Valley Wide Homes Real Estate Podcast with Craig Barton Craig Barton

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } I’m sure you’ve heard a lot about tax reform lately. Here’s a few ways The Tax Cuts and Jobs Act will affect the real estate market. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation There's a lot of uncertainty about The Tax Cuts and Jobs Act and its effect on real estate. Let’s first take a look at the four key tax changes impacting the housing market at this moment: 1. Deductions for property taxes. Prior to the new tax bill, if you itemized your deductions, you could deduct all of your property tax. Going forward, this amount will be capped at $10,000. 2. Deductions for mortgage interest. The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/2017. Other loans of up to $1 million are grandfathered in. 3. Home sales exclusion for capital gains. If you sell your home and turn a profit, then up to $500,000 of that profit is exempt from capital gains tax. Although earlier versions of the bill required you to live in the home for five out of the last eight years, the final bill made no changes to the capital gains exclusion. In order to qualify for this exclusion, you must have lived in your home for two of the past five years to claim this exemption—just like before.  4. Deductions for moving expenses. The final bill repealed the moving expense deduction, except for those who are members of the Armed Forces.  The first two changes increase taxes on current homeownersand make homeownership less attractive. This is a part of why the National Association of Realtors claims that home prices could drop by more than 10% due to the new tax plan. On the other hand, the last change makes it more expensive to sell your home. As a result, some potential sellers might shy away from the market. These reforms may drive home prices down in the midterm. We'll have to see how the different changes play out in reality and how they interact with other real estate conditions. However, there does seem to be a consensus among experts that current reforms might drive home prices down somewhat in the midterm. On the bright side, home sellers do still get to take advantage of the home sales exclusion for capital gains. That is a major victory for real estate. That's why if you've been thinking of selling your home, now might be a good moment to start the process. If you have any questions, whether you are buying or selling, you can always call me or shoot me an email. I can give you more specific recommendations based on your unique situation. I look forward to hearing from you soon.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Here are three ways to winterize your home. Making these improvements will save you money and add value to the home. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Winterizing your home can pay for itself and then some. It can help you save money on costly repairs. The right project could save you money directly in the form of lower utility bills. The right winterization project could significantly increase the resale value of your home. But here's the thing: Not all winterization projects are equally valuable. That's why I've collected the top three projects that stand out in terms of the return they will give on your investment. 1. Fiberglass attic insulation. Each year, Remodeling Magazine releases its Cost vs. Value Report for various home upgrades. This year, only one project had an ROI of over 100% and that was fiberglass attic insulation. If you add insulation to your attic tomorrow and decide to sell your home right after, you can expect that you will be able to sell for a premium. Even if you aren't selling your home just yet, the improved attic insulation will accrue even more value, in terms of lower heating bills and increased comfort in your home. 2. Energy-efficient windows. A typical window replacement yields over a 70% return in terms of the resale value of your home. Depending on the shape of your current windows, you could save an additional 15% or more off your heating bills. Plus, new windows can add even more value to your home in terms of increased thermal and acoustic comfort, more light, and better design. New, energy-efficient windows bring a nice ROI. 3. Gutters and downspouts. This last item won't save you money directly by cutting down your energy bills. It could, however, save you tens of thousands of dollars in terms of avoided repairs. Clogged gutters and downspouts can trap moisture. When the weather gets really cold, they can also help ice to form. This can ruin your roof and sidings, causing tens of thousands of dollars in damage. It will also impact the curb appeal of your home, which generates higher returns in terms of resale value than remodeling the inside of your home. And those are three of the best winterization projects you can undertake to maximize your investment. If you have any questions for me about any of these upgrades or anything else related to real estate, give me a call or send me an email. We look forward to hearing from you soon.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } We have a few different tips to help you save on your energy bills this winter. They’re surprisingly easy and inexpensive. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Whether you love it or hate it, winter is here. You need to prepare your home properly in order to avoid big heating bills and freezing nights when the cold weather hits. Now, there are lots of large energy-saving projects out there, and they can all be worthwhile investments. However, I want to share just three super simple tips with you today. Even though these tips are simple, they are still enormously effective in making you more comfortable at home while saving you money at the same time: 1. Get a draft snake (or two). The Department of Energy estimates that reducing drafts can lead up to 30% in energy savings. One simple way to reduce many of the drafts in your home is to install a "draft snake," which is a little cloth element that slips under your door. You can get a collection of draft snakes for just a few dollars each on Amazon, or you can fashion your own using nothing more than an old towel. Reverse your ceiling fans to start. 2. Reverse ceiling fans. Hot air rises, while cool air hangs around your feet. This can be frustrating in the wintertime, because you don't want to run the heating without getting the benefits of it. An easy way to fix this is to run your ceiling fans in reverse. Instead of pushing air towards you, the fan will move that hot air that's clinging to the ceiling, dispersing the heat and making you feel warmer while spending nothing more on heating. 