3 Reasons Why We Don’t Know Our Neighbors, According to an Urban Planner

 
 

We wave at our neighbors, but we rarely know them. According to a survey, only 26% of Americans feel like they actually know their neighbors. Here’s why, according to an urban planner:

Most destinations (and people) are not within walking distance.

I tend to feel more connected to a city when I can be independent of a car. I always thought my sense of community from walking was more of a personal preference, but it turns out that living in places that encourage us to walk helps us build trust with one another.

As sociology professor Rebecca Adams has noted, there are a few key conditions necessary for developing friendships: “proximity; repeated, unplanned interactions, and a setting that encourages people to let their guard down.” This can come from seeing the same people at your favorite bar or learning the name of the crossing guard as you drop your kids off at school. When we can regularly walk to things, we allow for organic relationships to occur.

Jordan points to two developments from the previous century that play a big role. “In the 1920s, you had both the automobile and the first single-use zoning codes.” Separating “land uses” such as residential, commercial, and industrial had understandable beginnings but ultimately “served to remove much of the texture from our neighborhoods,” he says. “Combine that with decisions to mandate more space for cars, and you end up with people and destinations spread ever further apart.”

Our homes and neighborhoods aren’t designed to encourage neighborly interactions.

I remember my first apartment after college. I was living in a complex that likely housed some 300 young professionals. I had fantasies of making friends with people “just down the hall.” I never made friends with a single person in my building.

But I experienced a positive shift once we began renting in a neighborhood of more pre-war “missing middle” housing with lots of small-scale businesses mixed in. Jordan says that some simple design decisions can have a big influence on how we experience our neighborhood. These days, we see fewer houses with front porches and fewer streets with sidewalks

“It may sound quaint, but the front porch or stoop serves the important purpose of putting us in touch with our neighbors — especially in a way that lets us put our guard down. Of course, context also matters: we’ll want to spend more time along streets that are comfortably narrow and low-speed, and we’ll encounter more people walking if there are plenty of accessible destinations for us to walk to. If you’re required to leave your neighborhood to get to everything from work or school to shopping and entertainment, and everything requires a car to get to, that leaves very little time or opportunity for developing relationships with your neighbors.”

We prioritize the car over the person.

It’s also difficult to ignore the impact of cars on the places we call home. Cars did not have to become the central focus of how our cities were planned, but decades of design standards have made car use the default. Jordan notes, “[This evolution] has not been good for human relationships. It has been good for the automobile industry and related industries. […] We can’t design places for maximum car comfort and expect them to function well as places for human interaction.”

He shares that cities can start by removing driving incentives such as parking minimums and allowing denser development and mixing of uses. We can also start changing design standards to create slower streets that prioritize people rather than vehicles. “If readers are interested in going deeper on the human impact of our development decisions, as well as what we can start doing as individuals and local governments in response, a great place to start would be Strong Towns.”

Get the full story on Apartment Therapy.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

There’s no sign of the typical fall slowdown in home buying

 
 

One-third of homes that went under contract had an accepted offer within one week of hitting the market, a new report from Redfin found. This is up from 30% during the same period a year prior and 2.2 points from a month earlier.

The report is based on data from the four-week period ending Oct. 10.

In addition, the number of homes that went under contract within two weeks of listing rose to 46% from 42% during the same period in 2020. While the median number of days a home is on the market rose to 22 days, which is a full week longer than the all-time low of 15 days in June and July, it is still 10 days less than a year earlier.

This increase in the share of homes selling this quickly is unexpected for this time of year when we typically see a seasonal slowdown.

“Most sellers who are on the market now are very motivated to move: landlords with vacant homes, families who already upgraded and need to sell their previous homes, couples splitting up,” David Palmer, a Redfin listing agent, said in a statement. “As home-buying demand declines into the fall, I’m only encouraging people who have urgency to sell now. Otherwise, I’m advising them to wait until the new year.”

Another sign of continued strong demand is the 4% year-over-year increase in pending home sales. This also represents a 46% increase compared to the same time period in 2019, according to Redfin.

While demand has remained high, inventory continues to drop with new listings of homes down 8% from a year prior and the total number of active listings down 21% from 2020.

