Handling the home repair proposal

When selling a home, one of the most important steps in the process is negotiating the home repair proposal after the inspection.

Last month, we looked at the home inspection and home repair from the buyers’ perspective, so this month we want to take a look at it from the sellers’ angle. Real estate agents aren’t home inspectors, and we often don’t know everything that might need fixing in a property. If you as the owner of the property know of and share a particular issue with the agent, then of course it is our job to make sure that is disclosed as part of the listing. In fact, one of the first things I do in preparing a property to list is to provide a disclosure form as part of a set of required documents giving us permission to sale their property. This property disclosure form lists out all the items in your home or cabin that you’re aware of about the property – age of the roof, any updates or upgrades to the home, any conditions that the law requires for you to share with buyers about, etc. If you haven’t lived in the home for several years, you may choose to fill out an exemption form instead. This is often the case with vacation and second homes that are on a rental program. You’re just not going to know everything about the condition of the property if you aren’t actively living in the home. Even when you do live there full-time, you may not be aware of potential problems that your buyers could end up being responsible for if they closed on the property without discovering it beforehand. So it’s in their best interest as the buyers to have a home inspection done.

The home inspector will:

  • test the plumbing;
  • test the electric outlets;
  • inspect the crawlspace for possible cracks or mold;
  • inspect the fireplace;
  • inspect the home exterior for signs of wood destroying insect damage; and
  • look for signs of water damage or problems along the gutters and on the roof that may not be noticeable to the untrained eye.

The home repair proposal

Once the inspection is completed, the buyer will identify the items that matter the most to them and coordinate with their agent – if they have one – to put them into a home repair proposal for you to consider. As a seller, it’s important not to panic when you see the repair request items. A home inspector is hired to find every potential issue in the home so that the buyer can make the most informed decision possible. Most good home inspectors will seek out problems and potential challenges so that the buyers know as much possible about what’s going on with the house before they buy it. It’s important for you to work with your agent to help you determine the best response based on your situation. If you have the resources to make the requested home repairs, that’s often the best choice. Or if you can’t do them all, pick the ones that are the most important and offer to do those. Another option is that you could negotiate a lower sales price to allow the buyers to fix the home repair items on the home repair list themselves. Your real estate agent should be able to negotiate the home repairs on your behalf and, when needed, help you find people who can do the work to fix those items so you can get accurate estimates in case the owner chooses to reduce the price instead.

Keep in mind that simply refusing to address the requested home repair proposal items could mean the buyers will walk away, and if the items are significant, you will have the same challenge with the next buyer who comes along if you don’t work out a way to fix the items. Of course, the buyers have the choice to walk away after a home inspection is completed if they don’t like the report, so it’s sometimes good to ask your agent to follow up to see if you can find out what made them decide not to buy your home. Perhaps it’s something you can fix before the next offer comes in so it doesn’t end up being a challenge to overcome with a new buyer on the next home repair list.

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Working through the home inspection

When buying a home, one of the most important decisions you will make is whether to hire an inspector to conduct a home inspection. Real estate agents aren’t home inspectors, and we aren’t able to identify everything that may need  to be home inspectionaddressed in a property. If the owners know of and share a particular issue with the agent, then of course it is our job to make sure that is disclosed as part of the listing. In fact, one of the first things I do in preparing a property to list is to have the seller fill out a set of required documents that give us permission to sale their property. These forms include a document that lists out all of the items in a home that could have issues needing to be addressed.

If the owner hasn’t lived in the home for several years, they may choose to fill out an exemption form instead. This is often the case with vacation and second homes that are on a rental program. The owner just isn’t going to know everything about the condition of the property if they aren’t actively living in the home. Even when the owners do live there full-time, they may not be aware of potential problems that you as a buyer could end up being responsible for if you closed on the property without discovering it beforehand. So it’s in your best interest as the buyer to have a home inspection done.

What does a home inspection generally consist of?

The home inspector will:

  • test the plumbing;
  • test the electric outlets;
  • inspect the crawlspace for possible cracks or mold;
  • inspect the fireplace;
  • inspect the home exterior for signs of wood destroying insect damage; and
  • look for signs of water damage or problems along the gutters and on the roof that may not be noticeable to the untrained eye.

Once the home inspection is completed, you will receive a copy of the report that details all of the items they checked and the condition each was found to be in. If there are any serious problems, the home inspector will go through those with you at that time. Feel free to talk with your inspector and definitely ask additional questions when there are items in the home inspection that you don’t completely understand.

