as credit cards) and installment credit (such as car loans and mortgages).
5. The last 10% is impacted by new credit applications. How often and for what types of credit are you applying?

Where to Find Your Score and Report

To access your credit report, use a website such as annualcreditreport.com, which will give you one free report a year, or creditkarma.com, which will provide you with free access to your score upon signing up for an account.

Once you have copies of your report and score, immediately look for fraudulent or erroneous information. If you find anything, immediately contact both the credit reporting agency and the company that is portraying inaccurate information to determine next steps.

How Your Score Can Cost You

Your score can range from about 300 to 850. You’ll find a variety of breakdowns on what’s considered “good” compared to “excellent” versus “poor,” but in general you’ll want to aim for a score of 740 and higher, which is the “very good” range.

The higher your credit score, the more creditworthy you appear to lenders (meaning they can rely on you to pay your debts and pay them on time), which translates into lower interest rates and more money saved when taking out a loan.

Not sure how this can play out financially? Consider this:

Meet Claire: She’s 35, pays her credit card off in full each month, has all her bills on auto-draft, and never misses a payment. She’s had a positive credit history for 10 years and wants to buy a home. Claire was approved for a $200,000, 30-year fixed-rate loan at 3.75%.

Meet Steve: He’s 32, obtained his first credit card at age 18, ran up some debt in college that he’s still working on paying down, and has no system for keeping track of bills. He has consistent late and bounced check fees. Steve wants to buy a home and was approved for a $200,000, 30-year fixed-rate loan at 5.5%.

What’s all the fuss about if they were both approved? Over the life of her loan, Claire will pay $133,443.23 in interest. Over the life of his loan, Steve will pay $208,808.08 in interest. A small interest rate difference of 1.75% translates into $75,364.85 more paid by Steve! $75,000 is a pretty significant sum of money that could be used toward other goals.

Having a solid credit score is one of the most financially savvy tools for you to have on hand when it comes to buying a home. When managed wisely, your credit score will bring you confidence, peace of mind, and more money saved via low interest rates.

When mismanaged or not cared for at all, your credit score can delay your success in meeting financial goals and result in additional funds and resources spent correcting past mistakes.

If you have questions relating to your credit score or anything real estate please contact me.  If I don’t have the answer, I will find out or connect you to the professional who can. I look forward to being a guide for you in buying or selling real estate. stevenson.csmdemo.com/

Let more natural light shine indoors with these simple tips.

Fall and winter start cozy — who hasn’t used the colder temperatures as an excuse to binge-watch Netflix while swaddled in a couch blanket?

But come January, staying indoors can feel less like a treat and more like you’re living in a cave.

Here’s how to make your house lighter, brighter, and cheerier with more natural light indoors.

#1 Take the Screens Off Your Windows

Image: Natasha Hunt, Simply Inspired Blog

You’ll get 30% more sunlight shining indoors without screens on your windows.

Here’s the best part: Sunlight warms your room and saves you money on your heating bill. It’s solar power — for you!

Be sure to store your screens in your garage or basement, where they won’t get damaged. In the spring you’ll want to put them back on so you can keep that 30% of the sun out and run your cooling system less.

#2 Hang Outdoor String Lights Indoors

Image: Eleni Psyllaki

They don’t give off a lot of light, but they’re cheerful as heck.

Drape them around a window or a mantel, or hang a string of LED glimmer lights in a tall potted plant. They’ll add a layer of soft light to your room and remind you of fireflies, flip-flops, and patio parties.

#3 Steal a Little Swedish Chic

Image: @makingoverthemimsion

Scandinavians excel at making a home light and airy because they’ve got places where the sun doesn’t rise at all from November to January.

And you thought you had it bad.

To adapt to weeks and weeks of polar night, Swedes keep interiors pale to reflect and amplify light.

Think white walls, light woods for furniture and floors, and light upholstery. To get the look without getting rid of your dark furniture and floors, put white or light gray slipcovers on your sofa and chairs, and put down light-colored rugs.

The fastest way to bring a little Sweden into your room is to paint it. Try creamy white, pale blue, or dove gray.

#4 Change Your Bulbs

Image: Pop Lights EXI Glass Chandelier

Replace those incandescent bulbs and their yellowy light with LEDs, which produce a brighter, whiter light.

But get your bright right:

• The higher the K rating on the bulb, the cooler and whiter its light.
• For cool, white light, opt for a bulb rated 3,500K to 4,100K.
• For blue-white light that’s closest to natural daylight, use a bulb between 5,000K and 6,500K.

Unless you live in Sweden (see above) you may want to leave the uber-high K bulbs for grow rooms and seasonal affective disorder therapy clinics — because they’re as bright as real sunlight on a hot summer day at noon. You’ll need sunglasses to read.

#5 Hang Mirrors

Image: Madison Wetter of Spaceandhabit.com

Make the most of that weak winter light by bouncing it around the room with mirrors.

If you don’t want the distraction of seeing your reflection all the time, use a large, convex one — also known as a fish-eye mirror. It will amplify light better than a flat one. Another option: Hang a gallery wall of small mirrors.

#6 Replace Heavy Curtains With Blinds or Roman Shades

Image: Shannon Munro Denny/@bungalivin

Fabric curtains, while quite insulating, block light and make a room feel smaller and more cramped, especially if they’re a dark color or have a large print.

Try Roman shades or a simple valance paired with blinds to let in the maximum amount of natural light.

#7 Clean Your Windows

Image: Prideaux Design & Alta Constructors, designer/Matt Vacca, photographer

Dirty windows block a lot of natural light.

Admit it. Yours are kind of cruddy because who remembers to block out an afternoon to clean the windows?

So, get it on your list. Clean the glass inside at least once a month and the glass outside once a year. Your serotonin level will thank you.

#8 Swap Your Solid Front Door for One With Glass Inserts

Image: irina88w/Getty

A solid front door can make your house look and feel as dark as a dungeon.

