Things to keep in Mind

It is important to inspect the area first before looking at the house.

Especially, if you are a family with children, you should consider the local school district and the neighbors’ area before looking at the house. There are many cases of moving based on the school district and the neighbors rather than housing conditions.

• quiet neighborhood

Noise has a great impact on quality of life. People who are sensitive to sound are prone to great stress even from small noises. Once you have found a house you like, you should visit the neighborhood several times on different days and at different times to check the noise level. The morning of the weekend is the quietest time of the week, so it is important to try to visit at different times of the day, such as weekend evenings or weekday evenings. When you discover a train horn you haven’t heard before, or the noise of a next-door neighbor’s party, you’re forced to reconsider your homebuying decision.

shopping options

• shopping options

It is not a good location if you must drive 20 to 30 minutes to buy items that are frequently used in daily life, such as coffee or milk. Just as important as the condition of the housing is the proximity of daily amenities such as gasoline, grocery, restaurants, and gyms. If convenience facilities such as supermarkets, pharmacies, and hospitals are within walking distance, the location is ideal.

• sidewalk

A sidewalk is a road created for people to walk on. Sidewalks may not seem to have a big impact on your life, but they do. Neighborhoods without sidewalks tend to have less cohesiveness or trust between neighbors, and walking is dangerous. House prices in areas with high walkability are expensive. However, neighborhoods without sidewalks inevitably have low pedestrian accessibility.

• emergency services facility

If there is an emergency service facility nearby, you can live without much anxiety. If you have an elderly family member or have a chronic illness, you can live with peace of mind if you live near a large hospital or emergency room. If you’re in a fire-prone area but don’t have many fire protection devices, buying a house on the street near the fire station is a must. It is terrifying to imagine that a fire breaks out and it takes more than 30 minutes for the fire truck to arrive. If you live in an area with a high crime rate, you will be safe if you live in a house near the police station.

• wooded area

Well-groomed areas not only look great, but also improve the quality of life in many ways. One study found that people living in areas with more trees were less likely to take antidepressants than people living in areas with sparse trees. Trees have a lot of influence like this, but above all, they play a big role in increasing the value of local housing.

• population orientation

It is also important to make sure that the neighborhood atmosphere suits you. If you are a family with young children, it is comfortable to live with neighbors who have children the same age as you. Conversely, the elderly, who have already retired, can communicate without much inconvenience if they live with residents of a similar age rather than younger generations. It is important to find a local professional real estate agent to understand the residents’ tendencies. This is because an agent who has been active in an area for a long time can grasp the neighborhood’s atmosphere as well as the residents’ tendencies.

• gym facility

We are living in a wellness era. Exercise is essential to maintaining well-being, and exercise needs the right place. If you have facilities such as parks, fitness centers, or other playgrounds near your home, exercise is up to you. In one survey, it was found that the closer the gym, the more frequent the exercise. Families with children who play sports often look for houses near their children’s sports clubs.

• crime rate

No matter how good the house is, it is difficult to live comfortably in a neighborhood with frequent crimes. The first thing to check before buying a home is the local crime rate. Recently, crime rates by region can be checked through real estate search sites, and crime status is also provided on the website of each local police department.

The best way to find out if a neighborhood is safe to ask the locals directly. If there are residents taking a walk, you can ask them if they have ever been a victim of a crime or about a recent crime in their neighborhood.

• neighborhood atmosphere

There is a case of a buyer who trembled with anxiety because he moved to a neighborhood where the atmosphere is gloomy at night, unlike during the day. It happened because I didn’t understand the atmosphere that changed at night because I usually only go to see houses during the day. Although the crime rate is low, there is a neighborhood that somehow creates anxiety. If there are empty houses or vehicles that are severely damaged and neglected, it not only harms the aesthetics but also causes anxiety. In some neighborhoods, the atmosphere becomes gloomy at night because residents do not turn on the lights in the evening. Along with the local crime rate, it is a good idea to visit at any time of the day, night, weekdays, or weekends to see how the atmosphere in the neighborhood changes.

• school district

If you are a family with children, there are many times when you consider the local school district before looking at the house. There are many cases of moving based on the school district rather than housing conditions. Living near the school your child will attend is good, but finding out about the school’s test scores, sports programs, and extracurricular activities can help you educate your child. Even if you don’t have children, buying a house in an area with a good school district can help keep the house price high.

Everything you need to know about your credit score for mortgage loan.

The higher the credit score, the better, but you don’t have to work hard to get a perfect score’.

Required for mortgage loan Approval by Region Check your average credit score, compare it to your own, and improve your score if needed.

• What is the minimum score required to buy a home?

There are two major models for calculating credit scores: the Fair Isaac Corporation (FICO) and the Vantage Score. Among these, the model that most lenders use to evaluate a home buyer’s creditworthiness is FICO. FICO calculates the consumer’s creditworthiness as a score and classifies it into five grades.

300 to 579 points are classified as ‘Poor’, 580 to 669 points as ‘Fair’, and 670 to 739 points as ‘Good’. A score of 740 to 799 is ‘Very Good’, and a score of 800 to 850 is ‘Excellent’.

Most lenders set a minimum credit score of 620 as the minimum credit score required to approve a mortgage loan. Mortgage loans can be obtained if the credit score is over 620, but strict loan conditions such as high interest rates and high downpayment ratios are applied because the loan risk is considered higher than good, very good, and excellent loans. So, if your credit score is in the 620s, you need to work on improving your credit score before applying for a mortgage loan.

• How is the credit score calculated?

The Vantage Score was created in the mid-2000s to compete against FICO, which had long dominated the credit rating market. The Vantage Score is a credit score calculation method jointly developed by three major credit rating agencies, Equifax, TransUnion, and Experian, and has recently been developed to a Vantage Score of 4.0. The credit score calculation method of Vantage Score, which is mainly used by non-bank lending institutions, is like the existing FICO, but has many differences.

The most important thing Vantage Score considers as a criterion for calculating credit score is ‘Payment History’. It determines whether credit card usage has been repaid on time or whether there is an overdue record and reflects it on the credit score, and this record accounts for the highest portion of the total score at 41%. The second most important criterion is ‘Depth of Credit’, which accounts for 20% of the total score. The percentage of ‘Credit Utilization’, which is the ratio of usage to the credit limit, is also quite high at 20%.