As a buyer, it’s important not to panic when you see the home inspection report. Any inspector that we recommend is going to be thorough! You are going to know more about the property than you may want to! They will tell you everything that is a problem now, everything that may be a problem in the near future, and the many things to look for in the distant future. This will place you in the best position of comfort and power, although it also will be disconcerting. It is kind of like when you go to the doctor and see an x-ray of your spine or an ultrasound of your organs. It’s a little disturbing! Just remember that a home inspector is hired to find every potential issue in the home so that you as a buyer can make the most informed decision possible. The good news is that 99% of issues can be addressed. The main questions are how best to address those issues, what might it cost to address them, and who is going to complete the remediation?

Once you have received the home inspection, this is the point where you would need to work with your real estate agent to send a request for items identified in the home inspection to be repaired or replaced, or for the owner to agree to reduce the sales price of the property to account for the repairs you will need to make. Your real estate agent should be able to negotiate the repairs on your behalf and, when needed, help you find people who can do the work to fix those items so you can get accurate estimates in case the owner chooses to reduce the price instead.

Its all part of buying something amazing! While often one of the more stressful parts of buying property, it can also be an exciting part – learning about your property and how to care for it in order to keep its value strong in the years to come.

Let the adventure begin! If you have more questions about the home inspection process, I and my staff are always here to help!

Solving the appraisal challenge in an increasing market

When buying a home or vacation cabin, one of the most crucial steps in the process if you’re working with a lender is the appraisal. Appraising the value of a property can be one of the most challenging, and probably the most stressful, aspects of the process for buyers. This can be especially true in a market where appraisal values don’t reflect where the market is at in terms of purchase value. As I discussed in last month’s article, this is mostly because lender appraisers are looking at the value of the property in a different way than everyone else, and with a different purpose. The purpose of a lender appraisal is to determine how much the lender can sell the property for in the event of a foreclosure. So even though the buyer is paying for the appraisal, the appraiser making the determination is actually working for the lender.

In our market, as we continue to work with a low number of properties for sale, the sales price of cabins has continued to rapidly increase over the last 12 months. We’ve seen a slower pace on our local residential market, but home values are also increasing. If you as a buyer have an appraisal that comes in under the offer price, that doesn’t mean you won’t be able to buy the home. You and your agent have a few different options to help you work out a solution with the seller.

Ways to address the appraisal

The first thing I tell my buyers when the appraisal comes in lower than the purchase price is, “Don’t panic.” We look over the appraisal report and re-evaluate our own comparable group of sold listings to see if we’ve missed something about the property. An appraiser can go back as far as 12 months, and is required to first use anything that’s sold within the same subdivision or resort community. The appraiser is limited on what he or she can do to review those sold properties. They rely heavily on MLS and tax records, so when those documents aren’t completely up to date, it can skew the data in a way that might hurt your appraisal.

Once we are certain our offer was appropriate for the market, if we’re comfortable with it we will ask the seller to agree to reduce the price to match the appraisal value. Remember, the lender won’t borrow on more than what the home is determined by the appraiser to be worth, so if the seller won’t lower the price then the next choice will be to see if we can split the difference with the seller or simply agree to pay more out of pocket. So for example, if the purchase price is $200,000 but the appraiser determines the value of the property to be $190,000, then you would have to either get the seller to agree to reduce the price by up to $10,000 or work out how to pay that amount out of your own pocket.

As a last resort, we can try to work with the lender to resolve it, but the truth is it is very hard to get an appraisal value overturned once it has been determined. We absolutely cannot pressure appraisers to price the appraisal value of the property at the amount a buyer offers a seller.

Next month, I’ll share some ways I help sellers to price their property correctly so that the appraisal value meets the expectations correctly. In the meantime, if you have questions about appraisals or anything else regarding the local real estate market, I and my staff are always available!

Understanding the appraisal

In this article, I’d like to share with you about one of the most important steps in a home sale where a lender is involed – the appraisal.

If you’ve been following my articles over this past year, then you already know our region – the Great Smoky Mountains, including Pigeon Forge, Gatlinburg, Sevierville, and the surrounding communities – are in a season of very low inventory for property sales. This is especially true of our rental and vacation cabin market. As a result, the values of these properties have increased and the market for vacation and rental cabins has climbed steadily over the last couple of years at a rate that has outpaced lender appraisal values.

