Purchasing a "Multi-Generational" Home

The Headlines:

Love Grandma?  Have a Favorite Aunt?

Maybe you should buy a home together?

It's called a Multi-generational home.

It's been a while since I've written.  Not sure if you've noticed but Real Estate has gone a little bonkers.  Because of that, as well as the other things life throws at a woman my age, in my "stage"... writing has taken a back seat.  Yes, I've been busier than ever in 2021 writing contracts, showing houses, negotiating deals... making dreams start at home.

It's pretty clear - People want to move.  This was bound to happen after COVID.  I wrote about it the minute we were all "locked in" last year.  We all hung out in our houses for a really long time.  Many of us... got sick of them.  Add that to record low inventories all over the country and you get what we're seeing now in the housing market.  Real Estate is cray.

I've had countless conversations with people who want to cash in on the market.  The problem?  They don't know where to go. There seem to be only 2 choices: either A) move to a new location/state where prices have remained lower than where they currently live or B) stay in your home.

  

But, there is one more option some families could potentially use...

Multi-Generational housing, by the way, has been going on forever in other countries.  But us Americans - like our space.  You  remember your Grandma?  She didn't want anything to do with moving in to your parents home.  But other cultures do it all the time and we're just now catching on.    

How does it work?  Of course there are many ways to go about this but essentially... Grandma has a home, she sells it, takes the money she gets from that sale and uses it to help a family member (son/daughter/niece) purchase the new, larger home that she can then live in with the core family.  Basically, you're pooling together more money to buy the home that will work for everyone.  Of course, specifically how this works out (dollars wise) - consult your family attorney, money manager, tax professional and/or mortgage broker.

According to a study done by Generation United,  multi-generational houses have increased 271% in the last 10 years - with more than 1 in 4 Americans living in this type of situation.  The reasons, according to GU, are many.  Not just purchasing a "new house".  In fact, that's just the off-set benefit.  Eldercare and child care are the leading reasons.  People need help with raising their family so they move in together.  Both at 34%.  Followed by job loss or unemployment, healthcare costs,  cultural expectations and education/retraining.  See the full article HERE

Living together with your extended family does indeed save money and can help that home upgrade... but there are strings.  

Here are 5 things to think about:

1. Grandma will need to be taken care of at a certain point.  

She may help now but that won't last forever.  My Mom came to live with me 2 years ago after my Father passed away and it was determined she had Alzheimers.  We did not move... (maybe should have)  We were going to build a casita on our property but then we decided maybe we would just buy a larger house.  Soon after, COVID hit.  We never left. 

I can handle her now - but for how long?  

2.  Bills, including food, electricity, etc... will be higher.

Who pays for that?  How is it split?  Remember college?  When you got mad at your roomie for eating your cookies?  Those days are gone.  Sharing is in full swing at multi-generational houses.  But define who pays for what up front. 

3. The core family will never be alone.  

The need to carve family time becomes important.  Grandpa may feel left out when you take just your two sons to dinner - but you have to... tell him that up front.  Make sure everyone understands the family "unit" still needs to be intact.  You're just changing the dynamics a bit.

4. Where will people spend their leisure time? 

Is there defined space in the new home?  Will Gram have her own "living room"?  Or does she have to share the kitchen?  Is her own room her main living area?  What about bathroom space? It doesn't matter what the arrangements are - just talk about them up front.

5. Parallel or Perpendicular family values? 

The main reason living with Mother/Father/Grandmother/Grandfather/Aunt/Uncle can be challenging is  simply: all adults have their own ideas on how things should "operate" in a household.  So, in a new house you purchase together - which rules, well, rule? 

Are you going to church every Sunday?  What constitutes "healthy eating"?  Is there a bed time?  How often and how late do we have guests over?  Bottom line, do your values line up?  And if they don't - can you agree to deal, talk, resolve?  This may be the most important point because living together is a big decision and you need to make sure everyone can do so.. in peace.  Otherwise, it doesn't matter how big that house is!!!