As a result of this high demand and low inventory, the median home-sale price rose 13% from a year prior to $355,600. Asking prices of newly listed homes also rose, reaching a median of $362,047, marking a 12% increase from a year ago. However, this is 0.7% lower than the all-time high set during the previous four-week period ending Oct. 3. Decreases like this are typical for this time of year, according to the report.

Even with high asking prices, due to the highly competitive nature of the market, 46% of home still sold for above list price, which is up from 34% during the same time period in 2020, but also the smallest share since April 2021. Additionally, the average sale-to-list price ratio fell to 100.7%, also the lowest level since April.

Although there are numerous indicators of a still red-hot market, one indicator of a possible seasonal cooling off is the percentage of homes for sale each week undergoing a price drop rising to 5.1%, the highest level it has been since the four-week period ending October 13, 2019.

Read more on Housing Wire.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

How to Buy a House in Your 20s—and Why You Really Should

 
 

Curious about how to buy a house in your 20s? If you’re dubious it can be done, we get it. Between entry-level salaries, college loans, and the desire to just be young and have fun, 20-somethings often think buying real estate is beyond their reach.

No so! It is entirely possible to buy a home in your 20s and become a  first-time home buyer, and it will benefit you big-time down the road. Here’s how you can make your home-buying dreams come true much sooner than you think.

How to buy a house in your 20s: Save for a down payment

Being a homeowner with a mortgage is not like renting. To afford to buy a house at your age, you’d better have some cash saved up for a down payment on your mortgage—a lot of cash, actually.

Most financial planners recommend that first-time buyers make a down payment amounting to 20% of the price of the home. So on your typical $250,000 house, that would amount to $50,000. Ouch!

Granted, you don’t have to put down 20%, but doing so enables you to avoid paying private mortgage insurance, a premium that can increase your monthly payment by up to 1.15%.

If you don’t have a ton of money in savings, one way to afford the down payment is to ask Mom and Dad for financial help. Another option to afford the down payment bill is to apply for down payment assistance.

Depending on your income and other factors, you could qualify for one of over 2,200 down payment assistance programs nationwide, which help out first-time home buyers with low-interest loans, grants, and tax credits.

So, how much money are we talking about? Well, one study found that buyers who use down payment assistance programs save an average of $17,766. Sadly, most consumers aren’t aware of these programs, or assume they’re too difficult to qualify for. Don’t be one of them!

Along with a down payment, homeownership will require you to pay the monthly mortgage, property tax, and homeowners insurance. But sellers usually take care of the closing costs for real estate transactions.

 Shore up student loan debt

Student loan debt has surged to an average of $28,950 per borrower, reports the Institute for College Access & Success. But college debt doesn’t automatically prevent you from becoming a homeowner.

Most mortgage lenders require a borrower’s debt-to-income ratio—how much money you owe divided by your income—to be no more than 36%. So, someone making $6,000 a month and paying $500 a month in student loan debt would be able to afford a maximum monthly mortgage payment of $1,680—in many markets, that’s plenty to buy real estate. But, if you’re shouldering too much student loan debt to qualify for a mortgage, you may still have a few options.

One way to make room for a mortgage is to refinance and extend the life of your college loan. This results in smaller monthly payments over a longer period of time, so you’ll have more you can put toward a mortgage. The caveat is you’ll end up paying more in interest over the life of your college loan, but it means you can buy a home now and, in turn, take advantage of today’s low mortgage interest rates, says Heather McRae, a senior loan officer at Chicago Financial Services.

Moreover, nearly half of states today offer housing assistance to college grads carrying student loan debt. For instance, New York’s new Graduate to Homeownership program provides assistance to first-time buyers/college grads in the form of low-interest-rate mortgages or up to $15,000 in down payment assistance. You can meet with a mortgage lender to find out if you qualify for one of these programs.

Check your credit score

Unlike older generations, home buyers in their 20s tend to have shorter credit histories. That can be a problem, since if you have limited credit history, the odds are greater that you have a mediocre credit score—the numerical representation of how well you’ve paid off past loans (like credit cards).