In addition, the Vantage score includes ‘Recent Credit’ (11%), ‘Credit Balance’ (6%), ‘Available Credit’ (2%), which means new account opening and credit inquiry records. etc. are applied as the credit score calculation criteria. Among them, the credit balance and available credit criteria are criteria applied only to the Vantage score, which are not included in the FICO criteria.

• How to improve your score?

Don’t be discouraged if your current credit score is low. There are plenty of ways to improve your credit score with just a little effort. The fastest way to improve your credit score is to pay off your credit balance. If it is difficult to pay off the full amount right away, you can raise your credit score even by one point if you diligently pay off your credit little by little and lower your credit balance as much as possible. Identity theft or credit bureau errors often result in unrecognized balances being recorded. In this case, you need to be extra careful because your credit score will drop without your knowledge. If your credit score drops without knowing the cause, you should get a credit report and check if there are any unclaimed accounts. In addition to the federal government-approved website ‘www.annualcreditreport.com’, banks and credit card companies have recently provided free credit report issuance services. If unopened credit accounts are listed on the report or other errors are found, you should contact the credit reporting agency that issued the report and request corrections. Your credit score goes up when the credit reporting agency grants you a correction request and deletes the record. Paying off credit card payments on time is also a way to raise your credit score, as delinquent records eat away at your credit score. FICO’s most recent credit score calculation method includes credit card payments as well as other bill payment records. Paying your rent or other utility bills on time can also improve your credit score.

Habits for Successful Buyers

    Good habits lead to success.

    1. Patience      2. Calmness      3. Flexible mindset      4. Experiential spirit

    5. Self-control      6. Always asking      7. Assiduity

How to remodel wisely in times of inventory shortages

Demand for remodeling surged during the pandemic. As the time to stay at home increases, the living space becomes an office, a resting space, and sometimes a resort-like vacation space. As such, demand for remodeling has increased, but raw material prices and labor costs have risen due to global supply shortages and poor logistics conditions, and the construction period has been longer than before.  And until now, this supply shortage has not improved much, so homeowners planning remodeling are deeply concerned about whether to remodel this year. However, even in the current situation, if you plan and prepare carefully, you can remodel within the desired budget. For homeowners planning a remodel this year, we looked at how to remodel wisely in an era of inventory shortage.

• Meticulous planning

Remodeling companies say, “It is best for homeowners to plan in advance for remodeling at a time when the supply of materials is not as smooth as these days.” Remodeling bathrooms, kitchens, and patios can take much longer than before the pandemic, as materials are in short supply and demand is high. If it is a remodel that includes plumbing work, you should set aside more time for the construction. This is because most of the plumbing facilities are imported products and the manufacturing period is much longer than other remodeling facilities.

In addition, bathroom equipment replacement, which was a very simple remodel before the pandemic, has recently been delayed due to a lack of supply. Angie Hicks, chief customer officer (CCO) of Angi, a home remodeling network platform, said, “If you have planned to remodel this year, you should start fully prepared.” I don’t know,” he says. She also advised, “Therefore, in order to complete the remodeling within the planned budget and time in these days of supply shortage, you must carefully review all problems that may occur during construction through consultation with a remodeling specialist before starting.”

• Securing necessary materials

For guest bathroom remodeling, there is no major inconvenience to daily life even if the construction is temporarily suspended due to a lack of material supply, but the kitchen is not. After removing all equipment in the kitchen, construction began, but when the construction is suspended for more than a month due to a lack of supply, inconvenience is not the only one. Therefore, in the case of kitchen remodeling, it is efficient to start construction after securing all necessary materials before starting construction. If you do not have the cabinet you want, it may take up to a month to reorder it, but it is a much wider choice to start the construction in a month while using the current kitchen as it is.

• Material storage warehouse

It is most efficient to start construction after securing the necessary materials, but if there is no place to store them, the purchase itself becomes impossible. It is not easy to have a large storage room to store bathtubs and cabinets in an ordinary home. In this case, if the remodeling company owns a warehouse to store materials and facilities, the work progresses much faster. Therefore, if you are going to remodel when it is not easy to obtain materials and facilities like these days, it is good to consider whether a specialized company owns a material storage warehouse. Make sure the contractor has space to store the materials you purchased in advance, especially if the project involves a whole house or a lot of repair space, rather than just one repair in the house.

• Flexible coping

 Before construction started, there were kitchen floor tiles or cabinets you wanted, but when you tried to buy them after starting, they might be out of stock. It is not uncommon for this situation to occur at present, so we should assume this case and start construction. In addition, you should consider preparing alternatives in case of this situation or purchasing the next best product in that situation. In this way, the landlord must be flexible to prevent construction delays. However, if you really need to purchase the product or equipment you want, you can complete the remodeling without stress if you have the patience to wait until the product is re-released rather than arguing with the company about product exhaustion.

• Surplus funds

When remodeling, having to replace a desired product with another product is not just about giving up one’s taste. Choosing a different product may cost more. In other words, when the tile you saw before construction is out of stock and you need to purchase another tile, there is no product you like in the same price range, and the next best solution may be more expensive than your budget. Angie Hicks, CCO, says, “When planning remodeling in a situation where inventory is scarce, like these days, it’s a good idea to set aside an additional budget in addition to the necessary budget.” This extra budget isn’t just needed to buy products that cost more than the budget. For example, if kitchen remodeling is delayed, spending on dining out and lodging during the remodeling period may increase more than usual. Therefore, when budgeting for remodeling, it is necessary to prepare for unexpected situations and secure surplus funds.

New Year’s Home Checklist home check-up

Even if it’s the third day of the year, it’s always around this time of year that you can’t leave out New Year’s resolutions.

Homeowners, in particular, start the year with a lot of planning, from renovations to upgrades that must be done before the year ends. Housing-related New Year’s resolutions are not so simple, such as having to make a financial plan for construction or upgrades that require a large amount of money, but they are closely related to the quality of life and the value of the home, so they are an important part of New Year’s plans. Here’s what homeowners shouldn’t leave out when making home-related New Year’s resolutions.