Finally Tonight,

I'm a proponent of Multi-Generational houses.  In a lot of cases it's the right thing to do for many reasons.  I am living that right now.  No doubt, it comes with its own set of challenges but there's no other way I'd have it.  There are so many positive things that can come out of the arrangement... (besides and in addition to getting a bigger/better home).  This time is precious.  It isn't here forever.  Maybe not even tomorrow.  For us, living with my Mom is a blessing. But it is not for everyone.  If living with your loved ones feels like an opportunity for love first and financial opportunity second...  you're on the right track.  

Let me know if  can help you and your family with a dream home of your own. 

Nicole 

 

5 EASY Improvements to Sell Your House (after COVID Quarantine)

The Headlines: 


Stuck in Your House?

Has it made you realize... you need a Home?  




April 2020 is the month we all spent inside.

I wrote a blog on this a few weeks ago explaining why I think this could be a good thing for families all over the world.  You can check that out HERE

But I also predict 3 other things will happen during this time of "quarantine":

1. Agoraphobia cases (a type of anxiety disorder which can eventually lead to a fear of leaving your home - going outdoors) in the U.S. will rise.  While people will soon get the OK to go back to normal, some won't feel comfortable doing so and sadly it could impact them... for a long time.   
2. There will be more Divorces.  The number of cases in China have already gone up.  Typically, a bad marriage won't get better in isolation.  It will end.   
3. People will want to move.  Left in their place of residence long enough - essentially trapped - they will decide it's time for a change of scenery.  Let me explain this one a little more.

There are two kinds of residences.

One is a house.  Simply used as a place to rest your head and eat a couple meals.   Many of us currently live in a house.  Why?  Because we're too busy working.  Keeping up with kid sports.  Shopping.  Catching a movie.  Going out to dinner.  Meeting people for coffee.  Going on vacations.  All of the things that have stopped happening for now.

The other place people live is a home.  This is a place where those inside really enjoy being.  They bought it because they wanted to be there as much as their schedules would allow.  They decorate, cook, play sports in the driveway, swim in the backyard.  They have friends over.  Watch Netflix.  It's a place that they leave because they HAVE to... now that's a home.

It's my contention that after the COVID conclusion... many people will be determined to leave their House and look for a Home.  Suddenly finding a home will become a priority,

If that's you... you may be thinking about selling sooner than later.  So here's some food for thought...

5 EASY Improvements to Sell Your House 

1 - Paint Baseboards
They immediately make your house pop.   The difference is worth the time & low cost.

2 - Install new Light Fixtures/Fans  
I'll be honest, I've taken buyers into homes and they immediately are smitten with the cool chandelier/pendant.  Do you then know how many times sellers will say, "light fixture does not convey."   Really?  That was one of the reasons my buyers perked up to begin with... it won't necessarily kill a deal but a scene stealer light will sweeten it!

3 - Take DOWN Curtains
Many curtains either scream - I'm dated or are too heavy for the room.  There are definite exceptions to this rule... but not many.  If you have curtains that truly enhance the room and you don't mind parting with them, leave them up.

But consider this, if you really like them and take them down before you market the house - YOU can keep them for your next place!  See, win-win.

4 - Replace faucets
It's easier than replacing a counter top and can give that extra sparkle that buyers will notice.

5 - Change the Door Handles/Knobs
This could cost a bit of coin, depending on the quality.  But if you've got old, perhaps brass knobs - you know what I'm talking about.

Consider doing it.  It's like sporting an awesome outfit and wearing old jewelry.  Conversely, put on some fabulous new earrings, throw on an amazing bracelet and it completes the new look!  SOLD!

***Bonus  
This is a no brainer but it warrants mentioning.  Spring cleaning is great for selling a house.  The less stuff in it, the bigger it looks.  Think closet.  Stuffed closet means you don't have enough room.  Closet with space looks bigger.

And do a deep clean.  I mean get out those Magic Eraser Sponges and clean your place up!  You'd be surprised how many people DON'T do this and it's not good.

Finally tonight, I will say one more thing.  I've said it before multiple times.  I did a blog on it HERE  but it doesn't hurt to talk about it again in this forum.  Since we're on the subject and all...

Paint all your Walls White.   This, if you really want to take it up a notch and give your house the most opportunity to SELL FAST.  Painting clearly takes a little more work and possibly time and money...  But, WHITE walls go a loooooooong way.