Appraising the value of a property can be one of the most challenging, and probably the most stressful, aspect of the process for buyers in a market where appraisal values don’t reflect where the market is at in terms of purchase value. This is mostly because lender appraisers are looking at the value of the property in a different way than everyone else, and with a different purpose. The purpose of a lender appraisal is to determine how much the lender can sell the property for in the event of a foreclosure. So even though the buyer is paying for the appraisal, the appraiser making the determination is actually working for the lender.

Appraisal is an art, not a science

As you know, when a foreclosure is put up for sale by a lender, it’s not priced at the market value. It’s priced below the market value because the financial institution is just trying to recoup as much as they can get for the property. So appraisers have to work from that angle in determining the appraisal value for the lender, and they have to follow specific restrictions. They have to find comparable sold listings within the last 3 to 6 months. If the property is in a subdivision or resort, they must use sold properties from that particular location. Obviously, appraisers can’t go into homes that were sold and take a look around. So the most efficient method for them is to look at closed listings in the association MLS, tax records, and any photos that are included with the closed listing report. It’s a difficult job, especially when you begin to understand some of the problems with doing it this way.

First of all, the reports don’t always accurately reflect the condition of the property. Rarely do tax records identify updates to the interior of the property. Sometimes the square footage is recorded incorrectly. The cabin could be smaller or larger inside than the tax record indicates. Regarding MLS records, the photos may be out of date. That pristine looking cabin exterior in the front photo could have been taken a week after it was built… 10 years ago. Today it might be full of bee holes and in serious need of a new staining. So of course it sold two months ago for $15,000 less than the one you’ve made an offer on where the one you want to buy today has been well taken care of and doesn’t need any major updating.

Appraisers also are required to look at square footage differently than the average buyer or seller. A lot of times, people look at the total square footage to determine how big the cabin is. Even when these numbers are correct in the written record, what the lender’s appraiser is looking for is how much is “above grade” and how much is “below grade.” So maybe you picked out a cabin that has a total of 2,000 square feet, but the appraiser who looks at it notices the cabin square footage is perfectly split between two levels. So, the 1,000 square feet above the mountain’s edge in that hypothetical cabin is considered above grade and worth more than the downstairs – even when that lower level has a window facing the perfect mountain view. Any level of the cabin that is 1 foot below ground is considered basement.

So that’s how the appraiser works through the process. In my next article, I’ll share some ways you can handle an appraisal that might come in below the offer price.

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Setting the right sales price

When home and cabin owners make the decision to sell, the first thing they want to know, of course, is what the correct sales price for their property should be. Working every day with the market, I watch what’s happening with sales prices and I keep up with the trends of what’s happening. Right now, we are in a sellers’ market due to the low number of properties for sale, so the demand for homes and cabins is continually driving up the sales price.

Before most clients contact me, however, they’ve already turned to the internet for their research into setting the correct sales price. Real estate marketing websites use computer generated figures based on a total sum of properties without any input from a human. So they don’t take into account all the little things that appraisers are going to care about when they come out to see if the lender should finance the purchase. As a result, the internet estimates are generally incorrect. Sometimes, they are too high. Other times they are too low. For cabins, this number is derived by including all the very expensive log cabin construction in our county – lumping every kind of construction together. To the computer there is only one category and it is called “residential,” whether it is overnight rental cabins or true residential like your house. Clients who list with me will ask if the estimated sales price will hurt the sale of the home if it doesn’t match what we have priced it at based on market comparisons that are more “apples to apples.”

Well, here’s the good news, sellers: the online sales price estimate isn’t going to hurt us.

As a matter of fact, we’re going to use it as a marketing tool! We have estimates like this all the time and we make them work in our favor – even though you and I know that the estimate is not accurate (and actually buyers and buyers agents do as well).

In the Great Smoky Mountains Association of Realtors Multiple Listing Service, there is no division for the type of properties we have in Sevier County. If it has bedrooms, it’s a residence – even if it is a 12-bedroom log lodge bringing in an income of $300,000 a year.

The sold numbers that throw this off are our new construction log home cabins which run $170-$280 a square foot. (True residential properties are still running right at $100 a square foot to build.) When the computer picks up these log cabin numbers it just creates estimates that are well, not accurate. It doesn’t fit the programming pattern, so it messes it up. Some computer programs also don’t seem to be able to keep up with the pace of the market, which can be a problem for someone who is selling their house based on today’s sales prices and not on a price from 90 to 120 days ago.