• Fund remuneration

At least once a year, you should do a thorough review of your home’s interior and exterior to see if any repairs or upgrades are needed. The best time to do this is the New Year. Because it’s the best time to identify problems and plan how to repair and refurbish them in the year ahead.

The most embarrassing moment for homeowners is when an unexpected problem arises and costs a lot of money. “Homeowners should set aside 1 to 3 percent of their annual home value for home maintenance and repairs,” says CCO Hicks. She also said, “Owning a house can be stressful if you don’t have this kind of extra money ready,” she said. You have to put in how to arrange it,” he advised.

• Air conditioning and heating system

When looking for problems in a house, the most important place to look at is the heating and cooling system. The reason why it is necessary to check the heating and cooling system frequently is that minor failures can escalate into major problems, and failures can cause great inconvenience to the whole family in hot summer or cold winter. Therefore, it is necessary to check the heating and cooling system at least once a year or every time the season changes.

For example, in the case of air conditioners, regular inspections in April or May should be carried out so that even if a problem occurs, you can live comfortably from July when summer begins in earnest after going through the repair period. Also, if you check frequently and resolve minor malfunctions like this, you can prevent it from escalating into a major malfunction later, preventing a large amount of money from being spent. Also, don’t forget to replace the air conditioning system filters. Dirty filters not only reduce indoor air quality, but also reduce the efficiency of the heating and cooling system. Filter replacement is generally recommended once every 90 days.

• Roof and chimney

It is a good idea to have your roof inspected at least once a year. That doesn’t mean you have to risk injury every year to climb onto the roof and inspect it. Instead, it’s enough to just look at the shingles to make sure none of them are bent. If you see a lot of bent boards, this is a sign that your roof is aging and needs professional inspection. Fireplaces and chimneys are also a fire hazard if not well maintained. Therefore, chimneys and fireplaces should also be cleaned and checked regularly at least once a year.

• Fire alarm

It is a good idea to have your roof inspected at least once a year. That doesn’t mean you have to risk injury every year to climb onto the roof and inspect it. Instead, it’s enough to just look at the shingles to make sure none of them are bent. If you see a lot of bent boards, this is a sign that your roof is aging and needs professional inspection. Fireplaces and chimneys are also a fire hazard if not well maintained. Therefore, chimneys and fireplaces should also be cleaned and checked regularly at least once a year.

• Insulation

It is a good idea to have your roof inspected at least once a year. That doesn’t mean you have to risk injury every year to climb onto the roof and inspect it. Instead, it’s enough to just look at the shingles to make sure none of them are bent. If you see a lot of bent boards, this is a sign that your roof is aging and needs professional inspection. Fireplaces and chimneys are also a fire hazard if not well maintained. Therefore, chimneys and fireplaces should also be cleaned and checked regularly at least once a year.

Things to consider when downsizing your home.

When planning your retirement, the first thing you think about is selling your current house and moving to a smaller house. It is not necessarily the reason for retirement, but it is because the large house they are currently living in is no longer needed as their grown children leave the house for employment or marriage. In addition, downsizing seems like killing two birds with one stone as you can raise extra funds by selling your house as your fixed income decreases after retirement and reduce maintenance costs. However, downsizing a home is not without its advantages. You may have to move from a neighborhood you’ve lived in for a long time, and your quality of life may suffer more than expected as your living space shrinks. Here’s what to consider when downsizing your home.

• Cut down the money.

Recently, housing downsizing is being actively considered not only by retired seniors but also by younger generations due to high inflation. A small-home developer said, “Recently, more and more people are looking to purchase a small-sized house. There is,” he said. The biggest benefit of downsizing your home is that it can reduce your mortgage payments, and it also reduces your home maintenance costs. In addition, property taxes, insurance premiums, maintenance and repair costs are also reduced compared to before, helping households.

• Market conditions

However, in the current real estate market, buying a new house and moving can be financially negative. This is because even if you move to a house that is cheaper than the current house price due to soaring mortgage rates, your mortgage payments will not be of much help or may even increase. Coldwell Banker Real Estate Agent Jeb Smith said, “For baby boomers who bought a house a long time ago, regardless of the size of the house, buying a home in the current real estate market can lead to higher mortgage payments. If he doesn’t come, it’s better to stay at home now.”

Also, it is not so easy to find the house you want due to the lack of stock in the recent real estate market. Therefore, rather than unconditionally trying to move to a smaller house to cut costs, it is worth considering renting some space in the current residence to create new income. In addition, rather than blindly purchasing a house without prior research under the firm belief that downsizing is unconditionally good, you should carefully review the current market situation and your own financial situation and put it into practice to prevent disappointment after moving to a new house.

• Check HOA regulations.

For those considering downsizing, condos or townhouses are the most common candidates for a new home. Usually, there is a Homeowners Association (HOA) in condos or townhouses, which imposes a management fee per household for community management. You must make sure that this management fee fits your current budget. You should also look at the HOA regulations. For example, some HOAs apply strict regulations regarding companion animals and prohibit tenants from operating businesses, so it is good to check these thoroughly before purchasing.

In most cases, if you move to a smaller size than your current residence, you will not be able to bring all your current household items into the new house. At that time, you can easily think, ‘Why don’t we rent storage for the surplus luggage?’. However, renting a warehouse can be more expensive than you think. According to the moving information platform Move.org, the average monthly rent for a warehouse rental is about $190. This could be higher depending on how heavy the client’s luggage is. In addition, regional factors are reflected in the price, so if you live in a big city, this cost may go up.

• Storage rent

Financial issues are the number one reason homeowners consider downsizing. However, when moving to a small house with only economic benefits unconditionally, various problems may occur, such as a decrease in the quality of life and the inability to take all household items with you. However, if downsizing can increase physical and mental satisfaction as well as economic benefits, it is worth actively considering moving.

For example, if managing a large house becomes too much for you after you retire and your daily life becomes inconvenient, planning to move to a smaller house is also helpful. Real estate experts advised, “For seniors, even cleaning one room can be a big stress,” and “therefore, even if moving is not economically necessary, if house maintenance is burdensome, it is worth actively considering downsizing.”

• Satisfaction

However, if your living space is reduced and you no longer have a garden to manage, and your daily life seems gloomier and more boring, you should reconsider downsizing your house. On the other hand, there is no need to conclude that this house is the last house in my life while moving. This is because a small house may not be right for you, or you may move again as real estate market conditions change. Also, you need to cut your spending right now, but you don’t know when or how your financial situation will improve. So, if you’ve planned to downsize, it’s better to plan with the peace of mind that you can move again at any time, rather than thinking that you’ll live in that house forever.

What to Check Before Submitting a Home Buying Offer

• What are the chances of a natural disaster?

Natural disasters caused by extreme weather are frequent. Homes located in areas prone to natural disasters are at risk of damage from disasters, but high home insurance rates apply. Areas designated as flood prone areas by the federal government must purchase additional flood insurance in addition to regular home insurance. Earthquake-prone areas such as California also require earthquake insurance, but insurance premiums are not cheap.

• Why did you give up your house?

Sellers sell their homes for a variety of reasons. Some sell their homes to move to a larger one, and conversely, there are also purposes to ‘downsize’ to a smaller house. In addition, there are various reasons for selling a house, such as suddenly selling a house while changing jobs. Knowing why the seller is selling the home can be used to your advantage when negotiating the terms of the sale.

•  What is included in the sale?

In general, furniture or equipment that is semi-permanently fixed to a house building is included in the sale of a house. For example, kitchen facilities such as wall-mounted cabinets, dishwashers, and ovens are included in the sale. However, each state has slightly different rules, so it’s a good idea to specify in the purchase agreement what furniture or fixtures are included in the sale.

Ceiling fans, chandeliers, curtains, etc. installed on the ceiling can be seen as fixed fixtures, but it is common for sellers to take them off when they move without specifying them in the sales contract. In addition, if there is an item you like, such as a custom-made refrigerator, be sure to specify it in the contract after negotiating with the seller.

• Was there any unauthorized construction?

It is often seen that the building records maintained by the county property tax office and the listing description are different. For example, if the actual number of bedrooms is 4, but the county document records 3, it is a property with additional bedroom construction.

However, if there is a difference from the county documents, it is possible that the construction was conducted arbitrarily without following the construction regulations. There may be the hassle of going through the process of reissuing a permit after purchasing a house, and there is a possibility of a property tax increase due to a change in the housing market price.

• How old is the roof?

There is no house without a roof. However, the age and condition of each roof varies greatly. Replacing an old roof is expensive. Defects in the roof not only lead to serious defects, but also result in high repair costs. If a roof defect is found, the mortgage lender may require repairs as a condition of loan approval. If there is no roof age in the listing description, you must check with the seller before deciding to purchase to prevent large expenses.

• How old are the home furnishings?

The house is equipped with several facilities. In order to enjoy a pleasant living environment, various facilities such as air-conditioning and heating facilities, water heaters, water facilities, and electrical facilities must operate properly. Each type of home equipment has a lifespan, and older equipment has a high risk of failure.  You can check how old each type of equipment is, and if any equipment has reached the end of its life, you can request a replacement from the seller. If you have recently replaced equipment or appliances, ask for a quality warranty issued by the manufacturer to ensure that they are properly used in the event of a breakdown.

• Do you have any records of insurance claims?

Ask the seller for a Comprehensive Loss Underwriting Exchange (CLUE) report, which is an insurance claim document, and check it. Through the insurance compensation record system ‘Clue’, you can check the home insurance compensation records claimed for the past 7 years. If you ask the seller to issue a clone report and review it, you can find out what kind of damage has occurred through past insurance claim records. Clue is a data network that shares insurance claim information among home insurance companies. It is used by insurance companies for the purpose of calculating insurance premiums, and it is helpful to determine whether the property has been damaged in the past because detailed records such as the date of application for insurance claim, type of damage, amount of compensation, and whether compensation was approved are recorded.

• Who lives next door?

There are many buyers who regret buying a house only after seeing it. What is more important than the house is the atmosphere of the neighborhood and the character of the neighbors. No matter how good the house is, if a noisy neighbor lives next door, you cannot avoid inconvenience while living. First, ask the seller who lives next door. It’s also a good idea to visit the house and chat with your next-door neighbor for a while. If talking directly with neighbors is burdensome, you can visit the neighborhood at different times to check the noise level and parking situation.

• What are the safety risks?

It is best to avoid listings with disclosed risk factors such as lead-based paint, mold, and radon gas, no matter how favorable the other conditions. Not only is getting approved for a mortgage loan difficult, but the health risks are too great.

If a seller discloses past risk factors, they must ensure that follow-up measures have been properly implemented. If risk factors are pointed out through home inspection, additional inspection through a professional company is required, but additional costs are incurred.

There are many advantages to buying a home at the end of the year. This year has been a year of great change in the housing market. As mortgage rates soared, home sales plummeted, and home prices turned downward. At this time of year, housing sales slowdown due to seasonal factors.

On the other hand, there are buyers who are just waiting for this period to prepare their own home. This is to enjoy the many benefits that occur when buying a house at this time of the year. Go woo Banking Rate, an online financial information company, summarized the advantages of buying a house at the end of the year.

• ‘Let’s sell quickly’ sellers increase.

Why are you putting your house up for sale at the end of the year? If you think about the answer to the question, ‘Does anyone want to move during the holiday season? The reason homes are put up for sale at the busiest time of the year is because there is a need to sell quickly. There are many intentions to sell the house as soon as possible while enduring inconvenience during the year-end holidays when you should have a good time with your family. In addition, the number of buyers looking for a house is decreasing, so the end of the year is a good time to buy a house to avoid competition with other buyers.

• New Home Incentive Benefits

New home sales are also plummeting amid a contraction in the housing market. New home sales in September were 603,000 units, down about 11% from the previous month. Homebuilders who have fallen on fire are finally starting to increase sales of new homes with various incentives.

Regardless of housing market conditions, you will see homebuilders offering various incentives towards the end of each year. Most of the companies set a target amount to sell before the New Year, and among the already built houses, houses that do not sell by the end of the year are given a chance to purchase with rich incentives.