I know everyone has a white obsession right now.  I always have (see above Blog Post).  But the reason is bigger than that.  No doubt White makes rooms looks larger.  But even more than that, color, even the slightest bit of it... can be offensive.  Think orange accent wall or purple bedrooms.

You may love it - but that potential buyer... hates it.

If you're thinking about buying or selling and want help doing it... don't hesitate to call or email me nicole@onepickychick.com or my brokerage Posh Properties.  Until then, stay safe, healthy and busy!  You may have some work to do...


Pin for Later:

Do You have "Vision" (When You're Buying A Home)?

The Headlines:


There are 2 kinds of buyers. 

Which one are you? 




In the market to buy a house this year?  To me, there's never a time you shouldn't be looking.  Why?  Yes, because I"m a Realtor but also because you never know when the right one will hit you.  The house you never expected pops up and you can't say no.

That's happened to me personally.  And when I don't move on it... (years later) the husband and I complain: "if we would have bought that..."?

So always keep an eye out.  But for what exactly?  That depends on you.  Pay attention to what matters to your lifestyle.  Yes, that can be limiting.   So here's a way to open up the possibilities.  Ask yourself one question:

DO YOU HAVE VISION?

If you do, sky's the limit.  It may not have the exact amount of bedrooms but you can change that.  No white cabinets?  There's paint.  No need for a dining room?  Demo it.  If you have vision, as long as the "bones" are there your options for reno work are endless.

Here's what you cannot change:  1) location and 2) size of lot (usually).  Everything else is up for grabs.

Have you seen Fixer Upper?  Then you know what I'm talking about.

If you buy a home that needs some"TLC" you are, most likely, going to get a better deal.  Because more needs to be spent after you move in.  Here's an example.

I worked with some buyers who knew exactly where they wanted to live.  It was a small neighborhood without a lot of inventory so they kept a close eye on it.  When a house came up... they pounced.  Once inside, they saw it was far from their dream home.  But they knew it had the 2 things that couldn't be changed.  The rest they could work around.  They bought it.

While going through the buying process they brought in a contractor to see if their plan had legs.  It did.  And work began as soon as the papers were signed.

After a few months their home was ready to roll!

Here are the pictures:

Above is the living room. They added one huge sliding glass door that fully opens to the patio (a trend we're seeing a lot right now) - we live in Arizona after all.   They also spruced up the living room by adding industrial shelving, a mantel and busting out a wall to make for one big "great room". 

Here's the dining room they demo'ed.  They moved more walls and small cabinetry.  However, they also enclosed one area (with french doors) so they could have a formal office space.  

But the crowning glory, as with almost any house, is the kitchen.  You know, the place where we ALL spend time.   The kitchen, before, was nothing special.  Just a galley kitchen that felt super cramped.  This busy house needed some major space.  So they turned the island around, made it way bigger and used the breakfast "nook" to make for ONE big open area.  It absolutely works.

They're not completely finished.  They want to do a few more tweaks in the bathrooms.  But, to everyone who visits it looks like a whole new house.   In fact, the former owners came by and I hear it brought them to tears... happy tears.

It is now the new owners dream home.  Because they had vision.  They bought a house that was less expensive than most in their target neighborhood and then turned it into exactly what they wanted.

THEY had VISION.  The question now is... do you?

Finally tonight, if you're in the market to buy a new home ask yourself the vision question.  It's okay of you don't have it.  There are lots of "turn key" homes out there.  It certainly will take less time and effort to purchase one of those.  But know there are also lots of people who can help you with "finding your vision".  Realtors, interior designers and contractors can all lend a hand.  The homeowners above used George Construction in Phoenix and myself as a Real Estate Agent.

Let us know if we can help you this year!



Pin for Later:

What to Do If You Buy (or Sell) A House in 2017

The Headlines:


If you're going to buy a house this year...

Or sell this year.

Read this first.



Many of you know I love houses.  Buying, selling, decorating and remodeling houses is something I love to do.  It really became my passion while I was still working as a journalist in the Phoenix, Arizona market.  Because of that, many years ago I got my Real Estate License.  I've used it over the years for home sales and property management.  But now I want to do more.  In the past month I've met with and discussed Real Estate with Industry professionals and here are my 5 biggest take aways.