Until we’re all replaced by computers, sellers and buyers still need people who can look at all of the data and not just one piece of it to help determine the correct sales price for a listing on the market.

An update on our changing market

Due to our low number of properties on the market, we have seen prices continually climb on what’s available over the last nine months.

Many of you who follow our monthly newsletter and keep up with the articles we write each month about buying and selling properties in the Great Smoky Mountains region either currently own, or have owned properties, here in the past. Many of you also are in the market for something else to own, either in addition to what you have now or as an “upgrade” to your current vacation/rental cabin. And you’ve probably been keeping up with our articles about how the market has changed. It’s a sellers’ market – not just here, but in a lot of places around the country. The number of homes for sale is down from where it was a year or two ago. So when something new comes on the market, it really doesn’t stick around that long.

It’s true. Many listings in our market have offers within a matter of days if they are priced correctly (especially when they are priced a little under) current market values. My agents and I have had listings that were “under contract” within as few as three days. We frequently tell clients at showings, “This won’t be on the market next week.” It’s just where our market is right now.

So what can you do? Well, the first thing to keep in mind is that the deals of changing marketlast year are gone. If you do stumble upon something that’s brand new to the market and it is priced low, the offers that come in are going to be above asking price. The winning buyer won’t be placing any sort of contingencies on the offer, and you can forget about negotiating back and forth through a series of offers and counter offers. While you’re trying to get a discount on the price, someone else is coming in with a full price – or above asking price – offer that’s going to win. It’s a tough place for a lot of buyers to be, especially ones who have bought in our market in the last few years after the downturn, but it’s important to know that going into any offer you want to submit. Those days are over, at least for the time being.

Secondly, as prices are going up on properties, rental rates are rising along with it at many of the rental companies in our area. Large cabins are not as readily available for purchase as they once were, and so smaller cabins have quickly become the focus. We’ve also seen a significant reduction in sales of cabins in our more popular resorts, such as Sherwood Forest and Legacy Mountain. Where once there were about a dozen or so cabins for sale in each those areas at any given time a year or two ago, today there is half or even less than that.  But the good news is that there are still strong investment properties to purchase that will cash flow positive every month.  We are also building again so new construction may be a really good option for you.  This market is not for the timid.

This year, about a third of the properties I’ve listed have sold at or above asking price. We’ve had some where we ended up with multiple offers, even in places that haven’t traditionally been high demand areas in the past.

When national investors have analyzed the entire United States, Sevier County comes up in the top ten places to invest for overnight rentals. It’s also one of the most beautiful and inexpensive places to retire.  So be a good student of what is available and don’t be shy about an offer on a good property. If you can accept that, you will have a solid investment for years to come, whether it is your personal residence or an overnight cabin or chalet.

In the meantime, if you’d like to know more about the current market and where we are probably headed – whether you are buying or selling – my staff and I are always here to answer questions.

Buying property in a sellers’ market

We – like many communities around the country – are in a sellers’ market.
If you’ve discovered that finding the perfect vacation cabin or second home in the Smokies hasn’t been the dream you imagined this year, don’t fret – you aren’t alone.

We have had a shortage of properties for sale this year. Even now, there are only about 1,000 active market listings for sale in our local Great Smoky Mountains MLS association. At the same time, we have seen our number of buyers increase, but with less properties to consider, it’s definitely driven the demand, and the sales prices, up.

Winning the bid for the cabin in a seller's market isn't easy.However, if you’ve found a property your heart is set on, there’s hope. There are things you can do and ways you can approach the seller with an offer that will make them choose yours over everyone else’s. Here are few ways you can make the successful bid.

Be prepared to go above the asking price. This is just the reality in a sellers’ market. When supply isn’t keeping up with demand, the market value – what someone is willing to pay – inevitably goes up. We’ve seen a number of properties on the market sell for an amount above asking price, particularly when the property is in what agents will call a “multiple offer” situation. This is where the seller has received more than one offer, and instructed the agent to give all of the people making offers the chance to submit the very best offer they can within a set amount of time (usually a day or two). So if you had offered a little less than asking but someone else offered asking price or even just a couple of thousand dollars more, it’s more likely they will take that bid over yours.