• Tax savings when filing next year’s tax return.

Year-end home sales offer tax savings to both buyers and sellers. Buyers are expected to benefit greatly from tax savings by using property taxes and mortgage interest arising from the purchase of a home as income deduction items when reporting taxes.

Some sellers take a loss as a tax-saving strategy and sell their home at a lower price at the end of the year. It is a strategy to reduce taxes through losses through the sale of houses when a tax bomb is expected due to high other income that year. In addition, buyers who purchase real estate for investment use the purchased real estate as a tax reduction strategy when reporting next year’s tax through the “Cost Segregation” method.

• Opportunity to see the real face of the property.

There are big differences by region, but most regions have worse winter conditions than summer. In some areas, heavy snow falls, and in others, the rainy season begins in winter. Therefore, the end of the year is the time to see the actual appearance of the house that came out in such adverse climate conditions.  Houses with defective roofs are prone to water leaks during the rainy season, and leak marks often remain on the ceiling. A house with a lot of leaves accumulated in the front yard means that there is a lot of cleaning distance. Winter is the time when the grass does not grow well, and the dead lawn repair is clearly revealed. Even though the house came out at the end of the year, if you don’t see these problems, you can judge it as a well-maintained house.

• Lower moving costs

In spring and summer, when housing transactions are crowded, it is difficult to avoid competition and buy a house, but there are many inconveniences even after purchasing a house. As this is the peak time of the year for moving, not only are moving costs skyrocketing, but it’s also common to have difficulty booking a moving company.

On the other hand, at the end of the year when demand for moving is low, it is easy to find a moving company and there are many opportunities to reduce costs. At the end of the year, not only the moving industry, but also the home repair and remodeling industries are quiet. The end of the year is much better than the summer season when it comes to carrying out necessary repairs or remodeling after purchasing a house.

• Smooth home buying process

When a home purchase contract is signed with the seller and escrow is initiated, several steps are taken before ownership of the home is handed over. There are several procedures such as mortgage approval, home inspection, home appraisal, title documents, and home insurance, and a company in charge of each procedure is selected separately.

In the summer season, when housing transactions are crowded all at once, it is difficult to find these companies related to housing sales, but as the workload increases, it is easy to cause delays in each process. If unexpected delays occur, delays may occur even during the escrow period concluded with the seller, resulting in losses on the buyer’s side. On the other hand, at the end of the year when housing transactions decrease, it has the advantage of being able to stably proceed with each house sale process.

• More time to deal with agents.

The role of a real estate agent is very important when arranging my home. Finding a competent agent will help you smoothly purchase the ‘dream home’ you have always dreamed of. No matter how competent an agent is, if the agent is too busy, he or she may neglect customers unintentionally.

This is a common occurrence during the summer when customers are flooded with inquiries about buying a house. This inevitably happens when one agent deals with multiple clients. At the end of the year, however, things change. Since customer inquiries are rare, it is a time to deal with customers more, and it is a time when you can accurately identify the demand that customers want and efficiently search for properties.

• Home invasion theft prevention

Summer is the time of year when home theft is the most common. Petty thieves are rampant in July and August when many people go on summer vacation and the house is vacant. There is another reason why home break-ins and thefts are soaring currently. This is because it is a time when housing sales are frequent, and it is easy for buyers to break into a house when they are not familiar with the locking device of a new house. Buying a house at the end of the year, when housing-related theft is on the decline, also helps prevent crime.

How to make the most of your home warranty

• A different concept from home insurance

If your home breaks down, you can be compensated in two ways: home warranty and home insurance. However, there is a big difference between the two methods, such as the target of compensation and the scope. First of all, a home warranty is a service contract, not insurance. In the event of a breakdown in major housing facilities such as various home appliances, electricity and water facilities, air conditioning and heating facilities, repair or replacement services can be provided through Home Warranty.  On the other hand, facilities related to housing structures, such as windows and doors, are excluded from home warranty coverage and must be claimed through home insurance. Property damage or property damage caused by natural disasters such as fire, flood, earthquake, or crime is also compensated through home insurance, not home warranty.

• Various reasons for refusal

The range of requests for repair or replacement service through the home warranty is quite wide. However, it is common for service requests to be rejected for various reasons, such as the cause of failure and usual maintenance conditions.

• Failure time

One of the most common reasons for rejection is related to the timing of the failure. Failures that have already occurred before signing the home warranty service contract are excluded from service. It is also common to subscribe to a home warranty for the purpose of repairing an existing breakdown, but only pay the service application fee without receiving the service.

Home warranty companies have a service grace period to prevent misuse by some homeowners. Most of the contracts include repair or replacement only in the case of a breakdown that occurred 30 days after signing the service contract.

• Mismanagement and incorrect installation

If the cause of the failure turns out to be poor management, the service request is likely to be rejected. You can receive repairs from a home warranty company only if a malfunction occurs despite proper maintenance as per the user manual. In addition, if the home appliance is not installed properly or if the safety regulations of the jurisdiction are violated, the service is excluded.  Although the cause of the failure is covered by the service, if it is repaired through a separate external repair company, compensation will not be provided. Home warranty service is performed only through a repair company selected by the home warranty company. If the repair was performed through a repair company that was separately recognized or the homeowner himself repaired it, it is a ground for refusal of service.

• Abnormal use and secondary damage

Only failures caused by daily use are included in the home warranty service. If the home warranty company determines that the cause of the failure is due to abnormal use, the service request is likely to be rejected. For example, damage caused by children playing on the open door of a dishwasher cannot be compensated.  Nowadays, every household has a pet. Damage caused by pets is also not included in the home warranty service. In addition, a service request cannot be made for secondary damage caused by a failure of home appliances. Damage to carpets or hardwood floors from overflowing dishwashers is not covered under the Home Warranty. In this case, it’s better to ask your home insurance company for coverage rather than a home warranty.

• Repair only within limits

Even if it falls under a breakdown subject to repair or replacement, home warranty companies do not provide unlimited service. It is common to stipulate a limit on annual repair costs for each category of home appliance or a limit on total annual repair costs, and if this amount is exceeded, the service request is rejected. Each company has a little bit of a limit, but in the case of small appliances, most companies limit it to $500 per year or $50,000 in annual total repair costs. Even if a home appliance repaired through the home warranty fails again, it is difficult to receive a re-service if the repair cost limit is exceeded. Therefore, it is also important to properly manage service requests so that the repair cost limit is not exceeded.

