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The five-step downsizing plan

Set goals and a budget — then de-clutter

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Before you downsize, you’ll need to de-clutter your home.

Are you considering downsizing? For any number of reasons, this might be a decision that makes sense at this point in your life. 

Perhaps you have children that are now grown and have moved out, or you entertained large parties and those days have passed, now having more space than you can use. Maybe you simply want less home to take care of and fewer chores on your to-do list. Perhaps you’d like a smaller mortgage, so you can put the extra money toward other things. Or possibly, you’re willing to pay a slightly higher mortgage so that you can have a smaller home in an area where you’ve always wanted to live. Whatever your reasons, if you’re thinking of downsizing, having a plan can be extremely valuable. Those preparing to downsize may find that following this helpful five-step plan can make the process a smooth and successful experience:

Think through your goals: This may seem like an obvious step, but it is one that people often overlook. As you think about downsizing, take the time to sit down and come up with a detailed list of your goals. Ask yourself the necessary questions that will help you to narrow and focus your search. These are questions like: What’s important to you in life — being close to family and friends? Living in a place you love? Having easy access to medical care? Access to an international airport? Spend some time thinking through your priorities and desires. How much of a mortgage will you be able to pay, particularly if you are retiring or anticipating increased health care costs as you age? Maybe you’re able to live mortgage free with the sale of your larger home.

How much square footage would you feel comfortable caring for? How will you prepare for the move? Thinking carefully about your future by working through important questions like these can help you move closer toward a concrete vision of your ideal downsizing situation and provide peace of mind and confidence during the process. 

• Look for a location you love: Location is an important aspect of any real estate transaction, but this can be especially true when downsizing. What are your reasons for downsizing? Thinking this through may help you to choose a location that is ideal for your needs. Are you downsizing because you are getting older and health issues are a concern? If so, choosing a location close to a city center where you can easily access medical care might be important. Are you downsizing because you’re tired of living in a large home in a suburban area and want easier access to amenities that a more urban environment may offer? If so, looking for more walkable neighborhoods closer to a larger metropolitan area might be important for you. Are you retiring and downsizing because you want to live in that gay-friendly city that you’ve always loved? Focus your home search there. 

• Be sure to budget: After you’ve thought through your goals and decided on a desirable location, you’ll want to spend time closely looking at your financial situation and coming up with a realistic budget to achieve your goals. Meeting with a financial professional to review your assets and debts, what you might make from the sale of your current home, and what the total costs of downsizing might be can be tremendously helpful, and can ensure that you make your move with financial confidence and security.

Don’t forget to declutter: Certainly, downsizing means you’ll have less space – and this means less room for extra stuff. Before your move, take advantage of the downsizing process as an opportunity to let go of items you no longer truly need or use and to make space for new things and experiences. It is important to get started on this process early. Often, when people are downsizing, they still overestimate the amount of room they will have for extra items. Don’t make this mistake. Taking the time to sit down and think about what will fit within your new space removes the stress of later having to dispose of those belongings after you move.

Find the right agent: The importance of this step in your downsizing plan should not be overlooked. Whether you are staying relatively close to home or moving across the country, you will need an agent who knows the community you’re interested in and can help direct you to neighborhoods and homes that will best fit your needs. This can particularly be true when you are an LGBTQ home buyer or seller and you want to ensure that you find not only a house that you love, but also a community where you can feel truly at home. Working with the right agent can reduce your stress, save time, and greatly increase your overall satisfaction with your real estate experience. Wondering how to find exactly the right agent for your needs? At GayRealEstate.com, that’s where we come in.

Whatever your real estate needs – whether you are looking to buy, sell, upgrade, or downsize, at www.GayRealEstate.com, we are here for you. We are passionate about connecting LGBTQ home buyers and sellers across the country with agents who are talented, experienced, and committed to helping their clients achieve their real estate dreams. In any real estate experience, having an agent who knows and loves their community and who values each client, and understands that client’s unique needs can be invaluable. We are dedicated to delivering that experience every time. You deserve nothing less. We look forward to helping you soon.