1 - Know What You Want
This is the first issue.  It's a simple one.  The most fun one.  What do you want to buy?  Make a list.  How many bedrooms, bathrooms, garage spaces?  Your Realtor will want to know specifics.  What's important to you?  Mountain view.  Kitchen Island.  Dining Room.  Where do you want to live?  Particular Subdivision, zip code or city.  Then finally, what are you deal breakers?  Busy road, no pool, grass you have to maintain.

Same goes with selling.  What do you have to do/spend to get your home ready?  What do you need to make for it to be worthwhile?  How many homes are for sale in your zip code?  Not many... that's good for a sale.  Not a lot of inventory = higher sale price.   Sure, your Realtor can help out with some of this, but do your own investigating first to be more informed.

Write things down and communicate them with your Realtor.  Home buying and selling is time consuming.  But it won't be as bad if you know exactly what you need and want.

2 - Buy What You're Comfortable with... NOT What You can Afford 
These are 2 different things.  You may make $4,000 a month but you can't spend $3500 on your mortgage.  Your Loan Officer will help you decide what you'll be comfortable with paying.  It's typically about 40-45% of your gross income.  And that's being generous.  YOU need to honestly evaluate your lifestyle and that will help you choose the price range for the house you can buy.

3- Interview Your Realtor and Loan Officer to Find the Right one FOR YOU.
There's a difference between Mortgage Brokers/Bankers/Banks. The first two more or less shops your mortgage around to get the right deal for you.  The latter has their bank wheelhouse to shop in.  Which one is better?  That depends on your specific situation.  Get recommendations from friends to get contacts.  Then talk to them about your options.  If they want your business, and they should, they'll tell you what you need to know to make the right decision.

Realtors are a dime a dozen.  You ever notice that?  In Los Angeles, where I went to college, every where you turned there were actors.  In Phoenix, it seems like everyone's a Realtor.  So, find the one that fits your needs.  That does NOT mean the one whose wearing the shiniest watch, the guy at the biggest brokerage or the person who's going to sell your house at the price you think it should be.   It  means you need to find the Realtor who will be honest, work the hardest and have your best interest at heart.  Greed isn't always good in Real Estate.

4 - Ask Questions
I firmly believe, there is no dumb question.  Well, almost never.  That's what years of asking questions has taught me.  Trust me, you'll feel a lot more dumb if you don't get the answers you need.  Realtors and Loan Officers are here to help.  They may not know everything but, if they're good, they'll find the answers.

I talked to a gal the other day who firmly believed you needed 20% down to buy a house.  NOT TRUE, I said!  With Conventional loans these days, many are only putting down 10%, sometimes 5%.  An FHA loan only requires 3.5%.  And in some locations, like Metro Phoenix, there are programs where they COVER your down payment.  Meaning, you pay nothing.   For instance, the "Home In 5" Program.  Those making $88k or less a year can qualify to buy homes in certain designated areas.  As long as you meet the requirements, the right mortgage broker can help you get into something you may never have known existed.

You just need to ASK!

5 - Take Your Time (but not too much)
There's no crystal ball but people believe 2017 will be a banner year for Real Estate.  Mortgage rates will stay fairly steady... and while that may not be what drives people to purchase homes, this will.  Like him or hate him, with the newly elected President Trump in office, there's a general feeling of positivity in the economic department.  And many believe, the economy drives home sales, not rates.  With more jobs, less taxes, better business on the horizon - things are changing.  Regardless of people rioting, boycotting, saying the same sentence for 4 years in a row.  Seriously.  Actor Shia LaBeouf really tried to do this, until he got arrested outside the NY Museum in late January.

In 2017, people will want to buy their first home, move up or invest.  And that's good for real estate!

Who knows what 2018 will bring.


Finally tonight,  to write this post I met with 3 Loan/Mortgage professionals.  They know their stuff, word hard and are full of good information.  Not to mention, they're all guys I actively refer people to and trust with my own dollars.  If you're in the market to buy a home and need some help getting started, give them a call, their info is below and in no particular order.

Happy Housing!


Erik Goldenson
KS State Bank
egoldenson@ksstate.bank
602-329-7230

Tom Maison
tom.maison@fairwaymc.com
602-206-3144

Greg Halvorson  
greg.halvorson@usbank.com
480-227-5900