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What Is Multigenerational Housing? [INFOGRAPHIC]
![What Is Multigenerational Housing? [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2022/04/14144240/20220415-MEM-1046x2456.png)
Some Highlights
- If you have additional loved ones coming to live with you but don’t have enough space, it may be time to consider a larger, multigenerational home.
- Some key benefits of multigenerational living include a combined homebuying budget, shared caregiving duties, enhanced relationships, and more. These benefits might be why more people are choosing to live in multigenerational homes today.
- Let’s connect so you can find a house that meets your changing needs and has plenty of space for you and your loved ones.
Using Your Tax Refund To Achieve Your Homeownership Goals This Year
If you’re buying or selling a home this year, you’re likely saving up for a variety of expenses. For buyers, that might include things like your down payment and closing costs. And for sellers, you’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it.
Either way, any money you get back from your taxes can help you achieve your goals. Using a tax refund is a common tactic for buyers and sellers. SmartAsset estimates the average American will receive a $2,897 tax refund this year. The map below provides a more detailed estimate by state:
If you’re getting a refund this year, here are a few tips to help with your home purchase or sale this season.
How Buyers Can Use Their Tax Refund
According to American Financing, there are multiple ways your refund check can help you as a homebuyer. A few include:
- Growing your down payment fund – If you haven’t started saving for your down payment, let your tax refund kick off the process. And if you have a fund already, the money you get back could put you closer to your goal.
- Paying for your home inspection – Your home inspection can save you a lot of headaches down the road by helping you determine the condition of the house. As a buyer, you’ll typically be responsible for paying for your inspection, and it’s definitely worth the investment.
- Saving for closing costs – Closing costs are additional expenses you’ll need to pay once it’s time to close. They average anywhere between 2-5% of the purchase price of your home.
This list is a great start, but it isn’t exhaustive of all the costs you may encounter as you set out on your homebuying journey. The best way to prepare is to work with a trusted real estate professional to make sure you understand what’s to come in the process.
How Sellers Can Use Their Tax Refund
If you own a home and are planning to sell this spring, your tax refund can help you make sure your home is ready to list. Here are a few ways current homeowners can put their tax refund to good use:
- Making small upgrades – NerdWallet provides a list of great ways to use your tax refund, including tackling small projects or boosting your curb appeal to help your home stand out.
- Making repairs – If there’s anything in your house that needs to be fixed, American Financing notes that completing repairs is another great use of that money.
- Buying your next home – Whether you’re selling to move up or downsize, you can use your tax refund to help pay for any costs on the purchase of your next home.
Of course, it’s important to talk with your trusted real estate advisor before taking on any projects. They’ll make sure you can focus on areas that’ll help you receive the best possible price when you sell.
Bottom Line
Funding your home purchase or sale can feel like a daunting task, but it doesn’t have to be. Your tax refund can help you reach your goals. Let’s connect to discuss how you can start on your journey.
Why a Real Estate Professional Is Key When Selling Your House
With today’s real estate market moving as fast as it is, working with a real estate professional is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its lowest point since 1985 (see graph below):
Here are five reasons why selling with a real estate professional makes more sense, even in today’s hot market:
1. They Know What Buyers Want To See
Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house shows well.
If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A survey from Freddie Mac finds that:
“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.”
A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.
2. They Help Maximize Your Buyer Pool
Today, the average home is getting 4.8 offers per sale according to recent data from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.
Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to realtor.com:
“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”
Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.
3. They Understand the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. That’s why Investopedia says:
“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”
A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
4. They’re Trained Negotiators
If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
- The buyer, who wants the best deal possible
- The buyer’s agent, who will use their expertise to advocate for the buyer
- The inspection company, which works for the buyer and will almost always find concerns with the house
- The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
5. They Know How To Set the Right Price for Your House
If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. Pricing a house requires expertise. Investopedia explains it like this:
“. . . There is no easy or universal way to determine market value for real estate.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.
