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Know your limits when it comes to DIY

Four questions to ask before tackling a project yourself

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DIY, gay news, Washington Blade
That leaky faucet or toilet could cost much more as a DIY project if you don’t know what you’re doing.

DIY—Do it yourself—is all the rage. With the constant reminders from Instagram and HGTV, many people get caught up in self-redecorating and repairing. People are painting rooms, changing doorknobs, trying to hang wallpaper, adding flagstone paths and much more. Some home projects are fun and simple. With so much time at home these days, it’s easy to see why so many are taking on DIY projects.

DIY improvements can be challenging and give you a great sense of accomplishment. DIY can help you change up your home’s style. DIY can sometimes save you some money.

DIY decorating is one thing. DIY repairs, however, are another. In the past, I am sure your trusty DIY partner—YouTube—has been right there by your side as you installed a new backsplash or taped off molding before painting a room. However, there is a chance YouTube, combined with your inadequate skill level, has no business trying to repair some home issues. While the same tenets of enjoyment and accomplishment that you get from design projects can apply to repairs, many times trying to repair something yourself can cause bigger issues and cost you more money immediately or in the future.

So how do you know when a project is just too much for you to tackle on your own? Here are four questions to ask yourself before you take on a DIY repair.

Is it safe? Stop and think about the project at hand. Is it safe for you to tackle? Have you worked on something similar in the past? Is the repair easy to get to or do you need a ladder? When thinking about safety, electrical repairs immediately come to mind. The job may look as simple as connecting two wires, but doing the job incorrectly can be a true safety hazard either immediately or down the road.

Will a botched job affect your neighbors? What if you can’t stop the water as you attempt to repair your toilet or sink? While it may look like the water would stay contained to your unit, water moves in mysterious ways. It can seep down between floors or even under walls and across to your neighbor. Flooding your condo, your neighbor’s, or your common hallway is an uncomfortable position to be in. And if you damage community property, or your neighbor’s unit, your DIY repair has just gotten really, really expensive.

Do I have time to do this twice? Sure, from your YouTube research the project looks like it will take no time at all. But, what if you mess up or can’t complete the project? Do you have time to call in a professional to correct your mess up? Let’s say you only have one bathroom and midway through the project you realize you can’t repair your toilet before the end of the day and need to call in an expert to help. If you are calling after hours, it’s a long wait until the morning or an expensive emergency after-hours charge.

Are you ready to pay for the repair twice? If you go the DIY route, you might feel like you are saving. You may think you can find less expensive parts and save on labor charges. But, if you have to follow up your attempt by calling in a professional, you will likely have to pay for parts twice in addition to the cost of the professional’s labor.

Home improvements and repairs are a normal element of home ownership. Maintaining your home is important for you while you own and live in the house. Repairs and upgrades will also pay off when you go to sell. Add to that, deferred maintenance can be very costly. But before you tackle that project, stop and analyze the best route to take. DIY can be enjoyable and gratifying, but sometimes we just need to know our limits and when it’s time to call in a professional. If you want to see an example of a DIY pipe repair gone wrong, check out my YouTube channel for last week’s episode of my Thursday Thoughts series entitled DIY: Know Your Limits.

Sherri Anne Green is an award-winning Realtor with Coldwell Banker Residential Brokerage having earned the prestigious International President’s Circle Award designating her among the top 5% internationally. Reach her at 202-798-1288, [email protected], on Facebook, and on Instagram.

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Real Estate

Consider buying a beach house with a group of friends 

A lawyer can ensure everyone’s rights are protected

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Enjoy weekends at the beach? Why not invest with a group of friends?

A trend that we are seeing across the boards (get it…like boardwalk) as we head into summer, aside from the swimsuits getting smaller and smaller, is friends buying homes together. Buying a property with another individual is not only an option for those in a relationship, marriage, domestic partnership, business etc. but also friendships.

With the pandemic and the increase of people wanting to move out of their small spaces in the city and leave for the more bucolic settings, the trend has been to ask your roomie, kiki partner or other friend to go halfsies on your primary residence. Why pay rent when you can have an investment and build equity in your home, right? Well why not take that approach for a second home at the beach? You will likely have the beach house to entertain and have friends over for weekends or weeks during the summer so let’s get them on the hook for more than just a few bottles of vodka or boxed wine. Let’s get their names on that mortgage.

With the rising market prices your borrowing power is stronger as a collective. Think of your group that you head to the beach with. How many of those folks would love to have a space at the beach? Likely all of them. If you can only afford $200k but three of your best friends can also only afford $200k then collectively you can afford $800k. Using simple terms and numbers here, but I trust you are tracking. 

Now that you have found those select few that you implicitly, or mostly implicitly trust and are financially stable let’s now consider the actual items that matter in practice such as (1) how you will split up days, weeks etc., (2) how and who handles/coordinates repairs to the property, (3) what happens if you no longer enjoy this person or someone wants out of the house and they’re on the mortgage? This is where a lawyer comes into place and can advise on creating an operating agreement similar to what a business or corporation would have in place to ensure that all parties in the home are protected and each has their own rights as well as common rights for the home.

I know what you’re thinking, this sounds a little dicey, but I know if you’re reading this, that you have likely been in dicier situations, and for those who really want a beach house to enjoy but might not have the capital to do so, this is a great option. Instead of renting a beach house for the season and paying high season beaucoup bucks, why not get a few friends together to buy a beach house together?

Justin Noble is a Realtor with Sotheby’s international Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware Beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin is a well-versed agent, highly regarded, and provides white glove service at every price point. Reach him at 202-503-4243, Justi[email protected] or BurnsandNoble.com.

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Real Estate

How do Federal Reserve decisions impact mortgage rates?

Don’t panic, recent increases not as dire as some fear

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Will the increased rates mean fewer buyers? Not necessarily.

Recently, the real estate market has been incredibly active. In many neighborhoods, it seems that a for sale sign is scarcely placed in the front yard before multiple offers, even some above asking price, roll in. In many cases, this was made possible by relatively low mortgage rates, which enticed buyers to get into the market and make those offers. Recently, however, there have been concerns about the state of the economy and increased inflation – furthered by the recent news that the Federal Reserve has raised interest rates.

This increase has understandably left many potential homebuyers wondering – what does this mean for mortgage rates, and my ability to obtain the loan I need to purchase a home? It has also left sellers asking – will the increased rates mean fewer buyers? Will it be harder to sell? These are important questions to ask. While no one has a crystal ball, many remain hopeful that the real estate market will continue to thrive. Let’s take a closer look at why together.

The Federal Reserve – Why it Matters

The Federal Reserve is the central bank of the United States, and among its many functions, it essentially guides the national economy. Part of that mission is keeping inflation under control. Recently, in an attempt to slow ever-increasing inflation, the Federal Reserve raised short-term interest rates by half a percentage point. Short-term interest rates are essentially the interest rates that banks charge one another for short-term loans.

It’s been some time since the Federal Reserve has made a move of that nature – slightly more than 20 years in fact, with the last such increase occurring in 2000. The Fed also indicated that more adjustments may be planned before the end of the year. Certainly, this raises the question – what does this mean for mortgage rates?

Federal Interest Rates Vs. Mortgage Rates

It’s important to understand that the Federal Reserve does not actually set mortgage rates – there is in fact no such thing as a “federal mortgage rate.” Ultimately, the decisions of the Federal Reserve don’t directly impact mortgage rates in the same manner as with other products, like savings accounts or CDs, for example. Mortgage rates generally respond both to the actions of the Federal Reserve, as well as to the general movement of both the United States and global economies, so there are many factors to consider.

Nevertheless, those in the mortgage industry do closely monitor the actions of the Federal Reserve, and certainly, how much buyers pay for a home loan is influenced by those decisions. As a very rough rule of thumb, for every one point increase by the Fed, your buying power goes down by $100,000.

When the Federal Reserve makes it more expensive for banks to borrow by setting a higher federal funds rate, the banks typically pass on those higher costs to their customers. This ultimately means that interest rates on consumer borrowing, which includes mortgage rates, tend to go up.

Keeping it in Perspective

While any increase in mortgage rates may not be welcome news for buyers, it’s important to keep these increases in perspective. Historically, the current interest rate, which is around 5 to 6%, depending on whether you have a 15 or 30-year mortgage, is still very low and very favorable for buyers. At the end of the 1970s, for example, interest rates were hovering near 10%, only to ultimately reach an all-time high of about 16.5% in 1981 before eventually decreasing. Throughout the 1980s, however, mortgage interest rates remained near 10% – nearly twice what they are today.

Another potential silver lining is that increased rates may also mean increased inventory – which is certainly good news for buyers. While rates are still historically very low, the increase may nevertheless mean that there are more available homes to choose from, as the number of buyers in the market decreases overall. This could be a refreshing change of pace for those buyers who felt that they had minimal choices in a highly competitive market.

While this may not be the most welcome news for sellers, it’s not necessarily bad news either. As rates are still relatively low, there will still likely be plenty of potential buyers out there. When the present market is compared to the course of the real estate market over the last several decades, now is still an excellent time to sell.

At GayRealEstate.com, we are passionate about helping LGBTQ home buyers and sellers through every aspect of the real estate process – and that includes more than just buying and selling. It also includes addressing the important issues in the real estate market that matter to you the most. We believe in the importance of connecting LGBTQ buyers and sellers with talented and dedicated agents who can help. We also believe in ensuring that our clients feel informed, prepared, and knowledgeable about all aspects of the real estate process. You deserve nothing less. Whatever your real estate needs, we’re here to help.

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or [email protected].

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Real Estate

Rain. On. Me? Flooding a common concern among buyers

Always ask your insurance agent if you have the coverage you need

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Worried about moisture intrusion? If you’re buying a home, you should be.

One of the many concerns buyers of homes and condos have are moisture intrusion and how well the building is prepared for floods, heavy rains, burst pipes and if they have installed sump pumps and other things to help with moisture intrusion.

To find out how to handle these situations I had a call with a local insurance agent and asked her to give me her advice about being able to make sure you are covered if there is any type of water event that costs you money as a home owner.

In a condo, you will have the master insurance policy that will help if something outside of the walls of your home causes a moisture intrusion. You will also have your own homeowner’s insurance. The agent that I spoke to said to always make sure you SPEAK to your insurance agent and ask specifically about what is covered and what is not. Just getting an internet quote is not the same. There are also third-party companies that can help cover conditions that are considered “exceptions” by the insurance company so you are going to want be educated on that.

There is a difference between being in a flood plain, having a pipe burst, water leaking in around windows, having water back up into a home and having a sump pump fail. There is also a difference in the types of coverage you can get for these situations.

They are all filed under different types of claims, and you will want your insurance agent to walk you through the various types of protections you can purchase and if you need additional protection from a third-party company. A recent inquiry by a client of mine resulted in him being told that his property was not in a flood zone so the basement (which is finished) would not be brought back to its current condition. Only drywall would be replaced.

Always ask your insurance agent if you have the coverage you need and please shop around. Water issues seem to happen more frequently, so you want to be prepared. I am always available to discuss homeownership and how to make that happen – feel free to reach out.

Joseph Hudson is a Realtor with The Rutstein Group at Compass. Reach him at 703-587-0597 or [email protected].

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