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On the basic level of supply and demand, a housing shortage leads to higher home prices. But let's look beyond the obvious at a few other considerations a homeowner might want to make in response to a housing shortage, as well as a few tips for the prospective homebuyer. 

More Housing, Same Space

Wondering what the best investment you can make to raise the property value is? Creating extra housing within the existing footprint of the property is one of the best ways to go. Creating an attic or basement apartment in the existing home is one way to go, so is building an entirely new structure to house a granny flat. You could look into garage conversions, see if there are changes that could be made to any existing outbuildings, or break ground and start from scratch. In response to the housing shortage there are many laws being passed to make it easier for homeowners to receive approval for adding additional residences to their property, including simplifying licensing procedures and even overriding some HOAs, including one that just went into effect statewide in California. 

A Great Time to Sell the As-Is Home

A housing shortage doesn't just drive prices up, it can cause buyers to quickly snap up houses with cosmetic flaws that would normally linger on the market. If the thought of doing needed house painting or landscaping feels like it defeats the purpose of selling the home, then now might be the right time to put your home on the market. Additionally, if you'd already been planning to sell your home, but have continually been adding to a never ending list of projects to complete before selling, then now is the time to list, while the market is hot, even if you're DIY home improvements are still a far cry from perfect. 

Getting Into the Rental Market Is a Strong Income Source

If you're planning to purchase and move to a new home, you may want to re-think selling your current one. Although it may be a strong market for selling a home, the rental market could be robust. If you can afford to keep your current home, you may have an ideal income-producing investment on your hands. 

3 Tips for the Homebuyer During a Housing Shortage

If you're looking to buy a home during a housing shortage, don't despair of the shortage. You'll have luck, just expect it to take a bit longer and follow this advice:

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For many people, nothing beats condo living. As such, the demand for condos continues to grow, and many property buyers are relocating to condos across the nation.

Before you buy a condo, however, it is important to remember that condo living is different from living in a traditional house. Therefore, property buyers who plan accordingly can set realistic expectations for condo living.

How can a property buyer find out what it's like to live in a condo community? Here are three tips to help you prepare for condo living.

1. Learn About Condo Communities in Your Area

Condo communities come in all shapes and sizes, and you should take a close look at the condo communities in your city or town to find out what they're all about.

Even a quick drive through a condo community may prove to be exceedingly valuable. This will enable you to see the size and style of assorted condos, along with the distance between the properties themselves.

After you view a few condo communities, consider what you'd like to find in your ideal residence. This will enable you to compare and contrast your home must-haves versus what condos offer and map out your property search accordingly.

2. Meet with Current and Past Condo Owners

Do any family members or friends who currently live in a condo community? If so, schedule a meet-up with them so they can share their thoughts and views on condo living with you.

Nothing beats firsthand knowledge about condo communities. By meeting with current or past condo residents, you can better understand the pros and cons of condo living.

Be sure to come up with a list of questions before you meet with current or past condo residents as well. Remember, the more you prepare, the better off you'll be as you determine whether condo living is right for you.

3. Collaborate with a Real Estate Agent

A real estate agent has a simple goal: to help you find a residence that you'll be able to enjoy both now and in the future. As a result, this housing market professional can set up condo showings for you, allowing you to find out what it's like to live in a condo community.

In addition, a real estate agent can provide extensive details about what to expect if you decide to purchase a condo. This real estate professional can provide a copy of a condo community's homeowners' association (HOA) rules, inform you about any HOA fees and offer details about community pools and tennis courts that may be available to condo residents.

Perhaps best of all, a real estate agent is happy to offer honest, unbiased condo buying recommendations. He or she can provide you with plenty of information about a broad assortment of condos to help you make an informed purchase decision.

When it comes to browsing condos, don't leave anything to chance. Instead, collaborate with a real estate agent, and you can explore a variety of condos any time you choose.

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Buying property can be fun, but it can also be exhausting. You want to find a place that fits your personal lifestyle and invest in a home that'll bring you years of happiness. As you're looking at shorefront real estate:

1. Understand Your Access Rights to the Water

On the surface, it may look like a no-brainer that you have access to the water, but many people learn the hard way that their beautiful waterfront views don't have easements that allow access to the lake, pond, or ocean. Most people don't want a beautiful view of the water without being able to use it.

2. Know Your Waterfront Buffer Zones

State and local regulations may prohibit your landscaping plans from making forward progress if you're too close to tidal waters. Know the buffer zones before you buy so you're not stuck with a landscape you don't love.