• Service billing process

If an appliance or home facility has a breakdown, review your home warranty contract to see if it is covered. If it is judged to be included in the service target, request a repair. Upon receipt of a repair request, the home warranty company will usually contact you through the subcontractor and schedule a visit within 48 hours. A repair shop that visits your home does not always carry out repairs. After checking the cause of the failure and writing a report on it, repairs are carried out only after approval from the home warranty company. The cost of joining a home warranty varies depending on the size of the home, the scope of coverage, the company and the area where the home is located, but it is usually in the range of $300 to $600 per year. Apart from the subscription fee, a fee is charged for each service request, which usually ranges from $50 to $150.

If you pay only this fee, the rest of the repair or replacement cost will be borne by the home warranty company. However, care should be taken when requesting repairs, as the repair service fee will not be refunded if the repair company that visits the home determines that the repair service is not covered by the repair service.

• Real-life lawsuits between HOAs and homeowners related to pets.

    1. Pets are not allowed for psychotherapy purposes.

    2. Chickens at high risk of avian flu

    3. I installed a pet dog snack stand in front of my house and got into trouble.

    4. HOA-related regulations should be reviewed and raised.

Selling a house is a lot easier if you have a lot of paperwork in hand.

    1. Home insurance policy     2. HOA documents      3. Repair record      

    4. Title report     5. Pre-Home Inspection Report    6. Market Analysis Report & Projected   

        Home Sales Estimates     7. A winning strategy to sell a house quickly at the right price

    8. Hiring a Broker

Remodeling is easily considered illegal if you do it yourself.

• Large tree removal

If there is a beautiful old tree in front of the house, it is good because it has a taste. However, sometimes tree roots grow toward houses and affect the ground or cause problems such as ruptured sewage pipes. In this case, unfortunately, the tree must be cut down before it carries over to more serious defects. However, just because it is a tree in the yard of my house, if the owner carelessly removes it, it may be illegal. In addition to fines, it is safe to leave it to a professional company because removing large trees is dangerous. The cost to remove a small tree is about $400, and the cost of removing a large tree can exceed $2,000. The average cost of removing a tree was found to be $1,200.

• Gas/Electric Range Replacement Work

A range is an essential kitchen equipment required for cooking, and there are two main types: gas range and electric range. In general, gas ranges with good thermal power are often used, and electric ranges are often installed in senior homes to prepare for the risk of fire. If an existing electric range is considered inconvenient and replaced with a gas range, permission is required, and a licensed professional must be consulted.  If the gas pipe is not connected, the gas pipe must be installed first, which is a dangerous operation that can lead to accidents such as gas leakage. In addition, the electric circuit installed for the use of an electric range must be completely cut off to prevent fire hazard. Depending on whether or not you have a gas line installed, replacing an existing electric range with a gas range will cost between $125 and $2,000.

• Interior wall removal

During the pandemic, as the need for individual space increased, the popularity of the ‘open floor’ structure temporarily waned. As the number of telecommuters decreases in the post-pandemic era, the demand for open floors is increasing again. To change to an open floor structure with an open structure, the wall blocking the interior space must be removed, but hitting the wall with a hammer carelessly can result in fines and serious defects in the house.

Some walls are simply installed to divide space or for decoration, but some walls have supports installed inside the walls to support the roof and the house building. Special attention is required because damage to the supporting beams poses a serious risk to the safety of the building. Therefore, to carry out the construction of an indoor space, a safety diagnosis and permission from the relevant building department must be obtained. According to Home Advisor, a housing information company, interior wall removal works range from $300 to $10,000 depending on whether there is a supporting tree and whether it is on the first or second floor.

• Air conditioner replacement

It’s time to check the air conditioner ahead of the summer when the temperature rises. If the air conditioner does not work properly, it needs to be replaced, and DIY replacement of the air conditioner is also illegal. When replacing an air conditioner, the gas used for cooling tends to leak out, but when the gas is inhaled into the human body, it leads to fatal human damage such as dizziness, respiratory disease, and even suffocation.  Most cities make it illegal to directly replace air conditioners due to damage to the human body. If the air conditioner manufacturer discovers that the air conditioner has been replaced by the owner, not a professional company, the product warranty contract will also be canceled, so be careful. In order to use the air conditioner for a long time without frequent replacement, it is helpful to have it inspected regularly. The air conditioning inspection service costs between $75 and $200.

• Water heater replacement

Water heaters that supply hot water to the house are also divided into two types: those that use electricity and those that use gas. The voltage used in general households is 110 volts, but the voltage connected to electric water heaters is 220 volts. It is easy to cause safety problems when replacing a product that uses high pressure, and in the case of direct replacement, accidents involving incorrect connection to 110 volts instead of 220 volts often occur.

If the gas pipe is not properly connected when replacing the gas water heater, fire due to gas leakage and poisoning due to carbon monoxide leakage may occur. Nevertheless, there are many ‘brave’ homeowners who want to replace their water heaters themselves, which is a risky undertaking. In the case of water heater replacement work, it is around 1,200 dollars including a new product and labor cost.

• Deck installation work

One of the popular remodeling during the pandemic is deck installation. Many homeowners started installing decks as a function that connects indoor and outdoor spaces. However, if the deck is installed incorrectly, it is easy to cause a fall accident or a collapse accident. Therefore, almost all cities stipulate that deck installation work be prohibited without permission, and the permit issuance process is also managed in a strict manner. Be sure to get a permit, as a house with a deck installed without proper permits will be a problem when you sell it later.

A deck is also installed outside the two-story house building to extend the living room or bedroom. The lifespan of a second-floor deck, also called a balcony, is approximately 12 to 15 years. The fastening device that connects each timber of the deck rusts or corrodes over time, making it easy to cause defects in the connection and support function, and it is easy to lead to a collapse accident.

Costs you will incur when selling your home and how much you can expect

• How much does it cost to sell a house?