Mortgage lenders usually require borrowers to have a minimum credit score of 660; they also look at your credit utilization ratio—your current debts, divided by the credit limit on the sum of your accounts.

For example, if you’re carrying a $400 debt on your credit card and have a $1,000 credit limit, your credit utilization ratio is 40%. Unfortunately, relatively new credit users tend to have a higher credit utilization ratio.

You’ll want to get a free copy of your credit report at AnnualCreditReport.com. Check for errors—1 in 4 Americans spots mistakes on their credit report, according to a Federal Trade Commission survey. And, if your credit isn’t up to par, you may have to take a few months to raise your score. Or you can get someone with good credit (like your parents) to co-sign the loan for you to help you become a homeowner.

How to buy a house young? Purchase a starter home

As a first-time home buyer, you don’t have to find your “forever home” right now.

In fact, there are a couple of big financial benefits to buying a starter home while you’re in your 20s. First, your mortgage payments will probably be more affordable, since you’ll likely be buying a cheaper house. Second, you may be able to get a 5- or 7-year adjustable-rate mortgage and qualify for a lower interest rate than you would with a 30-year fixed-rate loan—a good decision as long as you plan on moving to your dream home before the loan’s interest rate lock expires. Talk to your real estate agent about buying a starter home.

Plan for unexpected home expenses

All home buyers should have a rainy day fund to pay for emergency home repairs such as roof damage or a gas leak, as well as monthly mortgage payments, closing costs, insurance, and property tax. And this is especially important for young or first-time buyers. Why? Research shows many millennials are less financially responsible than older generations.

A study by TD Ameritrade found that more than 9 in 10 millennials overspend, fall short on savings, or take on additional debt at least once a month per year. Furthermore, a recent GoBankingRates.com survey found 52% of millennials said they feel pressure to keep up with their friends due to always going out.

Consequently, “Don’t buy at the top of your budget,” says Sanderfoot. “Unless you’re buying new construction, you need an emergency fund for big repairs.”

She adds that home buyers may also want to get a home warranty, which is a policy that would cover the cost of maintenance and repairs for certain home appliances if they break down. (Plans start at about $300.)

Learn more.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

What Is a Right of First Refusal in Real Estate? Getting First Dibs on Making an Offer

 
 

Imagine being able to make an offer on a house before any other interested home shoppers can even have a look-see.

If you have a right of first refusal negotiated into a lease or other housing agreement, you get to be the first in line to buy the real estate.

But is this truly an advantage for the right-of-first-refusal holder? And how does it work? Let’s take a closer look at right-of-first-refusal agreements and what they mean for both buyers and sellers.

What is a right of first refusal in real estate?

In real estate, right of first refusal is a provision in a lease or other agreement. It gives a potentially interested party the right to buy a property before the seller negotiates any other offers. It’s typically written up before a homeowner puts a property on the market.

This clause allows the sellers to market the home at will, but it might end there.

They can list the house, but before they can even think about accepting that big first offer that rolls in, the owner must notify the person entitled to right of first refusal. At that point, the contract holder can decide whether or not to buy the property.

If this person declines, the homeowner is free to negotiate with other potential buyers interested in the property.

When is a right of first refusal used?

There are a few situations in which a right-of-first-refusal clause is relevant.

  • Between a tenant and a landlord: If a tenant or tenants are interested in buying the rental property they live in, and have a right-of-first-refusal clause written into the lease, the landlord must consider their offer before negotiating with other potential buyers.

  • Between family members: Usually, this clause is used when a family member wants to buy the home. The family member (or members) in question have a chance to submit their first offer when the house goes on the market. But if the family isn’t interested in the real estate at that time, the owner can open it up to a third party.

  • When dealing with a homeowners association or condo board: Sometimes a homeowners association or condo board will put a right-of-first-refusal clause into its governing documents. This allows the board to vet potential buyers before a homeowner can accept an offer. Many communities use the clause to prevent situations like discount sales that would lower their value. In some cases, it even gives the board the option to reject an offer entirely.