Get rid of it and install a half-light or full-light door that lets the natural light stream in. For even more natural light, add glass sidelights and a glass transom.

A new entry security front door will cost about $250 in fiberglass and $975 in steel, including parts and installation. A a new door will add curb appeal, which equals higher resale value. And coming home in the evening to the warm glow of light radiating out the glass panels in your front door is an instant mood lifter.

#9 Add a Skylight

Image: Helen Menegakis @sydneyrenovator

It’s the ultimate way to bring more natural light into your house. A window only catches sun for a couple of hours a day, but a skylight lets in the sun all day.

An indoor view of the sky makes deepest January more tolerable. And feeling the warmth of the sun on your skin, light streaming from above, is liberating. A skylight, installed, costs between $1,300 and $3,000. A cheaper alternative is a tubular skylight, which costs $500 to $950 including installation.

If you’re really good with tools, you can install a tubular skylight yourself. Don’t even think about installing a full-blown skylight yourself.

#10 Add Plants

Image: Igor Image; Josifovic

Putting pots of plants around your room will remind you that spring and green will return.

Match plants to the amount of light you have, because dead and dying plants are depressing. Tropicals that thrive in indirect light are usually the best choice. If you have a sunny window you’ve got more plant options.

Bonus points for adding a plant that blooms in the winter, like a kaffir lily or anthurium.

Written By: LEANNE POTTS

Leanne Pottsis an Atlanta-based journalist and serial home remodeler. She’s tackled five fixer-uppers and is working on a sixth. She’s written about everything from forest fires to dog-friendly decor and spent a decade leading the digital staff of HGTV.

9 of the Biggest Living Room Trends to Look Out For in 2022, According to Designers

Multifunctional, airy spaces

“There’s been so much focus on health and well-being that I think our homes will continue to reflect that in the use of natural materials, plants — and, generally [designing] light and airy spaces. And, because we’ve been home more than ever before, multifunctional spaces are key to handling the myriad of activities we do at home these days.” —Designer Maryline Damour, principal at Damour Drake LLC in Kingston, New York

Warm tones and accents

“I think people are really craving a sense of warmth and comfort in their homes at the moment, so we will continue to see the use of organic tones such as chocolate brown, camel, putty, ochre, and rust. Curating your space and adding additional small items makes the space personal, and layering textiles, furniture, and more helps keep the warmth.” —Zoe Feldman, principal designer and founder of Zoe Feldman Design in Washington, District of Columbia

Modern retro decor

“After being in quarantine, people are taking more risks and looking for more fun in their homes. I am anticipating a boost of color with bold patterns from the ’70s mixed with modern clean lines to make it more contemporary. After all, history does repeat itself.” —Nichole Samuel, principal interior designer and owner at Goddess Interiors in New York City, New York

Reupholstery

“Many of my clients are choosing to reupholster existing pieces rather than purchase new. Their decisions have been based on a variety of factors, including long procurement times due to supply chain issues, a desire to be more eco-friendly, and continuing to see traditional styles in a new light. When reupholstering, we’re replacing original linen and silk blend fabrics with high performance ones, which now come in a diverse range of fantastic options.” —Designer Michelle Tremont Boyd, founder of Michelle Tremont Design in Alexandria, Virginia

5 Common Mistakes You Might Make Renovating Your House

By Jennifer Nelson

7 home improvements that can actually decrease your home’s value, according to real estate experts
When it comes to resale value, not all home improvements are created equal. In fact, some can even decrease your home value.

BY TERRI WILLIAMS JULY 01, 2021

Your home’s resale value is (or at least should be) an important factor to consider when renovating and making home improvements. Surprisingly, the two least expensive home improvement projects have a huge payoff. There are also other reno projects that can provide a great return on investment when you put your home on the market.

However, some “improvements” can actually lower the value of your home and make it less appealing to buyers. These are the home improvement projects that you should avoid.

1. TURNING A BEDROOM INTO A CLOSET

Who doesn’t love a large, walk-in closet? But if buyers have to choose, they’ll place more value on bedrooms than on a larger space to store clothes and shoes. Tyler Forte, CEO at Felix Homes in Nashville, tells us that one of his clients turned a guest bedroom into a walk-in closet for the master suite.

“Generally speaking, a walk-in-closet is a great feature – but not at the expense of an additional bedroom,” he warns. “On average, each additional bedroom can add $10,000 to the value of a home.” On the other hand, if you replace a bedroom with a walk-in closet, Forte says you’re decreasing the home’s value by $7,500 – and that doesn’t even include the cost of materials and labor spent on the project.

Kris Lindahl, CEO and founder of Kris Lindahl Real Estate, which serves Colorado, Minnesota, and Wisconsin markets, agrees. “Converting a bedroom into a larger master closet will likely not increase value because you lost a bedroom,” he says.

2. COMBINING BEDROOMS

Combining two small bedrooms to create a larger bedroom sounds like a good idea, right? Older homes may be quaint and have a lot of architectural details, but they almost always have small bedrooms (and bathrooms). “Homeowners, in a misguided attempt to make an old house more ‘current’ combine two bedrooms into a larger one or create a master suite at the expense of another bedroom,” says Greg Kurzner, president/broker at Resideum in Alpharetta, GA.

“But if you turn a 4-bedroom home into a 3-bedroom home – when comparable homes have 4 bedrooms, the house might be worth less after the improvement.” He admits that square footage is important but says that the number of bedrooms and bathrooms will also matter to homebuyers.

Kurzner’s view is shared by Bill Golden, realtor/associate broker at RE/MAX Around Atlanta, GA, who advises against changing the home’s layout in any way that eliminates a bedroom. “In an area of homes with 5 bedrooms, that may not matter much, but if your home is in a neighborhood where most homes have 3 bedrooms and 2 baths, and your renovation changes it to only 2 bedrooms and 2 baths, you may lose some value when you go to sell,” he warns.

3. PERMANENT CUSTOMIZATION

Since you’re the person living in the home – and paying the mortgage – it’s natural to want the home to suit your likes and preferences. And that’s fine, as long these changes are easy to neutralize when you decide to sell the home. Lisa K. Lippman, licensed associate real estate broker at Brown Harris Stevens in New York, NY, advises caution when integrating custom colors in a permanent way. “Bright colored stone or tile, an all-black bathroom, or bright blue cabinets in the kitchen will appeal to very specific taste and are not easily or inexpensively undone,” she warns.

Kurzner agrees and also advises against materials and eclectic style that you love – but no one else does. “Even certain decor can have a negative impact on your home’s appeal, but at least that can be removed when you move out,” he says. “However, when a buyer feels like they will need to ‘undo’ your improvement and ‘redo’ it over, the improvement has backfired and has likely cost you.”

4. BOLD PAINT COLORS

Paint is a relatively easy home improvement project, but that doesn’t mean buyers want to spend time and money repainting your home. “Painting your home, either the interior or exterior, in non-neutral colors can decrease the value of your home,” says Chris Fajkos, realtor at Tahoe Mountain Realty in Truckee-Tahoe, CA. You may prefer reds, purples, deep blues, and the like, but don’t assume that buyers will. “Current interior design trends continue to suggest that buyers want and expect neutral colors, and if you go against the grain, you may end up putting off buyers who would’ve paid top dollar for your home.”

Here’s something homeowners tend to forget. “Your home is only worth as much as someone is willing to pay for it, so if prospective buyers see a costly paint job ahead of them, they might either offer under the asking price or pass on the home altogether,” Fajkos warns.

5. NOT MAINTAINING THE HOME’S ARCHITECTURAL STYLE

A home improvement project can also decrease the house’s value if you use incongruous or cheap materials, according to Golden “If you have a Tudor style home with diamond-paned windows, and you replace them with plain vinyl windows that don’t match the home’s style, you will decrease your home’s value,” he says. “Yes, you have new windows, but if you’ve ruined the architectural style of the home, you have not improved its value, and more than likely you have decreased its value.”

6. LOWERING CEILINGS

Buyers love high ceilings, which open up spaces and make rooms appear to be larger than they really are. Lower ceilings can probably save on energy bills, but they can also induce feelings of claustrophobia. Keep that in mind if you’re thinking about altering the height of your ceilings. “Lowering ceilings has long been a simple solution for lighting, wiring, or to create a delineation between an entrance gallery and living space,” says Lippman. “However, lowering a ceiling should be done sparingly, as it can also lower the property’s value.”

7. ADDING A POOL

Some buyers love swimming pools. However, experts are divided on how a pool affects your home’s value. Sometimes, it may depend on which area of the country you’re in. For example, Golden says he sold a home (in Atlanta) this spring that had a pool, and was inundated with offers. “Now, in the era of COVID, when people have gotten used to staying home more, pools are at a premium around here,” he explains.

But in colder climates, you might get a different response. “At least in Minnesota, installing a pool can be a downside to many potential buyers, and thereby have the effect of decreasing a home’s value given the limited amount of time you can use a pool in Minnesota and the costs associated with maintenance and repair,” Lindahl says.

And even in warm climates, not every buyer will appreciate a swimming pool. “That’s one of those home improvement projects that isn’t going to return a reasonable percentage of the cost of the improvement,” says Kurzner. “No matter how nice the pool, many people don’t want them or the maintenance and costs associated, so that can negatively affect value.”

If you are thinking about an upgrade/improvement on your home please check with me. I’ll be happy to let you know how it will effect your home’s value. Remember Melissa Stevenson for everything Real Estate!

Terri Williams is a journalist with real estate, home improvement, and product review bylines at Realtor.com, Bob Vila, Yahoo, MSN, The San Francisco Chronicle, The Houston Chronicle, and Apartment Therapy. She also covers business topics, with bylines at USA Today, The Economist, US New & World Report, Verizon, and several other brands that you’ve probably heard of. Follow her adventures on Twitter.

If you’ve been touring homes for sale, you might find yourself asking plenty of questions about how you might change them to better suit your style. What would it take to add another bathroom? Why did the seller choose those cabinets and that flooring for the kitchen? Could the deck be converted to an enclosed porch?

As you consider making changes, you might also be considering whether you should build a home instead of buy one, and how much it would cost. Here’s a breakdown comparing the two options.

Is it cheaper to buy or build a house?

If you’re focused solely on initial cost, building a house can be a bit cheaper — around $7,000 less — than buying one, especially if you take some steps to lower the construction costs and don’t include any custom finishes. The median sales price of an existing home was $309,800 as of December 2020, according to the National Association of Realtors, while the average cost of building a house is $302,817, HomeAdvisor reports.

Don’t let that fool you, though. Building a house is still a very expensive endeavor that requires finding a loan (which will likely have a higher interest rate than a conventional mortgage) and paying for permits. Depending on where you’re building and what kind of home you want, it can be much more costly than buying one. Consider some of these common costs:

As you can see, these figures can vary widely based on where you want to live and the kind of house you want. The price for land alone can be really cheap — $3,000 in remote rural areas — or really pricey in areas with limited supply. Don’t forget that you might need to pay for other expenses such as a garage, fencing and a driveway, as well.

Beyond the upfront cost, it’s important to look at the long-term expense of owning a home. According to a 2021 analysis by the National Association of Home Builders, the operating cost on a new home — which includes property taxes; utilities, water and trash; maintenance and homeowners insurance — is lower than that of an older home. Homes built after 2010 have operating costs equal to around 3 percent of the home’s value, while the operating costs on homes built before 1960 are more than 6 percent, according to the NAHB.

Should you build or buy a house?

In addition to cost, there are some crucial components to consider when weighing whether to buy or build a home.

“The cost of new construction and the buyer’s moving timeline are some of the factors to consider, but also the area [and] location that they are looking to move into,” explains Rose Kemp, a Realtor with RE/MAX Town Centre in Orlando, Florida. “In some cases, there is better value in a new home for the purchaser versus resale. Also, sometimes the resale homes in an area may be older.”

Pros and cons of building a house

Pros

• Get exactly what you want – Building means customizing. Instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.
• Avoid the hassle of competing offers – When you build a home, you can take the back-and-forth with other buyers out of the equation.
• Peace of mind – When everything in your home is new, you shouldn’t have to worry about any major repairs (at least at the outset). “The buyer may find better value and peace of mind with a new home because the home will be warranted by the builder,” Kemp says.

Cons

• More time – While you’ll save time on attending open houses and scouring online listings, you’ll have to wait to move into your brand-new home. It takes around seven months from start to completion to build a single-family home, according to 2019 data from the U.S. Census Bureau. If you’re paying rent for those seven months, that’s an extra cost to consider, too.
• More decisions – A blank canvas means you can customize your home, but it also means you’ll have a lot of decisions to make. If you’re busy with work and family, it can be challenging to focus on every piece of the construction process.
• Contractor challenges – Delays, miscommunication and issues with subcontractors — there are plenty of hiccups that can happen while building a home. Be sure to vet a few different builders to understand their work approach and timeline, and be prepared for speed bumps.
• Cost overruns – While you’ll have a budget in mind at the beginning of the project, there will almost always be expenses you didn’t anticipate, or materials you end up spending more for, that can add up to well above what you first set out to pay.

Pros and cons of buying a house

Pros

• Faster move-in time – Buying an existing home means you can put a move-in date on the calendar much earlier compared to constructing one from scratch.
• Potential bargaining power – With existing real estate, you may be able to leverage data to get a better price. For example, if a home you like has been on the market for more than 30 days, the seller may be willing to come down on price, or if a similar property in the area is priced lower, you can use that to justify a lower offer.

Cons

• Potential market competition – That bargaining power mentioned in the pros? It might be zero, depending on where you’re looking. According to the most recent Confidence Index from the National Association of Realtors, sellers received an average of about four offers. In a hot seller’s market, buying can feel like being at an auction as others drive up the price.
• Older appliances and internal systems – It may be a new house for you, but it’s technically been used. Depending on the age of the property, you may need to pay for repairs sooner than you expect. Your insurance rates will likely be higher than what you would pay to protect a new home, too.

Bottom line

As you consider whether building or buying a home is right for you, it’s important to recognize that both processes include plenty of costs and potential stressors. The end result, though, should feel well worth it. Think about the existing properties you’ve toured, your timeline for moving in and your expectations of this new home.

Whether you decide to build or buy I can assist you.  Call me with questions for anything real estate.  309-256-0649

Article written By David McMillin David McMillin’s Twitter profile

• Feb. 18, 2021

Paint and colors shape how we view the world around us, and how we view our homes in particular. After an unprecedented year that found many people spending more time at home than ever before, 2021 is poised to bring even more changes and trends to home decor than in recent years.

Each year, Fixr reaches out to the top interior design experts and industry influencers to get their take on what the hottest upcoming trends will be. With 2021 bringing some much anticipated changes, we’ve once again brought you the latest in paint and color trends for the home. 68 top influencers and designers in the home design field have weighed in on what they believe to be the hottest color trends.

They were given a mixture of multiple choice and open questions to answer covering topics on color for every area of the home. From kitchens to home offices and furniture to color’s impact on resale value, we bring you the latest on what home designers are predicting will be the biggest paint and color hits for the upcoming year.

We’d like to thank the experts who gave their time to weigh in on these questions. Whether you’re a homeowner, an interior designer, or someone who works in a related field, we hope you’ll find these answers to be illuminating and inspiring for the year ahead.

Key Findings:

• 81% of experts agree that quarantining and staying at home has strongly affected homeowners’ color choices
• Earthy and warmer neutral tones are replacing gray as the most popular shade, say 54% of design experts
• Aegean Teal and Urbane Bronze will be the most used “Colors of the Year” by homeowners
• 65% say textured walls and wallpapers will lead the way for accent walls
• White easily keeps the top spot for popular exterior colors to sell a house in 2021
• Blue is the preferred option for personal spaces and soothing vibes

New Influences, New Directions

Over the last year, many people’s situations and home lives changed. For some, this was temporary, while for others these changes could be permanent. This includes working from home, having children studying and learning at home, and simply having the time and inclination to finally tackle many home projects.

All of this can also be seen in the colors and color choices that people are now making for their homes.

81% of Experts Agree that Quarantining Has Strongly Affected Homeowners’ Color Choices

Experts were asked whether they felt that the amount of time people were now spending at home would affect or influence their choice of colors. An overwhelming 81% of experts agreed that it would strongly affect it. In many ways this could be expected. The extra time spent at home has had many people reexamining their environments, with more than 60% of all homeowners having undertaken some type of home project in the last year. With this new involvement in home projects, many people may want to get a fresh look or color for their homes as well.

Earthy and Warmer Neutral Tones are Replacing Gray, Say 54% of Design Experts

For the last several years, gray in all its shades has been the top color for interior and exterior design. As of late, most interior designers have been making the case for a more earth-toned palette instead. When asked about the top three palettes homeowners are choosing today to paint their interiors, earth tones came in a solid 3rd place (46%), behind warm neutrals (50%) and neutrals with pops of bold color (54%). Neutrals in all their shades go hand in hand with earth tones, with warm neutrals complementing them particularly well. It seems that many homeowners are ready for some more color after several years of gray.

60% of Designers Report That Homeowners Prefer Light-Colored Furniture

When it comes to furniture choices, it seems that more people are gravitating toward light colors. Light natural tones received 36% of the vote, while light colors in general got another 24%. This certainly lines up with the paint color trends; light and natural tones on the furniture would coordinate well with the natural and neutral colors for the walls, also making the ideal backdrops for some fun, bold colors added by accent pillows or art.

Almost Half of Designers Note That Homeowners are Incorporating Plant-Inspired Colors

Many people began purchasing plants for their homes – with roughly 12% of them being first time plant buyers. So it stands to reason that people may want to incorporate their newfound love of plants and greenery into their decor. 41% of experts found that their clients are indeed beginning to use a more natural, plant-inspired color palette. A further 21% also say that they have seen some sporadic use of plant-inspired colors as accents in the home as well.

This also ties in with the new trends toward natural and earth tones in the home. These palettes occur with plant life in nature, so it stands that they would complement each other indoors as well.

Aegean Teal and Urbane Bronze Will Be The Most Used “Color of The Year” by Homeowners, Experts Agreed

Each year, many paint companies and manufacturers release what they call their color or colors of the year. These colors sometimes speak to current trends, other times they make a statement about the year itself. Of the 6 selected companies that have released a color or palette for 2021, 53% of experts think that most people will choose Benjamin Moore’s Aegean Teal for their homes. A further 43% feel that Sherwin Williams’ Urbane Bronze will be used. These colors both tie in well with other trends. Urbane Bronze is a sophisticated warm, natural and neutral color, while Aegean Teal is the kind of bright but soothing tone that would work well as an accent against a more neutral background.

Ways to Introduce Colors

Color can be used in many ways and in many places in and around the home. While many people’s first consideration may be walls, this is far from the only place that a color or colors could be used. We asked our experts to weigh in on the many ways that color can be introduced into the home.

49% of Designers Agree Textiles are the Most Popular Way to Incorporate New Colors

49% of experts feel that textiles will be the most popular way of incorporating new colors in 2021. As already shown, neutrals with pops of color will be the most popular palette for the year. Adding pops of color makes the most sense when doing so on things that you can change out readily for a fresh new look as needed. This in turn means that textiles would be the natural place for a bright color like Aegean Teal to be introduced into a room.

65% Say Textured Walls and Wallpapers Will Lead the Way for Accent Walls

Accent walls are a way to make a statement or to add some depth and interest to a room. There are many ways to create them from incorporating a simple, solid color to adding materials or wallpaper. When asked what they felt would be the most popular way to create an accent wall in 2021, the designers’ responseswere mixed. 37% felt that a textured wall would be the way to go, while another 28% felt that patterned wallpaper would be the more popular method. In both cases, the wall itself will likely have more going on than a single color, which would make it a feature of the room when complete.

90% of Designers Agree There is a Surge in the Use of Wallpapers

When asked if they were seeing an increased use in wallpaper or other murals, many experts shared that they had seen this already or that they were the ones bringing it to their clients with good results. As Patti Johnson of Patti Johnson Interiors explains, “Wallpaper is always part of the discussion on the first consultation and 100% of my clients are receptive to the idea and ultimately opt for it.”

As for the colors and patterns being seen, many agree that bold designs of all types are preferred. Pat Valentine Ziv of PVZ Design LLC explains, “Wall coverings have become bold with color and pattern; my current clients appreciate this along with the subtle textures and often contract grade wall coverings for durability and ease of maintenance.”

Whitney Jones of Whitney J Decor adds, “…I’m seeing a gravitation to natural materials, like grasscloth, beginning to become common in mid-level projects, not just the more high-end ones.” With people spending so much more time at home, it may be that they’re more willing to make some bolder choices than before.

Colors That Sell

While many people will paint their homes in colors that they enjoy, many others like to keep in mind the resale value of their home with any project they undertake. For those who are looking to sell in the coming year, we asked experts to weigh in on what they thought buyers would be looking for.

Whites and Neutrals Create a Blank Canvas in a Seller’s Market

When it comes to interiors, 63% of influencers felt that whites and creams were the shades to pick. A further 32% felt that warm neutrals were a good pick. Given that it is currently a seller’s market with a serious shortage of homes for sale, creating a blank slate for buyers by using whites, creams, and warm neutrals could make a home more appealing to a broader group than using a specific or more tailored palette.

White Easily Keeps the Top Spot for Popular Exterior Colors in 2021

When it comes to the exterior of the home, 53% of experts felt that white is the preferred color. White has actually been one of the most popular shades for exterior color palettes for the last few years. Choosing the exterior color is not always an easy task though, and there are several factors that should be taken into account when making this decision. In addition to color, housing architecture and other preferences in your area play an important role, too.

However, white seems to be a preferred classic and it seems that it’s going to stay around for a little while longer on the exterior. This color gives homeowners the opportunity to easily introduce other light or dark accents.

A Color for Each Space

Every home has its own color story. This is the different mix of colors that you’ll see throughout a home as you pass from room to room. Given the way people have been changing how they use the rooms in their homes over the last year, it makes sense that their color stories may change as well.

Designers Have Mixed Options About Home Office Color Preferences

Many people found themselves working from home for the first time this past year, which gave rise to a number of new home offices. When asked what color influencers thought these offices would be painted, answers were mixed. 25% thought that off-white would be the preferred color, while 18% thought that navy blue would be used most often. Another 16% thought that blue/green would have appeal, while 15% thought that it would be blue/gray. These variations could be due to the fact that home offices may need to double as other spaces such as guest rooms or living rooms when not in use as a workspace.

33% of Experts Predict Natural and Earth Tones Will Dominate Kitchens in 2021

When it comes to the kitchen, natural and earth tones seem to be the most popular choices for 2021, getting 33% of the vote. Shades of green came in second with a surprising 21%, while past popular colors of white, blue, and gray fell much further down the list. Given that natural and earth tones have been seen as popular in general, and that many people are beginning to incorporate natural plants and their colors into the home, it does make sense that these palettes extend to the kitchen as well.

Almost Half of Designers Suggest Blue for Personal Spaces and Soothing Vibes

When asked what they recommend for a soothing shade to be used in bedrooms and other personal spaces, 48% of influencers agreed that blue was the color to use. Green came in a very distant second place at 16%. Studies into the color blue have found that it is a calming color, and that it can have a beneficial impact on the viewer in that way. Given that many people may be craving peace and calm in 2021, blue makes an excellent choice for personal spaces.

Changes Approach for 2021

While 2020 saw a lot more people staying at home, 2021 is poised to see more people choosing colors that can help them feel more comfortable in those spaces. From a shift away from grays into warmer, earthier neutrals, to embracing textured and patterned wallpapers, homeowners want their homes to be warmer, soothing, and more comfortable than ever before. Color makes an ideal way of introducing change in a timely manner, so these colors could be the start of some new trends in other areas of the home as well.

Methodology

These results were compiled from a survey undertaken by 68 experts in interior design. Each survey participant was selected for their role in the home design industry based on their work, role in social media, and awards won in the industry.

These experts were given a series of multiple choice and open-ended questions covering a variety of design-related topics. For some multiple choice questions, respondents were able to choose multiple options. The data and visualizations used in this report include all responses received.

Make sure you’re ready to become a homeowner in the new year.

Christy Bieber

Buying a home can be exciting and fun, but it’s also a serious financial commitment and it’s one you need to be ready for. If you’re planning to purchase a house in 2021, you should get started ASAP.

In particular, here are nine things to check off your to-do list.

1. Save up a down payment

Ideally, you should aim to set aside a 20% down payment for your house. That way, you can avoid paying private mortgage insurance (PMI), which lenders require if you don’t have much equity to protect them in case they have to foreclose.

If you don’t have 20% to put down, you can definitely still buy a home, although you’ll have to incur those added PMI costs. For almost all loans, however, you’re going to need to put down at least some money (3% down is typically the bare minimum). That means if you want to buy a $300,000 house, you’d need at least $9,000 to move forward.

2. Check your credit report and score

Your credit score is going to determine if you can get approved for a mortgage and the rate you’ll pay for your home loan. Your score is based on information in your credit report, so it’s important to check that too.

Check your Credit Report to see if there are any mistakes that have reduced your score. These can take time to correct and you don’t want your home purchase process held up because you discover an error too late.

If your score is lower than you’d like it to be, you can also work on improving it. For example, you could try to pay down debt you currently owe or ask creditors to remove past derogatory information from your credit history.

3. Set a housing budget

Before you start looking for a home, it’s a good idea to decide howmuch you are comfortable spending. In fact, you may want to do this even before you apply for a mortgage. If you’re approved for a larger loan than you want to take on, it may be tempting to take the extra money.

When setting your housing budget, consider both monthly payments and total borrowing costs. Aim to keep your housing expenses below 30% of your income. And decide how much total interest you’re comfortable paying over the life of your loan. Obviously, the more you borrow, the higher your monthly payment will be. And the more total interest you’ll pay over time.

4. Start comparing mortgage lenders

You have many different options for mortgage lenders, including online lenders, local banks, national banks, and credit unions. It doesn’t hurt to start looking into what each lender offers even if you aren’t quite ready to make a purchase.

Many lenders allow you to get pre-qualified online by answering just a few simple questions — and this won’t affect your credit score. You can get an idea of whether you’ll be approved and what rate you’ll pay. This can help you make more informed decisions further down the road.

When you’re ready to look for a home, you’ll also want to get pre-approval, which involves providing more financial documentation. Pre-approval shows sellers you’re a serious buyer, so it’s worth doing before you make an offer on your home. You’ll also want to be confident you can get the financing you need before moving too far into the process.

5. Make a list of your must-haves

For most people, it’s not possible to find the absolute “perfect” house. Indeed, the current high home prices may make it even more challenging to get everything you want. As such, it’s important to define your priorities. That way you’ll know in advance what trade-offs you’re willing to make.

Consider things like location, size, school district, number of bedrooms, energy-efficient features, and other criteria that matter to you. Make a list so you can keep these priorities in mind when looking at homes to buy.

6. Start browsing properties online 

Whether you’re ready to start shopping for a home right away or are planning to buy later in 2021, it doesn’t hurt to start looking at what’s available. In fact, browsing properties online can give you more insight into whether you’ll be able to find a home that’s right for you in your price range. Otherwise, you might need to save up a little more money. Be sure to check my website which gives you access to ALL listings on the MLS – www.MelissaStevenson.com  or app.kw.com/KW2LTEJBR (My Keller Williams app link)

7. Research local real estate agents 

Most buyers hire a real estate agent to help them in their home search process. As a buyer, you won’t directly pay an agent, but rather the agent will receive a portion of the commission the seller pays. And agents not only help you to find properties but they also assist you with negotiating an offer and getting to closing.

If you’re going to hire an agent, you’ll want one who is focused on your needs. You can start researching local agents and interviewing them so you’ll know exactly who to call when the time comes to start your home search in earnest. I would love to talk with you about buying or selling real estate.  Call or text 309.256.0649 Melissa Stevenson

8. Bulk up your emergency fund

Becoming a homeowner comes with a whole host of new expenses, including covering repair costs when something goes wrong. You’ll also need to make sure you have the money to make your mortgage payments even if you experience an interruption in income.

That means it’s extra important to have a large emergency fund.  Ideally, you’ll have the cash set aside to cover three to six months of living expenses. That way, you’ll be confident you can cover your payment and pay for any problems that develop after you move in.

9. Begin saving for a move

Moving can be costly, as you’ll have to pay to pack up and transport your possessions (or buy boxes and rent a truck if you plan to handle the process yourself). Start saving now so you won’t have to come up with several thousand dollars to fund a move at the same time as you have to pay closing costs.  Call or text 309-256-0649 I can tell you all the potential costs and which ones you may be able negotiate with the seller.

By taking these nine steps, you’ll be ready to hit the ground running and hopefully enter into a successful home purchase in 2021.

A historic opportunity to potentially save thousands on your mortgage

Chances are, interest rates won’t stay put at multi-decade lows for much longer. That’s why taking action today is crucial, whether you’re wanting to refinance and cut your mortgage payment or you’re ready to pull the trigger on a new home purchase.

I work with numerous lenders and can help you to find a low rate.  Call or text to get information on local lenders 309-256-0649. Melissa Stevenson

Please feel free to call me with any real estate questions.  My goal with all clients is to guide you through the buying process as smoothly and efficiently and with the best price.   www.MelissaStevenson.com, www.MelissaSells309.com, 309-256-0649

By Erica Sweeney | Nov 23, 2020

Viktoriia Hnatiuk / Getty Images

Savvy home buyers know that winter is typically a good time to embark on a house hunt, since much of their competition stays holed up at home until spring. But this winter, buyers might notice that despite the cold and the holidays, they’ve got company.

Lots of it, in fact.

“Normally winter is a good time for buyers,” says realtor.com® chief economist Danielle Hale. However, since the coronavirus kept buyers on lockdown for much of spring, many are making up for lost time by home shopping hard right now.

“This year’s unusual seasonal pattern means that buyers aren’t getting the usual break from the market frenzy that they typically do in the cooler weather,” Hale explains.

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As a result, this winter is shaping up to be a seller’s market, with low real estate inventory, high prices, and bidding wars that could give buyers a major run for their money.

This doesn’t mean you should throw in the towel—just that you’ll have to hone your house hunt in new ways to suit the times. Here are some tactics that will keep you ahead of the pack so you’ll be sitting in a new home by the new year.

Secure your financing as soon as possible

Getting pre-approved for a mortgage and securing financing are an essential first step when buying a home. It gives you a clear picture of how much house you can afford, and lets you make an offer as soon as you find your dream home.

Matt van Winkle, a real estate broker and owner at Re/Max Northwest Realtors in Seattle, says this process is more important now than ever.

“Getting pre-approved for a loan is obviously important, but is there anything else they can do to put themselves in a good position?” he says. “Buyers need to be ready to buy a house before they start looking.”

Too often, buyers don’t line up their financing until they find a home they want to buy, van Winkle says. In the current competitive market, waiting to get pre-approval means you could lose out on purchasing a home you love.

“That creates a mad dash and stress to get everything lined up under pressure,” he says. “Get all your financing secured and ready before you look, that way when you find the right home you’re 100% ready.”

Starting early could also help you lock in an ultralow interest rate, which could affect your monthly mortgage payment and mean you could afford a more expensive home. As of Oct. 22, Freddie Mac listed rates at 2.8% for a 30-year fixed-rate loan.

Know what you want before you house hunt

COVID-19 has changed how we live and work. We’re spending much more time at home, and people are looking for different features in their living spaces.

Make a list of your must-haves before you start house shopping—and share your needs with your real estate agent.

Simon Isaacs, broker and owner of Simon Isaacs Real Estate in Palm Beach, FL, says it helps cut down on the number of homes you’ll have to view before finding the right one.

“I would suggest buyers not look at 25 homes,” he says. “If the agent is showing them that many houses, the agent doesn’t know what they want.”

In such a competitive landscape, knowing exactly what you want enables you to act fast when you want to make an offer.

Tour homes virtually first

More real estate agents are embracing virtual tours and remote showings to ease coronavirus safety concerns. In some cases, they’re even limiting in-person showings to the most serious buyers—those with financing already secured, for example.

“Real estate agents in our local market are adjusting to the client’s needs by continuing to provide in-person showings with precautions and also assisting buyers virtually with their home purchases,” says Matt Curtis, owner of Matt Curtis Real Estate in Huntsville, AL.

Virtual home tours, using Zoom or FaceTime, let you view the home from anywhere, and depending on the setup, you might be able to ask questions in real time. So you can narrow down the homes you’re most interested in and physically visit only the ones that best meet your needs.

I do virtual tours of all the homes I list and I will physically visit a home with you.

Don’t dawdle if you want to make an offer

In September, there were nearly 40% fewer homes on the market than during the same month last year, according to a realtor.com report. At the same time, buyer demand has increased, creating an incredibly competitive marketplace. Homes were on the market for an average of 54 days in September, 12 fewer days than last year.

Tracy Jones, a real estate agent with Re/Max Platinum Realty in Sarasota, FL, says the buyers she’s worked with lately have had just a few homes to consider. And, with all the other buyers in a location also looking at those same houses, you’ll need to act fast if you’re interested.

The challenge, she says, is potential buyers have little time to mull things over, and they are pitted against one another.

Isaacs is seeing a similar situation. Wait too long to submit an offer, and another buyer is likely to swoop in with an offer of their own.

“I would say don’t deliberate on buying,” he says. “I’ve had too many clients who were [saying], ‘Should we, shouldn’t we.’ I would say if it’s something that you want to do, do it.”

Make your offer stand out

Since inventory is so low, sellers are getting multiple offers on their homes these days. To make sure yours gets accepted, you’ll need to make it stand out.

Cash offers and inspection waivers are some ways to make your offer more appealing, Curtis says.

A cash offer, if you can afford it, is attractive to sellers because it eliminates dealing with a mortgage lender and often speeds up closings. An inspection waiver comes with lots of risks, since you’re essentially agreeing to purchase a home as is, but the waiver removes any repair negotiations and helps you close faster.

For competitive markets, where you know you’ll be competing directly with many buyers, Jones suggests talking to your agent about escalation clauses. This is a contract addendum where you agree to pay more than other offers (up to a maximum you set).

Bottom line: “Find a strategy to help make your offer stand out amongst the 10, 20, or more offers that may come in on your dream home,” Curtis says.

Contact me to find out the specifics of buying and selling in the Peoria area;  I’ll be happy to guide you.  309.256.0649 Melissa Stevenson, Keller Williams Revolution

By Erica Sweeney | Nov 2, 2020

Winter is traditionally real estate’s slow season. Between the cold weather and the holidays, the housing market typically plunges into a hibernation of sorts, with both buyers and sellers shelving any major real estate moves until spring.

This winter’s real estate market, however, is shaping up to be unlike any other before it—and, contrary to what some may have feared, is slated to be an excellent time to sell a home. In fact, Lawrence Yun, chief economist at the National Association of Realtors, predicts “it will be one of the best winter sales years ever.”

Why? Chalk it up to a perfect storm of low mortgage interest rates, sparse housing inventory, plus a pandemic that’s fundamentally changed how, when, and where buyers are shopping for homes.

So if you’ve assumed you should put your home-selling plans on hold until spring, read on for a surprising reality check on all the reasons this winter could be a great time to put your house on the market.

Pandemic lockdowns have created pent-up buyer demand

While spring is typically real estate’s busy season, the “silent spring” of 2020 saw the housing market grind to a near halt amid pandemic-mandated lockdowns. This, in turn, created pent-up demand to purchase property that is only now being unleashed.Top of FormGet Pre-Approved

Find a lender who can offer competitive mortgage rates and help you with pre-approval.

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“We currently see buyers sticking around in the housing market much later than we usually do this fall,” says Danielle Hale, chief economist at realtor.com®. “If that trend continues, we will see more buyers in the market this winter, too. So this winter is likely to be a good time to sell.”

“There are plenty of people in the pipeline ready to hit the market this late autumn and winter,” Yun agrees.

Many real estate agents have noticed this glut of eager buyers first-hand.

“Winter is usually a slower season, but this year we’re not seeing any sign of letting up,” says Matt van Winkle, a real estate broker and owner of Re/Max Northwest Realtors in Seattle. “The selling season was delayed because of COVID lockdowns and stay-at-home orders, so several months of usual busy sales periods were delayed.”

This buyer demand likely won’t wane anytime soon.

“We will see an extended purchase season in 2020 and into 2021,” says Shelby McDaniels, channel director of corporate home lending at Chase.

Lockdowns are forcing many buyers to upsize their homes

COVID-19 has not only created pent-up demand, but many buyers are also in the market purely because they’re working/schooling from home and realizing their space is no longer big enough—particularly now that the temperature’s dropping so they can’t easily escape to their back patio to catch up on emails alone.

“With people spending so much time in their homes, including working from home and virtual schooling, there’s a great emphasis on being happy there,” says Matt Curtis, owner of Matt Curtis Real Estate, in Huntsville, AL. Lack of space is a complaint agents hear more often now.

And if people are allowed to continue working from home rather than commuting to an office, they might also realize that they can shop for homes farther outside cities—great news for home sellers who live in more remote areas.

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Housing inventory is low

Although buyers are plentiful, the number of homes for sale is way lowerthan usual. According to realtor.com’s Monthly Housing Market Trends Report, in September, national housing inventory declined 39% over last year.

“Because the number of homes available is currently at a record low, even if we see some improvement, which I expect, there will still be relatively few homes for sale,” Hale says. “That will keep upward pressure on home prices and help ensure that homes continue to sell quickly.”

“Inventory is low, so the overall advantage is with the seller,” agrees Yun.

Tracy Jones, a real estate agent with Re/Max Platinum Realty in Sarasota, FL, says buyers have so few homes to choose from these days that they’re feeling forced to make quick decisions about whether to make an offer, or risk losing out on the chance. Nationally, homes spent an average of 54 days on the market in September, 12 fewer days than last year, according to the realtor.com trends report.

“The buyers I have worked with this year only had a handful of homes to look at,” Jones says. “They had no time to wait and talk about it, and they had to fight other buyers if they wanted to buy them.”

Sellers can get top dollar for their homes

It’s simple supply and demand: Low supply and high demand are bound to drive up home prices, so sellers stand to make a killing.

Across the country, median home listing prices jumped 11.1% in September compared with a year ago, to $350,000, according to realtor.com. Price per square foot increased by 13.9%.

“Sales prices and home values remain strong,” McDaniels says. And since there are so many offers on the table, “sellers can call the shots regarding terms of contract and repairs.”

The only challenge sellers face with such low inventory—if you can even call it a challenge—is dealing with too many offers at once, says Curtis.

“The challenge they face is navigating multiple offers and not accepting an offer too quickly to help ensure they get the most money for their home,” he says.

Mortgage interest rates are low

Although buyers will face stiff competition, it’s not all bad news for them. For one, despite high home prices, record-low interest rates mean they’ll save a ton of money.

Interest rates on a 30-year fixed-rate loan were 2.8% as of Oct. 22, according to Freddie Mac.

This “boosts buyer home purchasing power,” Hale says. “In fact, despite double-digit increases in home prices this year compared to last year, today’s home buyers are likely actually paying slightly less on their mortgage each month, thanks to much lower mortgage rates.”

The Federal Reserve has continued to lower interest rates this year to keep the economy going during the COVID-19 crisis, says McDaniels.

“Even before the COVID-19 pandemic, economists and real estate professionals predicted mortgage interest rates would remain below 4% in 2020,” she says. “This means buyers that might have waited will consider entering the market this year.”

Any economic shift likely won’t be felt until spring

Although unemployment continues to rise due to COVID-19 layoffs, Hale says this could affect the real estate market, but the effects likely won’t be felt for a few months.

“A worsening unemployment rate would lead to a slowdown in the housing market and home sales, but I don’t expect that to happen immediately, more likely in the spring,” Hale says. This could create a slower start to the spring home-buying season.

Plus, if another round of stimulus money appears, this would fuel consumer spending.

“This would be a good thing for the housing market and the economy at large,” Hale says.

Any Questions?

 Please feel free to call me with any real estate questions.  I’d love to help guide you with buying or selling. stevenson.csmdemo.com/ 309-256-0649