3. Learn Your Littoral Rights

If you purchase waterfront real estate, you may very well be granted littoral rights—that is, you'd have unrestricted rights to use that water as though it was land. The government may also own the water up to a certain point, so it's best to gain this knowledge up front.

4. Know if You have Riparian Rights

If you purchase a non-riparian waterfront property, you likely won't be able to have a private dock or pier on the water. Since this is one of the major reasons people want to own waterfront property, it's important to understand these rights before you buy.

5. Understand Your Obligations Regarding Water Depth

You don't have any control over Mother Nature, but you do often have certain obligations in terms of what you're permitted to do in certain water depths. You may need to build a deck farther out into the water than you'd first anticipated in order adhere to depth regulations.

6. Look at the Fixtures Surrounding the Property

Certain watercraft, such as sailboats, need far more clearance than others. If your potential property is directly next to fixed-height bridges that wouldn't enable you to enjoy leisure time on your sailboat, that may not be the best home for you. Alternatively, people who enjoy kayaking wouldn't need to be concerned with fixed-height structures. In fact, those areas might be best for this type of buyer.

7. Research Regulations Impacting Docks and Piers

It's not atypical to have to purchase pier permits. Depending on your location, these regulations may be governed by federal, state, or local institutions. It's best to have an idea of the cost before you get your heart set on a single property.

8. Include Flood Insurance in Your Monthly Costs

Natural disasters can bolster the cost of flood insurance. Even if you think you'll never need it, a waterfront property is always best protected when flood insurance is calculated into the cost.

9. Know How Secluded You Really Want to Be

Waterfront real estate is appealing because it's quiet and serene, but if this will be your year-round residence, make sure you've taken winter into consideration if you're looking for lakefront property where snowfall can change the landscape quickly. Super-secluded spots can make it difficult to get to the store when blizzards hit, so you may want to look for a place that has easy access to shopping. However, if you're willing to rough it, or if you'll only be using the property in the summer, seclusion is a great way to go! Of course, if you're looking for beachfront property in Florida, parts of California or the Carolinas, winters won't really be a concern you'll have to worry about.

10. Explore the Pros and Cons of Private Beaches Versus Public Shores

There are pros and cons to each. Make sure you have an idea what you're looking for before you and your real estate agent start house-hunting, but be open to possibilities if your real estate agent has a property they insist you must see.

As you're shopping for waterfront real estate, be sure to keep these tips in mind. The more you know, the more likely you'll be to find a home that makes you happy for many years to come. Contact me if you have questions about buying waterfront property!

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If you're looking for loans with excellent interest rates, you may have heard the term USDA bandied about. This special type of loan is attractive on paper, but the reality is a little more complicated than what meets the eye. Learn more about what a USDA loan is meant to do, how to get one, and why the terms are so buyer-friendly. 

The Goal of the USDA 

The primary goal of a USDA loan is to infuse new life into rural communities. When people flock to cities, it causes rents to rise and small towns to crumble. A USDA loan is a way to entice Americans to renovate old homes and keep abandoned neighborhoods alive. These loans are backed by the government and issued by the lender. Because of the purpose behind the USDA, the applicant is judged more so on their general merits rather than their financial status. As long as the buyer is willing to commit to the property and the surrounding community, they're likely to be approved. 

Requirements of the USDA Loan 

Here are the key eligibility requirements for a USDA loan: 

• Location: The majority of USDA properties will be in rural areas. You'll need to research the homes available under the USDA umbrella before applying for a loan. 
• Credit score: The credit score minimum is ambiguous since the USDA loan is based on more than just straight financials. However, those with a credit score of at least 640 typically receive a fast-tracked application. This means fewer questions and underwriting from the lender and a nearly guaranteed approval. 
• Down payment: USDA loans don't require a traditional down payment. However, you will need to pay 1% of the loan to the lender if putting down less than 20% of the total loan. 
• Fees: There's a .35% fee every year for the entire course of the loan. The .35% is applied to the mortgage balance, meaning it decreases every year. 
• Interest rates: The lender sets the interest rates for USDA loans, but they can go as low as 1% in some cases. 
• Closing costs: Closing costs are typically between 1 and 3% of the total price of the home. 

It's worth noting that some USDA homes are in more populated areas, so you shouldn't assume a property is ineligible until you confirm. If you're unable to secure a USDA loan, you may want to consider an FHA loan. While the terms are not quite as attractive, FHA loans are also backed by the government. This gives people with lower credit scores a way to secure a property at a reasonable interest rate. 

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