Bottom Line
There’s a lot that goes into selling your house. Instead of tackling it alone, let’s connect so you have an expert on your side throughout the entire process.
Agent Spotlight on Charles Nagy
This month the Green Team Realty Agent Spotlight is on Charles Nagy.
Charles Nagy resides in Crystal Springs with his wife Lynne. He enjoys playing golf and being involved in many of the other activities in the community. Through his pursuit of continuing real estate education, he obtained his certification as a Short Sale and Foreclosure Resource. Charles has been involved with different aspects of the real estate business for over 40 years. This includes the creation and sale of real estate tax-sheltered investment offerings; real estate management of high rises and garden apartment complexes; the development of raw land for the construction of residential homes and for 18 years, as a builder of residential properties. Consequently, it is no surprise that Charles decided to involve himself in the marketing and sale of real estate to prospective homeowners. With the wealth of knowledge and experience that Charles brings with him to the team of Agents at Green Team New Jersey Realty, he is able to deal with any issues that may arise in the course of selling homes which enables him to better assist buyers with their decisions.
Charlie is one-half of Green Team New Jersey Realty’s Dynamic Duo!
Their experiences in the real estate industry differ, yet they complement each other. The other member of the Duo is Ted Van Laar. Ted’s specialty is resort properties. Back in 1979 Ted and his wife, Rosanne, became attracted to the beauty, lifestyle, and amenities offered in Vernon’s resorts. Through the years they have shared their love and enjoyment of Mountain Creek, Crystal Springs, and Great Gorge resort area with their three children. They’ve also shared it with friends, family, and Ted’s many clients. Ted has a reputation for integrity and honesty, as well as appreciation and understanding of the resort lifestyle. Therefore, his clients like and trust his expertise, whether they’re looking for a private residence, second home, or investment property.
For some reason, these two diverse backgrounds meld together to form a productive, successful team. Charles and Ted have also been recipients of the New Jersey Realtors ® Circle of Excellence Award multiple times between 2014 to 2021. In fact, in 2021 they each received the Silver Award for sales between $6.5 and $12 million. In addition, the duo has been quarterly sales leaders several times, as well as Yearly Sales Leaders. Most recently, in 2021, they each achieved their personal best in sales, earning them Green Team Realty Gold Awards.
We asked Charlie the following questions:
Before entering the real estate profession, what did you do?
How and why did you become a real estate agent?
What do you like best about being a real estate agent?
What do you like least about being a real estate agent?
What was your most memorable/unusual real estate transaction?
What is it like being part of the Green Team?
How would family and friends describe you?
What is your proudest accomplishment?
What does “home” mean to you?
What advice would you give to someone thinking about selling their home?
What advice would you give to someone thinking about buying a home?
What advice would you give to your younger self?
What You Need To Know if You’re Thinking About Building a Home
If you’re ready to move up, you may be trying to decide whether you want to buy a home that’s already on the market or build a new one. And since the supply of homes available for sale today is low, you’re willing to consider either avenue. While home builders are doing everything they can to construct more houses and help narrow the supply shortage, they’re also facing delays due to factors outside of their control.
Here’s the latest on some of the key challenges homebuilders are experiencing today and how they could impact your plans to move up. When you know what’s happening in the industry, you can make an informed decision on whether to look for a newly built or an existing home in your home search.
Supply Chain Issues
The first hurdle builders are dealing with is the lack of supply of various building materials. According to a recent article from HousingWire:
“. . . Nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase.”
The supply issue isn’t just with lumber, even though that’s what’s covered most in the news. The article explains many other supplies are impacted too, including roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall).
The difficulty in getting these items is dragging out timelines for new homes as builders wait on what they need to finish construction. And since materials are in short supply, even when they do get the product, the principle of supply and demand is driving prices up for those goods. HousingWire explains it like this:
“When supplies are low, charges inevitably go up, . . . Meanwhile, a lack of availability is causing huge delays, meaning builders are struggling to stay on schedule.”
The National Association of Home Builders (NAHB) agrees:
“Builders are grappling with supply-chain issues that are extending construction times and increasing costs.”