It is a fee paid to a real estate agent who acts as an agent for buying and selling a house, and it amounts to 5% to 6% of the sale price. If the transaction price is based on $500,000, the commission fee alone will incur between $25,000 and $30,000. The agent’s job is not only to find buyers, but also to manage the show wing, which is the process of showing the house, to negotiate offers, and to handle the escrow process.

It’s rare to see a house for sale these days. After remodeling and staging work, many properties are decorated like new pre-sale homes. A listing preparation like this also costs a lot of money. There are other costs when selling a home, such as repairs, closing costs, mortgage payments, moving costs, storage costs, and more.

• Brokerage fee

The biggest cost is probably the brokerage fee. When selling a house, two agents are often involved. Two agents, the listing agent and the buyer’s agent, assist the seller in selling the house. The brokerage fee is generally borne by the seller and is divided between the listing agent and the buyer agent.  According to real estate company Redfin, brokerage fees range from 5% to 6% on average. This translates into a fee of between $5,000 and $6,000 for every $100,000 in sales. Brokerage commission is not a rate set by regulations, so it can be adjusted through negotiation with the agent. In times like these days, when houses are selling quickly or when the listing price is high, the commission rate is set low.

Some sellers sell their homes directly due to the burden of commission costs. It is a so-called ‘FSBO’ (For Sale by Owner) transaction, which can save fees, but all the tasks and responsibilities that the agent should oversee are returned to the seller. Often, when the housing market is good, FSBO transactions increase, and last year, FSBO transactions accounted for about 11% of all housing transactions.

• Listing preparation work

The saying that you have to spend money to make money applies here. These days, it is rare for sellers to just put out a house when they put it on sale. There has been a significant increase in the number of listings that go through the home staging process to make listings more attractive. Home staging is mostly carried out by professional companies, and it is a kind of interior work that emphasizes the advantages of the house as much as possible while minimizing the disadvantages. It is a task to rearrange existing furniture, add appropriate furniture, and use other props to maximize the advantages of the property.

• Pre-Home Inspection

Home inspections are known to be conducted by buyers, but not necessarily. Many sellers conduct a home inspection to determine the condition of the home before putting it on the market. If you repair any malfunctions or defects discovered in advance before you put the house on sale, you can prevent the contract from being canceled in the middle and help you get the right price.

The cost of a home inspection also varies depending on the size and location of the home but is generally over $400. Defects found through a pre-home inspection are obliged to be disclosed to the buyer during the same period. When repairs are carried out, housing transactions often go smoothly if the buyer is notified of the repair items along with the home inspection report.

• Pre-repair

Some problems were discovered through home inspections, while others were identified in life. An agreement is reached with the buyer by reducing the sale price or providing repair costs for problems discovered or disclosed during the housing transaction period. However, cleaning up the house before putting it on sale usually saves money on negotiating with buyers and makes the deal easier.  Repair costs vary greatly depending on the type of defect. If a defect is found in the ground, the repair cost will exceed at least 10,000 dollars, and depending on the size of the construction, the repair cost can become astronomical. If a defect caused by mold occurs during a housing transaction, the repair process is complicated, and the contract cancellation rate is high. Therefore, if mold is found through a preliminary home inspection, it is good to treat it in advance, and the average treatment cost is around $ 2,218. In addition, repair costs such as roof replacement, heating and cooling system replacement, and septic tank replacement are easily over $10,000.

• Mortgage Balance Payment

It is a miscalculation if you think that the amount obtained by subtracting the purchase price from the selling price is the capital gain. If you took out a mortgage loan when you bought your house, the amount after deducting the balance of the mortgage is the actual capital gains. For example, if a house is sold for $500,000 and the mortgage funds are $400,000, $300,000 during the escrow period is paid to the lending bank to pay off the mortgage balance. Therefore, the transfer gain is $200,000, and various expenses such as brokerage fees are paid from this amount.

Serious flaws that can be found through a home inspection.

• Electrical panel

Every house is equipped with an electrical panel called a toad house. An electrical panel, also called a fuse box or circuit breaker, is a device that prevents damage such as fire by cutting off the circuit when an overload, short circuit, or short circuit occurs. However, in some houses, there are cases where the circuit breaker function does not work properly and the old product is used as it is, and it needs to be replaced immediately upon discovery.

Not only have products made by companies such as Federal Pacific, Bulldog Push Matic and Zinsco not only have malfunctioning circuit breakers, but they have been around for decades. You are not manufacturing a product. Nevertheless, it is often reported that houses with products from these companies are installed during home inspections, so it is necessary to replace the products immediately upon discovery. Replacing it with a new electrical panel will cost around $5,000 to $6,000.

• Old deck

A deck is an outdoor space installed outside a two-story house building as an extension of the living room or bedroom. The longevity of decks, also called balconies, is rarely well understood. Decks, which are usually built with wood, have a lifespan of 12 to 15 years, after which periodic safety inspections are required. The part to be checked carefully is the ‘fastener’. The fastening device that connects each piece of wood rusts or corrodes over time, causing problems with its connection and support functions.

If the fasteners do not function properly, building damage and serious loss of life may occur due to deck collapse. Also, decks made of wood are prone to damage from termite. Termites are wood-eating termites that are often found inside seemingly intact deck lumber in a dangerously hollow interior. Houses with wooden decks must be diagnosed by a termite inspection company. Expect a cost of at least $10,000 to $15,000 to replace a deck with a new one where the old deck is badly defective.

• Chimney

A house with an indoor fireplace must have a chimney installed outside the building to discharge smoke and toxic gases. It is nice to have a fireplace, but defects in the chimney lead to expensive repair costs. If a small crack develops in the chimney, part or all of the chimney must be demolished and rebuilt. If the chimney begins to break apart from the building due to damage such as an earthquake, it is in a more serious condition and must be demolished immediately and newly installed. The cost of replacing a chimney can easily exceed $20,000.

Water pipes made of polybutylene were widely used in housing construction in the 1980s. In general, gray-colored polybutylene water pipes frequently suffer from water leaks due to faulty connections, and a class action lawsuit has already been filed. Nevertheless, many houses still use polybutylene water pipes, and replacement is often recommended when found through a home inspection.

• Aluminum wires

During the Vietnam War, copper prices soared, and many houses were built with aluminum wires instead of copper. Among the houses built in the 1960s and 1970s, houses with aluminum wires installed need to be replaced with wires made of safe materials such as copper because of the high risk of fire.  Aluminum wires have the property of weakening the wire connection part due to frequent expansion and contraction when heated. If the wire connection is weak, the risk of fire due to arc discharge inside the wall increases. Some insurance companies do not approve home insurance for homes with aluminum wires installed.

• Underground oil tank

Some houses have oil tanks installed in the basement. In winter, when the temperature drops significantly, it can often be seen in areas requiring heating, but there are often houses with oil tanks installed in California. The biggest problem that can occur in a house with an oil tank is environmental pollution. If oil leaks due to poor tank management, soil contamination problems arise.  Dealing with soil contamination is a very cumbersome and costly process and cannot be covered by insurance. Older oil tanks are often single-walled and are prone to spillage due to corrosion or defects. If soil contamination occurs due to an oil spill, it takes a long time to remove all the soil in the contaminated area and wait for the toxic components to dissipate.

• Roof rescue

Several ‘trusses’ are installed between the ceiling and the roof to support the roof. However, if the supporting timber is changed for a different purpose, it is easy to cause serious damage to the roof, leading to damage such as water leakage or building structural defects.

In the process of installing a pull-up staircase to access the ceiling (attic) space, it is common for damage to the support tree to occur. In addition, some support trees are removed to make space for installing air conditioners or heating devices. If the support beam is removed, it causes a serious defect in the building structure, so a safety diagnosis through a structural engineer is required.

• Ground fault

Defects in the ground can affect the structure of a home building, so it is a serious problem that warrants reconsidering the purchase of a home. Because defects such as ground subsidence occur gradually, it is often difficult to find them even while living in a house. If signs are found outdoors, ground subsidence has already progressed considerably, and a thorough inspection by an expert is required. Signs of ground subsidence can also be found indoors. Signs of ground subsidence include cracks in the floor baseboards, cracks in the floor baseboards, cracks in the floor, or when the corners of the interior walls are widened by more than 5 millimeters, or the floor is tilted to one side.

Types of answers to pay attention to buyers’ questions.

• I moved my job.

Many people must move to a new job or sell their home with a transfer order. According to a survey by moving company Allied Van Lines, 17% of customers move to a new home because they have to change jobs. It’s an obvious reason to sell your home, but being honest with the buyer only increases your chances of getting a “low-price offer.”

If you have received a transfer order or want to move to a new job, you must sell your house and move to a new house within a specified period. Therefore, it is easy for buyers to think that the seller will have to sell the house quickly, regardless of the actual circumstances. Buyers who judge sellers to be impatient tend to offer low-price offers.

• increase in family size.

I bought a new house ahead of my wedding, but as the children grow one by one, the need for a bigger house increase. When children grow up, the indoor space that used to be comfortable may feel cramped at some point. It’s a sure sign that you need to move to a bigger house, but if you’re honest, it’s easy for buyers to misunderstand you.

Needing a bigger house may sound like the one you currently live in is small. If the number of buyers who come to see the house is the same or more, it is just an act of sending the buyer away because there is no reason to buy a house that the seller feels small.

• to retire to a small house

Baby boomers have the highest home ownership rate of any generation. Currently, the housing market is experiencing a serious shortage of listings, and it is expected that this will be alleviated to some extent when these baby boomers sell their homes. Another thing baby boomers should be careful about when selling their homes is to keep an eye on their mouths. The biggest reason baby boomers are selling their homes is because their grown children have left home.

When the children leave a home that felt cramped, the home feels larger and unnecessary space begins to stand out. If you talk about selling a large house and downsizing it to a smaller house for retirement purposes, it is easy for buyers to misunderstand that there will be a lot of unnecessary space and only maintenance costs will be incurred.

• The mortgage burden is high.

Many homeowners are struggling with the burden of paying their mortgage due to the sudden rise in mortgage interest rates. Among buyers who bought a house in the past year, many buyers regret buying a house because of the higher-than-expected payment burden, and some end up putting the house back on the market.

Having to sell a home because of a mortgage payment burden means that the seller’s financial situation is not good. It’s easy to see that you’ll be interested in a low-priced offer because you have a clear reason to sell quickly.

• I have already bought a new house.

Buying a new home to move into before you sell your current one can be something to brag about. However, if you brag to the buyer, you will get caught up in price negotiations on the part of the buyer. Owning two houses means that the cost is leaking twice as much.

Mortgage payments for both houses, as well as property taxes, insurance, and maintenance costs, are accumulating day by day until the house is sold. To reduce these costs, you need to sell your home quickly. Buyers will try to take full advantage of this impetuous seller’s psychology and put forward a bargain offer strategy.

• I’m in the process of divorce.

The seller, who is in the process of divorce, will give up the house on the order of the court. This is because the property can be distributed, and the divorce process can be completed only when the house is sold. In my heart, I would like to sell my house cheaply and finish the divorce case as soon as possible.

However, you should not seek inner peace and spit out the story that you are getting divorced. There is a high possibility that the house will be sold to a buyer who presented a low price targeting the seller’s urgent mind. After all, it is hard to avoid regret following the low sales revenue after divorce.

• Utilities bills broke my back.

Eco-friendly homes that reduce energy costs are popular. That’s also because utility costs continue to skyrocket year after year. This year, there are quite a few homeowners who are surprised to see their gas bills and other heating bills.

One survey also found that the average energy cost per household exceeds $2,000 per year. Few buyers check utility bills when making a home buying decision. But if you put your home up for sale because of high utility costs, then intimidating it will inevitably have a negative impact on a buyer’s decision to buy a home.

• to go to a quiet town

Location is very important when buying a home. However, it is up to the buyer to make a judgment on location conditions, and be very careful in answering related questions, even if they are good points. The answer that you are planning to move to a quiet neighborhood is bound to sound like a noisy neighborhood.

Even the answer that the neighborhood we live in is quiet may sound negative to some buyers. Some young buyers want to enjoy outdoor activities until late at night, but quiet neighborhoods are not suitable for these buyers.