Read more like this on Realtor.com

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

Found The One? 10 Things To Do Before Making an Offer on a House

 
collov-home-design-UUsQk_9bdR8-unsplash (2).jpg
 

The house hunting process is full of anticipation and excitement, and once you think you’ve found The One, it’s tempting to rush to make an offer and seal the deal before someone else scoops it up.

But wait! There are some things you want to consider before making an offer on a home that could save you a whole lot of time, money, and potential headaches down the road.

Here are some things to consider before making an offer to ensure that you get the best deal possible and that you’re not getting in over your head.

1. Hunt down the home’s history

You (and your real estate agent) should do a bit of sleuthing to find out the history of the property. You want to know how long the property has been on the market, if it’s truly a “new” listing, or if it was previously on the market within recent years.

Have your agent look at the history as far as the pricing goes to see if any reductions were made and if the property was ever under contract and came back on the market.

Beyond that, it’s always a good idea to have your real estate agent contact the listing agent before submitting an offer.

2. Fish around about finances

Make sure you know who owns the current property, when it was last purchased, and if there’s a mortgage or any additional loans taken out on the property.

To do so, you and your agent can check tax records, the property appraiser’s records, or court records if accessible in the county where the property is located. The seller’s flexibility may be affected by the amount owed on the property.

3. Probe permits

If you can access building department data, it’s worth a look to see if there has been anything done to the property over the years whereby a permit was pulled or not pulled.

4. Measure the market

Beyond the property you’re considering purchasing, you also want to do research on the state of the market for the neighborhood and area in which it’s located. That means looking at all the active, under contract and, especially, sold properties from the past year or so to compare prices.

Look at where the list price of the home you’re considering falls in relation to others on the market. Is it the most or least expensive property, or does it fall somewhere in between?

5. Investigate the housing inventory

The current inventory in an area can also be helpful when deciding what type of offer to make.

“Numerous homes for sale would indicate more of a buyer’s market in that particular area. For example, where sellers may be more willing to negotiate,” Ameer says. “If there are a lot of homes for sale, why? Are people wanting to leave for any particular reason? What percentage of the asking price are homes selling for? What are the average days on the market?”

Answers to these questions can help you craft your best offer.

6. Take a look at taxes

Beyond your mortgage payment, there are also taxes to pay on your property. While they vary by area, they can be pretty steep and you must factor them in when deciding if you can afford a property.

To start, review the current taxes as well as the estimate of the property taxes based on the new sales price to ensure you are financially comfortable with those costs. Also know that your property taxes can change each year based on a number of factors, so make sure your budget has a bit of cushion in case they increase.

7. Find out about fees

If you’re buying in a community that has homeowners association (HOA) dues or other fees, make sure you understand what those are and how often you will be assessed. You also want to make sure you understand what you’re getting for those fees, if any special assessments are planned, and if there are any other fees that will be charged to you at closing

8. Inquire about home insurance

Beyond your mortgage and taxes, there’s also the cost of home insurance to consider. Get an idea of how much the seller is currently paying for insurance and obtain quotes for a new policy if you purchase the home. Investigate whether there are any factors that could affect the insurability of the home, such as the age of the roof or other systems. Will anything along these lines need to be replaced to lower the insurance premium in the future?

9. Understand the cost of utilities and upkeep

Don’t forget to consider the cost of utilities and upkeep of a property. If you have a football field–size yard, can you maintain it yourself or will you need to hire help? If the home has a pool or other outdoor living features, how much will it cost to keep them maintained and in good working order? Is the home a fixer-upper, or can you just move in and enjoy it?

Ask to review a seller’s disclosure before making an offer. If the seller has not completed one, you can make your offer contingent on review of one being completed by the seller within a specified period of time. This will give you an idea of the age of major systems such as the roof, electrical, plumbing, HVAC, etc., which can be pricey to replace.

10. Dig in to day-to-day life

Beyond the finances, you also want to get a good idea of what your life will be like living in a particular home. That means looking at things like crime in the area, evaluating the local schools (even if you don’t have children, they can have a big impact on your future selling price), reviewing any homeowners association rules, and checking commute times to work and other places you go frequently. No one can give you a crystal-ball view, but with a little research you can get a good idea of what your day-to-day life may look like.

Keep reading on Realtor.com

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma