The Benefits of Living with Mom (and Dad)

Mother’s Day is fast approaching, which means it’s time to celebrate all those things your mom did for you growing up (like not murdering you during your obnoxious teenage years).  While many of us will call or travel to visit mom, others may not have as far to go in order to shower their parent with love and affection.  A greater number of grown adults are choosing to cohabitate with their parents.  We’re not talking living on the couch or setting up shop in a dingy basement either.  Parental living arrangements are growing in popularity and can offer benefits to both parents and children, which you’ll learn all about if you keep reading below…

Increasing Cost of Care

In recent years, the cost of home and private retirement facility care has increased exponentially.  If you’re looking for causes, chalk this one up to good ole supply and demand.  As baby boomers and other generations continue to age, facilities to cater to more active lifestyles brought about by health consciousness and longer lifespans have become increasingly popular.  A greater amount of services, and the lack of corresponding growth in facilities and space has led to higher overall prices.  Many of these cost increases have priced seniors right out of the appropriate medical care or attention they may need, making cohabitating with their adult children an ideal arrangement.

It’s not just seniors who are incurring greater costs for daily assistance.  As more and more U.S. homes are becoming two working parent households, the demand for child care has also increased.  In some cities finding an opening in an accredited facility for young children can be hard enough, much less coming up with the monthly payment.  Having one or more grandparents living at home not only exposes children to valuable intergenerational stories and learning, it also reduces the need for babysitters, nannies and outside the home daycare.

Higher Down Payments Equal Lower Overall Debt

It’s not news to regular Homegather readers that the cost of buying a home has increased exponentially in recent years.  Even accounting for the real estate market earlier this decade, home values have doubled and, in some areas tripled or more, in comparison to median salaries and wage increases over comparable years.  Having two families contributing to the purchase price of a home can make otherwise unattainable home ownership a reality with resulting lower monthly payments and elimination of PMI.  Interest rates continue to hover around all-time lows, but that won’t always be the case.  Experts see the financial benefits of bigger down payments paying off for years to come.

Not as New a Trend as You Might Think

While eliminating the stigma of living with your parents as an adult may seem like the hot new trend in cohabitating, it turns out the U.S. is behind the times.  Across the globe, many cultures not only accept multi-generational households, they would think of the lack of a parent or grandparent presence out of the ordinary, or even downright taboo.

From Asia to Africa to Russia, across continents, religions, and cultures, many societies have embraced the concept of elders continuing to live with their children.  Valuable culture and traditions, stories, recipes and more are often passed down through extended interaction with a family’s matriarch or patriarch.  These traditions would become lost, or have a smaller impact if grandma and grandpa were shipped off to a care facility or maintained their separate residence.

From honoring one’s elders to utilizing knowledge, having older family members live with their families is both an asset and sign of respect.  Whether financial, emotional or cultural support, this is one trending “fad” we can definitely get on board with.

For Sale by Owner: Brilliant Idea or Recipe for Disaster?

If you’ve ever sold a house before you know that the myriad of fees, points and commissions charged by the various people involved in your transaction can rack up fast.  In some cases, these line items can eat significantly into the final amount you’ll end up pocketing when the sale is said and done.

If you’ve been eyeing the current hot home selling market this season and thinking about ways to trim the administrative fat in your home sale, you aren’t the only one.  “For sale by owner” signs have been popping up on properties around the country.  But does going into a home sale unrepresented by an agent really save you in the end?  We’ll break down the monetary and other costs of trying to go it on your own and explain why, in this case, a penny saved doesn’t always equal a penny earned.

Selling Your House is Complicated

While putting out a for-sale sign might seem like an easy task, the truth is that getting a buyer is just the tip of the iceberg.  Selling property has always been a legislative and administrative hassle.  Did you make the proper disclosures regarding lead?  What about that termite damage you had remediated a few years back.  Do you remember to put all the clauses into writing?  Online forms can only get you so far and missing an important addendum, disclosure or another requirement can mean the difference between a closed sale and a lawsuit.

Are You an Expert at Negotiating?

Speaking of those termites, a real estate agent is responsible for more than just baking cookies at your open house.  A licensed, experienced agent is knowledgeable in the market for your particular area and knows what concessions are commonly granted, and which aren’t.  Should you credit your potential buyer for a new roof?  What are other sellers doing when it comes to requests for closing fees?  Your real estate agent is your primary source for negotiating and advising on responses to demands from the buyer.  The wrong move here could cost you thousands of dollars in unneeded fees or credits, or, potentially your sale.

The Cold Hard Numbers

While we’re on the subject of dollars, it may seem reasonable that eliminating an agent reduces your out of pocket expenses but does it really save you money in the long run?  As it turns out, having an agent can actually net you more at the end of the day.  This is because real estate agents are specialized professionals whose sole job it is to market, advertise and promote your property listing.  While they will pocket on average 3.5% of the listing price, this figure is easily made up for by the higher final sales price in most cases.  On average, realtor marketed homes sold for at least 8% more nationwide in 2015.