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

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Real Estate

How to prepare yourself in this seller’s market

Millennials are putting down the avocado toast and picking up mortgages

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Just because it’s a seller’s market, doesn’t mean it’s not a good time to buy.

For the first time, Millennials are cutting back on spending money on multiple streaming subscriptions, $10 drinks, and avocado toast. They are dipping their feet into purchasing their first home. The current market conditions can be tough for some buyers though, so being prepared is more important now than ever. 

The first step in the home buying process is finding the right real estate agent. Your agent should be trustworthy and someone who is knowledgeable about the area, sales contract, and local programs that may be able to save you money. Once you find the perfect agent, ask them to refer you to their preferred local lenders. When talking with lenders, not only should you focus on interest rates, but also ask about their in-house processing and underwriting. This may be able to give you a competitive advantage against other offers. 

Once you’ve decided on your lender, they will need several documents to help them determine your eligible purchase price. Now is the perfect time to get your documents in order, including 30 days of pay stubs, two years of tax returns and/or W2s and 1099s, and two consecutive bank statements. Providing these documents in a timely manner can help expedite the pre-approval process and prevent delays once you’re under contract. The lender will also look at your median credit score from the three major credit bureaus. Since your credit score has a direct effect on your interest rate, it’s important to pay close attention to your score. If your credit score needs a little help, talk to your Realtor and lender to see if they have recommendations on how to boost your score or programs that may be able to help.

After you’ve been pre-approved, it’s time to look at properties. With these current market conditions, properties typically don’t stay on the market for very long. Depending on the type of property, some may only be on the market for a few days. Doing your due diligence at the beginning of your home search can help save you time and focus on the properties that really fit your criteria. Now is the time to make that wish list, visit neighborhoods, research schools, and get a really good idea of what you’re looking for. In this market, it’s very important to see a property as soon as it hits the market. By fully understanding your search criteria in advance and making sure you’re available to see properties after work or on a lunch break, you will be better prepared to make an offer when “the one” hits the market. 

The most common question I get now is, “should I wait?” In most cases, the cost of waiting can cost you. With historically low interest rates and housing prices continuing to increase, now is still a great time to purchase real estate. Being prepared, patient and having an informed Realtor and lender on your side will definitely help in this market.

Teddy Rojanadit is a licensed Realtor in D.C., Virginia, and Maryland with Bediz Group at Keller Williams Capital Properties. Follow him at @teddydcrealtor on Instagram, TikTok and Facebook. He can be reached at [email protected] or 202-664-3736.

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Real Estate

Interest rates are down, even in this seller’s market

That shouldn’t discourage buyers

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Don't be scared off by this seller's market.

While it is true that in the last year, home sellers have been attracting multiple offers, as homes with more space, outdoor space, located close to parks, water features, and convenient transportation became highly desirable after most of the world stayed home in a global pandemic, home buyers still have reasons to look for a new home. 

The average 30-year fixed-rate mortgage fell four basis points from the week prior to 2.98%, according to Freddie Mac‘s PMMS. Within the past almost three months, mortgage rates have only peaked above 3% one time.

Even as recently as a few years ago, many buyers were finding rates closer to 3.75%, 4%, or 4.25% depending on their credit and income. Even a change by one percentage point can alter the monthly payment for a home by up to a few hundred bucks a month. The benefit to having a mortgage is that you can lock in your monthly payment, known as PITI (Principal, Interest, Taxes, and Insurance) and the only variables are the condo fees or HOA fees (if there are any) and other utilities.  

If buying a home has been on your radar lately, it might be worth talking to a reputable lender who has a good knowledge of the DMV market. Even if it’s not part of your plan for the year, speaking with a lender sooner rather than later can help you devise an action plan to increase your savings toward a down payment, paying off certain bills or debts to help increase your credit score, and just in general do a financing “clean up” to position yourself for purchasing when the right time comes.  