Skilled Labor Shortage
But that’s not the only challenge with new home construction today. Builders are also having a hard time finding skilled labor, which means they’re short-handed, further dragging out their timelines. Odeta Kushi, Deputy Chief Economist at First American, says this is an ongoing challenge for the industry:
“The skilled labor shortage in the construction industry is not new – it’s been an issue for more than a decade now.”
But there is good news. The February jobs report shows employment gains in the construction industry. Kushi puts this encouraging news into perspective in the article mentioned above:
“Overall this was a good report, . . . The supply of workers continues to fall short of demand, but the underlying momentum of the labor market recovery is strong, and falling COVID case counts provide further forward momentum.”
That means, while finding workers continues to be a challenge for builders, there are signs of positive momentum moving forward.
How This Impacts You
HousingWire explains how these things can impact move-up buyers today:
“The residential construction industry is facing a crisis as builders manage the critical shortage of building materials and labor. Explosive supply and labor costs are forcing long delays. . . .”
So, when you weigh your options and try to decide between building a home or buying an existing one, factor the potential delay in new home construction into your decision. While it doesn’t mean you should cross newly built homes off your list, it does mean you should consider your timeline and if you’re willing to wait while your home is being constructed.
Bottom Line
When planning your next move, understanding the latest market conditions is key to making the best decision possible. To make sure you have all the information you need, let’s connect. Together we can make sure you know what’s happening in our local market so you can confidently decide what’s right for you, your priorities, and your timeline.
The Perks of Owning More Than One Home
Many things have changed over the past couple of years, and real estate is no exception. One impact is an increased desire to own more than one home. According to the recent Luxury Market Report from Luxury Home Marketing:
“As trends such as remote working and flexi-hours took hold in 2021, so too did the flexibility of relocating as well as the growth of second homeownership.”
This may be because the pandemic has altered how we think about our homes. Where we live has become, more than ever, our safe space and our getaway. And with the rise in remote work, more people are reconsidering where they want to live and buying second homes to give them greater flexibility. If you fall in that category, here are just a few of the perks you’ll enjoy, and how owning a second home may be a great decision for your lifestyle and your future.
Enjoy a Change in Scenery (or Weather)
When you have two homes, you can alternate between them as the weather changes or as you crave different scenery. Do you want to live in an area with a particular season? Would alternating between a resort and a suburban setting be ideal? With two homes, you have those options. Being able to move between homes based on which location best suits you at the time gives you added flexibility and variety that can help increase your happiness.
Build Your Wealth Faster
You may have heard that home equity is skyrocketing, thanks to ongoing home price appreciation. CoreLogic reports that the average homeowner gained $56,700 in equity over the last year. With home prices projected to continue rising, if you purchase a second home, you could benefit from rising equity on both properties to build your wealth (and your net worth) even faster.
Be Closer to Loved Ones
The pandemic has also reignited the importance of being near our loved ones. One option worth exploring is whether you want your second home to be near the people who matter most in your life. This makes it easier to see your loved ones but still gives you your own dedicated, private space so you can be nearby for major life events or longer visits.
Lock in Your Expenses
Buying a second home today and locking in your mortgage rate may be a good option if you’re looking to stabilize your housing costs for the long haul. If you’re approaching retirement or are looking to use your second home as your permanent residence in the future, buying that house now with today’s rate and price may be a good financial decision. That way, no matter what happens with rates and prices in years ahead, your monthly payment is locked in for the next 15-30 years.
Bottom Line
Having multiple homes has considerable benefits. If owning a second home is something you’re interested in, let’s connect to explore your options, discuss the benefits, and take the next step to start your home search.
The #1 Reason To Sell Your House Today
Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.
Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest Existing Home Sales Report which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there’s one big challenge.
Inventory Is at an All-Time Low
Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months’ supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say:
“The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low.”
Earlier this month, realtor.com released their inventory data for January. It helps confirm this point. Here’s a graph comparing inventory levels for January over the last six years:
As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don’t stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that:
“Seventy-nine percent of homes sold in January 2022 were on the market for less than a month.”
Odeta Kushi, Deputy Chief Economist at First American, explains it like this:
“A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales & lower inventory. Many resale transactions are happening so quickly that they ‘flow’ in & then out of the ‘stock’ between the fixed monthly measurement of inventory.”
What Does This Mean for Sellers?
Anyone thinking of putting their home on the market shouldn’t wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today.
Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.
In addition, Len Kiefer, Deputy Chief Economist at Freddie Mac, says:
“Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006.”
As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now. Don’t wait for that increase in competition in your area. If you want to sell in 2022 and are ready to start the process, today is the day to list your house.
Bottom Line
If you’re ready to sell, let’s connect to get your house on the market while today’s inventory situation is in your favor.
Celebrating Five Years with Green Team
Like any family, Green Team likes to celebrate special occasions. And, celebrating five years with Green Team is indeed an important anniversary! Congratulations to:
Jaime Dalton
Jaime Dalton joined Green Team New Jersey Realty in January 2017. Raised in Vernon, NJ, Jaime graduated from Vernon Township High School in 1996. Jaime’s love of Sussex County and her deep roots in the area enable her to share her knowledge with clients. “I just can’t imagine not living here, “said Dalton. “It had the best of everything…living in the beautiful, peaceful mountains while having anything else you could want all within an hour.” Jaime ended 2021 by achieving a Bronze Award for a sales volume of $1.5-$3 Million.
Robert Valentine
Robert Valentine joined Green Team New York Realty in January 2017. Robert has even more to celebrate. He finished 2021 with the Bronze Award for sales volume between $1.5-$3 Million.
Theodore Van Laar
Theodore Van Laar has been part of Green Team New Jersey Realty since February 2017. He has over 35 years of experience selling resort properties. In 1979, the amenities and beauty first attracted Ted and his wife, Rosanne, to the area. Through the years, they fell in love with the lifestyle and growth here in the Mountain Creek, Crystal Springs, and Great Gorge resort area. They enjoy and share their appreciation for the surrounding area with their three children, family, and friends. Ted is a seasoned professional with a record of achievement and a reputation for his honesty and integrity. He is enthusiastic about sharing his love of the Resort lifestyle with his clients, whether they are looking for an investment property, second home, or primary residence. Ted received the Gold award for $5-$10 Million sales volume for 2021.
Barbara Tesa
Barbara Tesa joined Green Team New Jersey Realty in April of 2017. She brought with her over 20 years of professional experience in both residential and commercial real estate management. Furthermore, Barbara has a successful history as a licensed real estate agent in New Jersey since 2009. In 2001, Barbara and her husband purchased a home in Crystal Springs. There, they enjoy a resort lifestyle and all the beauty that Sussex County has to offer. The ability to embrace the potential in each of their homes became second nature to Barbara giving her the confidence to inspire many of her clients to do the same. In 2021, Barbara achieved the Gold award for $5-$10 Million in sales.
Lora Chandra
Lora Chandra joined Green Team Realty in April of 2017 as a CSA (Certified Sales Assistant). In 2018, she received the Team Player Award for being the most reliable, positive, and dependable. Furthermore, the award states that she works well with others and is a great problem solver. Ultimately, it’s no surprise that Lora has risen in the company to Operations Manager.
Pam Zachowski
Pam Zachowski joined Green Team New Jersey Realty in May of 2017. With diversified corporate experience, Pam pays great attention to detail and has a strong drive to find your next home. Additionally, her dedication to continued participation and growth within this industry has furthered her advancement. Pamela has a high level of motivation to continue advancing her professional skills and eagerly looks to utilize and challenge her abilities. She achieved the Gold award for 2021 sales volume of $5-$10 Million.
Kim Lesley Spaughton
Kim Lesley Spaughton joined Green Team New York Realty in May 2017. She was born in England and moved to New York City 28 years ago. There, she raised her daughter Jasmine, who is one of the original cast of ‘Hamilton the Musical’ on Broadway. Kim is a professional working musician, performing concerts, teaching singing locally. She also leads meditation workshops as the Spiritual Director of her own program in rehabs and outpatient facilities. Kim has a sublime understanding of the heart in others and in turn, has dedicated herself to finding the perfect home for you. Negotiating is her passion, understanding that each transaction has its own unique quality. Kim achieved the Bronze award for sales of $1.5-$3 Million.
Jim Moser
Jim Moser joined Green Team New York Realty in June of 2017. He studied marketing at Dominican College and, throughout his career, he has had a great passion for customer service. While a native of Rockland County, Jim has lived in Orange County for over 25 years residing in Warwick for over five. And, while some consider it “country,” Jim loves the mixture of farmland, great neighborhoods, and quality restaurants and shops. Of course, there are also wineries, the drive-in theatre, and concerts in town. His knowledge of the area and his desire to create a positive customer experience is a plus for his clients.
Tom Folino
Tom Folino became a member of Green Team New York Realty in October of 2017. If Tom’s name sounds familiar, it’s probably because he taught at Warwick Valley Central School District, where he was highly respected as both a teacher and coach; formally the Head Coach of both Boys Varsity Basketball and Boys Varsity Golf for 20 years. After 37 years with the WVCS District, Tom retired from teaching in 2014 and coaching in 2017. He decided to pursue real estate full time, motivated by a desire to help people sell and buy homes they’d love within this community he knows so well. Tom received the Gold award for sales of $5-$10 Million in 2021..
Walter Ross
Walter Ross joined Green Team New York Realty in December 2017. As a Warwick resident for over 40 years, Walter has knowledge of both the local and Orange County markets. Combined with over 35 years of business and marketing experience, he has the knowledge and experience needed to achieve a successful real estate transaction. Walter received the Silver award for $3-$5 Million in sales in 2021.
Happy 5th Anniversary and Congratulations!
February 2022 Housing Market Update
Geoff Green, President of Green Team Realty and Co-Founder and CEO of NuOp welcomed viewers to the February 2022 Housing Market Update. If you haven’t yet seen the webinar or would like to see it again, it’s available below.
Inflation – and its impact on homeownership
It seems that the “I”s (inventory, interest rates and inflation) have it when it comes to some of the major factors affecting the housing market. First, we have been talking about inventory, at historic lows. Then, there were interest rates; again, at historic lows although we have begun to see them rise. And now, inflation is taking top billing:
According to Mark P. Cussen, Financial Writer for Investopedia,
“Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”
A look at the US inflation rate since 1920 shows that we have been through worse. And, while current inflation is not as high as it was in the late 1970s, early 1980s, it is a serious problem.
Owning versus renting
According to James Royal, Senior Wealth Management Report, Bankrate,
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”
In addition, rent increases have been greater than inflation most years.
Mortgage Rates
Before the pandemic, the 30-year fixed rate was 3.70%. It reached historic lows during the pandemic, dipping just below 2.7%. The rate is now 3.55% but are no higher than we were pre-pandemic. Historically, current mortgage rates are the lowest they’ve been in five decades. In fact, in the 1980s, they rose as high as 12.70%.
According to Sam Khater, Chief Economist, Freddie Mac,
“As mortgage rates rise, we do expect some moderation n housing demand, causing house prices growth to temper. However, the combination of large number of entry-level homebuyers facing a shortage of entry-level inventory of homes for sale should keep the housing market competitive.”
National Stats
The average home sales price has gone up, very much due to inventory going down. Accordingly, it is very much a case of supply and demand.
Meet the Panel
Joining Geoff Green is Keren Gonen of Green Team New Jersey Realty, Carol Buchanan of Green Team New York Realty, and Chad Barris, Family First Funding.
The panel discussed the information presented by Geoff as it relates to their experiences in the field. To watch the webinar and see the panel discussion, click here.
“Housekeeping Items”