Do anything you can to make your offer the most appealing. Going above asking price, particularly in a multiple offer situation, isn’t a guarantee you will win the bid. What matters the most is which offer looks to have the strongest chance of making it to closing. Can you buy the property with cash? If you can, that is usually the offer that will win. If not, then you will need to consider some other ways to make the offer more appealing. Get prequalified with a lender who will provide a letter. These days, lenders can get prequalification within five minutes, and most have an app where you can do it from the ease of your cell phone. Have a larger down payment or offer a higher escrow. Agree to take the property “as-is.” “As-is” is a real thing that happens frequently these days, but it doesn’t mean you’re stuck with the property if there’s something seriously wrong. You can still order a home inspection and go through the normal procedures, and if your inspector finds a problem that the two parties can’t resolve a way to fix, you can still will walk away from the purchase. Most sellers and their agents understand that if it is a serious issue with the property, it will have to be addressed if you decide not to buy the property after all. So that tends to make the seller a little more open to negotiating the repairs for those types of issues. And lastly…

Don’t wait to make the offer if it’s the one you really want. This is the hardest part of the home search for many buyers. Buying a home or cabin is a big decision and most people, understandably, want to take some time to think on the decision before they make an offer. Impulsive buying really goes against human nature, and rightly so. Unfortunately though, time is of the essence these days. While you’re sleeping on it, someone else is making an offer that could be accepted by the seller. It’s not uncommon for a buyer to miss out on the cabin or home they really want because they didn’t want to make an offer immediately.

The bottom line is, it’s a sellers’ market and will continue to be so for the foreseeable future.

Going into the home search with that understanding in mind will make the process of finding a home in a sellers’ market much less stressful for you and give you the edge in making the best, most attractive offer you can in order to win the bid for the home or cabin you really want.

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Picking the best color of paint for your home is critical

Last month, I shared some important tips about what to look for when buying an investment and what to be thinking about during the search process. Once you’ve found the right property that meets your goals and meets those criteria, the next thing to be thinking about is what improvements you can make to it that will increase its overall value without costing you too much money. First and foremost, you want the investment property to be the best color it possibly can be.

Finding the best color

Sometimes it’s just a matter of painting, but don’t kid yourself – if you aren’t using the very best color choice, painting can ruin you as easily as it can profit you. Take that seriously. Don’t just let someone pick a color. Use a palette to compare colors before you start so that you pick the best color of paint for your home. And if you make the mistake of picking the wrong color, don’t be so prideful that you keep on painting with that bucket of paint because “it’s paid for.” I’ve done this.

True story! It was years ago when I was much younger and inexperienced, but an art major! As a matter of fact, I was fresh out of college and had started teaching art at a local middle school. So that made me a professional, right? Wrong! My sister asked me to choose the color for their new West Knoxville house. I was so excited! Armed with many paint chips, I chose the most darling shade of blue. Now, in my defense I need to tell you she loved blue and requested blue. However, there is blue, and there is blue! In a few short weeks after the paint dried on this marvelous shade of blue for the exterior of her house, the whole neighborhood was devalued due to the over the top Easter egg blue color of my sister’s house. Oh my!  I learned a terrible lesson, and so did my sister! She has forgiven me, but the roughly 2-inch by 3-inch paint chip does crazy things when you blow it up to about 100 feet by 20 feet. At least, that was my excuse! By the way, her three young sons loved the blue house (which in hindsight should have been a hint that it was inappropriate).best colors are found in nature

So here is the trick to figuring out the best color for your new investment.

Get paint samples and get the color you want. Then get all the shades around the color you want – dark ones, light ones, muted ones. I repeat, muted ones – with grey and brown mixed in! Then, take them to houses and commercial buildings you like and match them. You are going to be shocked at how muted the shades you like are once they are on an exterior wall with the sunlight beaming down.

You can also use the paint brochures and the photos they provide to indicate the color used at the paint store. That can help you determine the best color to use. And if you aren’t sure, start by buying a small sample and try a small area. (You’ll thank me!)

Another excellent idea is to talk to your agent before you remodel. A good agent will know the best colors, materials, design, and décor to attract buyers. If you remodel it correctly, it could save you $20,000.

Also remember, something bought as an investment can be rented immediately (generally speaking). A property that was someone else’s mistake because it wasn’t reaching its potential for gross rental income numbers but is still showing rental history means it can continue to make at least that amount in the meantime.

Lastly, land is always king. If you have a choice between buying an investment property with land or one that is in a Planned Unit Development subdivision where the only land you actually have all to yourself is the part the structure sets on, go with land.

Buying smart as a real estate investor

The most common type of phone call we receive from buyers looking for real estate in our market usually starts out something like, “I’ve never really owned vacation rentals before but I want to buy one with great rental history!”

real estateI always tell them, “Awesome, you want to become an investor! I can definitely help you with that!”

The conversation then turns to identifying what exactly they are looking for in an investment property and what their budget is for buying real estate. Once we have those parameters figured out, the next point to focus on is understanding what their long term plans are with buying real estate. Always be looking for real estate property with the expectation that you will sell at some point.  This is the first, most important step in the process of buying real estate. We have found that it is fairly common for investment cabin owners to relist their cabins within five or so years.  Either their investment strategies evolve leading them to buy other cabins or to invest in other ideas, or life happens and their focus on where they want to spend their investment dollars changes. So, always buy with the sale in mind. What does that mean? Well, it means there are several criteria you want to do your best to meet as you search for the best investment.

  1. It’s got to be in a great location. Location is everything, as I’m sure you know. You’ve got to buy something in a great location. You can change almost anything about a home but you can’t change the location. You can’t move a house if it’s in a bad location. So how do we define “great location?” Well, in the Smokies, a great location is generally something that has a beautiful view of the mountains, is close to attractions, and is relatively peaceful. If your investment property doesn’t meet at least some of those criteria, it had better offer something incredibly unique that renters will find appealing.
  2. Buy the lowest priced property of the best quality on the block. You definitely don’t want to own the most expensive home or cabin in the resort, and the reason is this: when you get ready to sell, you will have a hard time getting that piece of real estate to appraise for what you want from it. Appraisers look at similar properties in the same area of the property for sale as much as possible, and often times a property that is priced higher than the ones around it sold for has trouble getting approval for the price you are being offered. Without an appraiser’s stamp, a lender won’t be able to authorize the deal unless the buyer is willing to pay the difference up front. Most buyers using a lender usually can’t (or won’t). By going after something that is less expensive, you have enough room to maneuver as it appreciates in value.
  3. Buy as high quality of property as you can afford. People are always looking for the best deal, and I personally love helping them finding someone else’s mistake that they can turn into a win. But even with that goal it’s important to remember that the cheaper something is, the more you will have to spend to turn it into a gold mine. You want to buy real estate property with good bones that will hold up better without much maintenance. On that subject, don’t buy something with an outdated, obsolete floor plan. You want to buy something that can be changed to keep up with the interior design trends. So buy something with potential to be great without having to completely rebuild from scratch.

Remember, the goal in real estate investing is to make money with the property, both on the front end over the years as you rent it and on the back end when you sell it for a profit. If you’re not striving to reach those two goals, it might be someone else buying your mistake instead!

Next month, I’ll take you through some of the strategies I encourage my buyers to use once they’ve found the “diamond in the rough” so that remodeling the home increases their profits rather than cutting into it.

In the meantime, if you have any questions about the local real estate market, my team and I are always here to help and answer questions.

Whether you’re buying or selling, the time to get started is now

If you’ve been thinking about buying or selling your home or cabin, now is the time  – whichever side of the process you are on.

buying or sellingFor sellers, it’s the right time to sell because you can ask for a higher price these days. The number of properties – including homes and vacation/rental cabins – is low, creating a market where those properties that are priced competitively will sell for very close to asking price and very quickly, too. It has also meant an increase in sales prices as people are willing to offer more to get the home they want and face a greater number of buyers competing for less inventory. We’ve seen properties with offers on them within as little as three days of being listed, and usually at or above the asking price of the cabin or home.

For buyers, it’s the right time to buy because interest rates are still relatively low and down payment terms are reasonable. If you are considering a cabin as a second home property, you should also talk with your accountant because it’s been reported that second homes are still eligible for some tax deductions that were removed from other types of home ownership in the tax bill the federal government adopted at the end of 2017. National outlets such as realtor.com are telling us to expect the rates to reach 5 percent before the end of the year, so the longer you wait, the more it may cost you in the long run. Of course, buyers who are working with lenders are getting some tough competition from buyers who are willing to bring cash to the table, so that’s something to keep in mind when making an offer on a home or cabin.

If you’re a buyer, another thing to consider is that homes are continuing to increase in value. So, if you wait another year, you’re going to pay more for the same square feet or the same house than you would right now. However, you don’t want to panic or settle for something that you don’t love, but waiting to start the search isn’t a good idea.

If you’re preparing for the process of buying or selling and want to learn more about the local market, need help determining the value of your property in order to sell it for the most appropriate price, or need help finding the best second home/investment cabin to buy, we are here to answer any questions you may have.