I have no crystal ball, but my suspicion is that as the world opens back up, and people have more options to travel, attend concerts, go to weddings, etc., the pent up demand for housing might relax a little, and buyers might be able to squeeze into the market with a little more ease. 

I will be offering a home buyer seminar on Tuesday, July 13 with a local lender on Zoom.  If you want more information please contact me and I can send you the link to access.

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

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Real Estate

When the A/C dies in the middle of a heat wave

Sweating it out while coping with unresponsive repair companies

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D.C. is sweltering in a heat wave, putting a strain on air conditioners.

When I sat down last Saturday to write this article, I had an entirely different topic in mind. I had planned to write something that connected houses and the Fourth of July, since buying my first house was my own Independence Day, when I no longer had to rely on others for a place to stay and could exercise my decorating skills unfettered by a landlord.

I was happily reminiscing when my air conditioning compressor let out its last breath and the fan slowed, then stopped, just like in the movie “Total Recall” (the original one, with Arnold).

Now, this isn’t the first time the unit has malfunctioned. For the past two summers, it’s been teasing me by allowing the thermostat to ignore my settings and letting the temperature in the house rise until several hours later, when the compressor will kick back on again.

Not this time.

It was still early enough in the afternoon that I tried to reach my home warranty company. I went on their website where, despite everywhere I looked, there was no direct way to make a claim. The instructions were to call them or request service through their cell phone app. 

I downloaded the app, only to find that I couldn’t log in because they had no record of me in the system. (I’ve been in their system for more than three years.) At that point, I gave up on technology and placed a call to the service number, where a nice lady took down my information and noted the problem. 

She asked if I would prefer an appointment on Saturday (the same day), the following Monday, or the Tuesday thereafter. I replied that I would be available any of those days. She then said I would receive an email with the appointment day and time.

Saturday wore on until it was evident that nobody was going to provide same-day service or send a scheduling email. As usual, their contractors didn’t work on Sundays, but I had expected that, so over the weekend, I turned on my ceiling fans, began cutting the sleeves out of old T-shirts to make tank tops, and froze every gel pack I could find.

On Monday morning, I received an email confirming an appointment for Tuesday from 2-12. Yes, you read that right, 2-12. 

I emailed back, “I think something is wrong here. Shouldn’t this be 12-2? Or perhaps you meant 2 am to 12 noon or 2 pm to midnight?” Shortly thereafter, I received a reschedule notice indicating the appointment time was now 12-4 p.m.

As with many D.C. homes, my air conditioning unit is installed in the attic, with the compressor located outdoors adjacent to the house. My attic access hatch is 18×20 inches and is accessible only through an 18-inch door in the hall closet. The closet shelves, when empty, resemble a staircase with steps of varying depths that lead to the hatch. 

On Tuesday, I prepared for the appointment by removing everything from the hall closet. I piled sheets, towels, pillows, toiletries, and a laundry basket onto my bed, then I spent the afternoon in the backyard with the dogs, spraying them from the hose and dousing myself like a wet T-shirt contest. It was 89 degrees in the house and only 82 degrees outside.

By 3 p.m., I began to suspect the repair person was not coming. Gingerly, I picked up the phone and dialed the warranty company. After a minute or two of listing to the sincere recording tell me that my call was very important to them, a woman came on the phone and asked how she could help me.

I told her my address and asked if she could find out where my house was on the roster of repairs for the day. She offered to call the dispatcher, promised to call me back if we got disconnected, and put me on hold. She never returned.

Twenty-two minutes later, I gave up and ended the call, only to find another reschedule notice in my email, this time for two days later, Thursday, July 1, between 8-10 a. m. I went back outside and sprayed myself (and the dogs) with cold water again, which I expect I’ll be doing for several more days. 

Does anyone have a Slip N Slide I can borrow?

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

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