In addition to higher overall offers, homes represented by real estate agent’s sell faster than for sale by owner homes.  A whole 30 days faster to be exact.  It again comes down to expertise, and also the tools agents have at hand.  It can be difficult, and in some cases impossible, for sellers to gain access to the multiple home listing services that buyers and buyer agents use to help search for homes.  Since the majority of home purchases today are initiated through internet searches, it makes sense that not being included in the online sources limits your potential pool of buyers.  This can end up costing you.

To Wrap Things Up

While we like a good self-motivated homeowner when it comes to basic repairs, maintenance or doing beginning research when looking to buy or sell, the truth is that there’s a reason for the various roles involved in a real estate transaction.  You may save a few thousand dollars in fees, but long term value in cold hard cash, plus the value of your time and potential liability in case things go wrong, can all add up in the end.  While you may be tempted to jump on the For Sale By Owner bandwagon, try sticking with an agent to see real savings and even gains.

What to Expect During an Open House

It’s home buying season.  Markets are on the move.  Properties are coming and going and buyers are on the hunt for the perfect place to call home.  Whether you’re a buyer or seller, one of the most exciting aspects of the real estate dance is always looking for just the right partner.  One of the key courting rituals in the world of homebuyer and selling is the open house.  Buyers open up their homes for an afternoon.  Agents put some cookies in the oven.  Prospective buyers come through in droves.  Before you know it, a connection is made and poof, the house becomes the home of the new individual or family.

But before you ask your agent to rope off a time or schedule a day of caravanning between listings, there are few particulars you may need to know about the open house process.  So sit back and bust out that pen and paper.  Homegather is about to guide you through Open House.

Member Access Only – Is Gated Community, HOA or Other Exclusive Living Right for You?

Admit it.  Ever since you saw your first episode of Dallas, Desperate Housewives or other TV drama featuring picture perfect houses with picture perfect yards, you’ve wondered what it was like to live in a planned, gated or otherwise restricted community.  We can’t blame you.  The perks from controlled access or uniform, clean, landscaped yards can be appealing.  From security to extra amenities to picturesque settings for family gatherings, planned and gated communities have much to offer homeowners.  But, as with most attractive packages, the reality isn’t always as perfect as you’d think.

Nice Yard…Now About That Gnome Statue

One of the most obvious benefits of planned community living, at least to the casual observer, is the uniform attractive appearance of the yards in the neighborhood.  Home Owners Associations, or HOA’s, will generally call for a regular schedule of lawn maintenance or may even provide the service themselves depending on your community.  This picturesque exterior planning can be a dream to enjoy on quiet evenings outdoors and creates instant curb appeal for resale value down the road.

In exchange for not worrying about your quirky neighbor putting a car up on cinderblocks in their front yard, however, there are a few drawbacks to that perfectly manicured front, or even back, yard.  First, many HOA’s will place limitations on types of plants you may grow and require strict maintenance so that nothing appears unruly or untidy.  Go a few weeks without pruning those peonies and you may have a letter waiting in your mailbox or a visit from the neighborhood proctor on your hands.  And if you’re a fan of those quirky statues, flags or other decorations that tend to be found in catalogs strategically placed in the back pouch of airline seats, you may be out of luck.  Garden gnomes, flags or other “fun” decorations tend to be universally frowned upon in planned communities.

Fifty Shades of Beige

Speaking of adding personal touches to the exterior of your home, if you’ve been thinking about painting your front door bright red or adding a splash of neon green to your shutters, if you live in a planned community you may want to think again.  Your HOA, community plan or other neighborhood guidelines will most likely limit the color and material options for the exterior of your home.  And they will most likely be neutral, unexciting shades to choose from.  On the plus side, these limitations can create a uniform appearance to the neighborhood and can help avoid glaring eyesores, like that time our neighbor in elementary school decided bright orange was a happening color for siding.

Welcome to the Neighborhood…Now Where’s Your Pocketbook

If you’re on board so far with obliging HOA guidelines for items like yard maintenance and front door colors, know that with these perks often comes a price.  In exchange for providing governance, your community or neighborhood group or Home Owner’s Association will typically charge monthly or yearly dues in order to defray expenses.

The bigger the perks, the bigger the fees.  Gated communities often have dedicated security officers who need a monthly paycheck.  Common amenities such as a clubhouse, tennis court or community pool also require staff and maintenance.  The bigger the perk and the smaller the community the higher the fees will be.  Some small HOA’s may require a few hundred dollars a year.  Others may rack up bills of thousands a month.

Whether you choose a traditional neighborhood or a planned community, before you buy be sure to inquire about any restrictions your home may face.  HOA or other fees should be disclosed before you enter into any purchase contract.  Limitations on building, painting or other customization are also typically required to be included up front.  As with any home, these communities will have their pros and cons and it’s up to homebuyers to decide what meets the needs of their individual families.