3. Flush your water heater. There are many things you can do to improve the efficiency of your water heater. However, simply draining your water heater can get rid of sediment and particles that are clogging up your heating machine and making it less efficient. Depending on the mineral content of your water, this could lead to a significant improvement in efficiency. And there you have it, three simple and little-known tips to be a little more ready for the winter. If you have any questions for us about these tips or about anything else related to real estate, give us a call or send us an email. We look forward to hearing from you.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Refinancing your mortgage is a great idea, but it could affect your credit score. Here’s how. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Mortgage rates are still at historic lows. For many homeowners, it's a great time to refinance. Refinancing allows you to pay off your current mortgage with a new mortgage at a lower rate. Refinancing means lower monthly payments and more money left in your pocket. But here's something important that many people don't know: Refinancing can affect your credit score negatively. You see, when you refinance, the new creditor will do a "hard inquiry" about your credit history. This inquiry can actually lower your credit score. Looking for new credit lines (like a new mortgage) equates with greater credit risk. A hard inquiry could decrease your score by five points automatically. How much will a hard inquiry actually lower your credit score? This depends on several factors. In some cases, a hard inquiry might not lower your credit score at all. However, if you've recently opened up multiple new credit lines (auto loans, credit cards, etc.), then a hard inquiry could decrease your credit score by up to five points. This is true if you only have a short credit history. And if you shop around for the best rate for more than 45 days, you will get multiple hard inquiries. Each of them will contribute to the total effect on your credit score. So what does this all mean for you? Unfortunately, there's no simple answer. It's going to be a part of the calculation you have to make for yourself, which will also include the refinancing fees, your own credit history, and how much you could be saving with a refinanced mortgage. If you're looking for help in making this decision, give me a call. I can put you in touch with several top Fresno mortgage brokers. As always, if you have any questions about the Fresno real estate market or if you want to talk about the finer points of mortgage rates and refinancing, give me a call as well. I’m here to help. Until next time, make it a great day!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Why are homebuyers more optimistic than they have been in the past few years? Here’s what we found. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Here’s a paradox for you: Right now, homebuyer confidence is at an all-time high, according to a survey performed by Fannie Mae. Furthermore, an increasing number of people, particularly renters, think now is a good time to buy a home. Yet at the same time, housing inventory remains very tight. It’s down 6.5% nationally from last year. Home prices are also up 6.9% nationally over last year. In other words, homebuyers are optimistic at a time that the market seems to be favoring sellers. So, what's going on? Why are homebuyers so optimistic all of a sudden? Here are three possible explanations: 1. Lending is loosening up. Over the past several years, mortgage rates have seen historical lows. This has meant that homes are actually more affordable, in spite of the increase in prices. However, lending has been very tight. Fortunately, that’s changing. Lenders are approving mortgages at the highest rate since 2011, with 77% of mortgages for home purchases approved. Lenders are approving mortgages at the highest rate since 2011. 2. Jobs are looking good. At the moment, fewer homebuyers are worried about losing their jobs, according to the same Fannie Mae survey. It's not just job security that's contributing to greater optimism about buying a home. Overall income is higher, making homes more affordable by comparison. The median household currently has 150% of the income needed to buy a median home, compared to a historical average of just 125%. 3. Long-time renters are ready to buy. Millennials, the generation of people born after 1980, have largely opted out of homeownership until now. They have been renting for a longer time, putting them higher up on the pay scale compared to previous generations of first-time homebuyers. But now, many millennials are finally hitting an age when they are willing to commit to buying instead of renting. This is reflected in the Fannie Mae report, which states that much of the increase in homebuyer optimism comes from current renters. What all does this mean for you? If you're looking to buy a home, all of the above reasons should give you confidence that now is indeed the right time to buy. If you’re thinking about buying or selling a home, click the links above to search for homes on the MLS or find out how much your home is currently worth. And if you have any questions about the Fresno area real estate market, whether you're thinking of selling or buying, give me a call at 559-272-0724 . I'm here to help. I look forward to hearing from you soon.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } The Fed’s recent decision is going to have a big impact on our economy and real estate market. Here is everything you need to know. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation The Fed just announced a move that will have a big impact on sellers and buyers. While at the recent meeting on September 20th, the Fed decided to cut back their balance sheet. This might sound boring compared to the usual news of Fed rate hikes, it’s actually a big deal. The financial crisis we saw a decade we saw a year ago caused the Fed to take emergency measures. So, they injected a huge amount of money into the economy by buying up various financial assets in an enormous sum. These financial assets amounted to sum amounting to about 25% of the United States economy at that time. But now, the economy has recovered to the point where the Fed feels comfortable taking some of this money back. As you can imagine, this is going to have a huge impact on our economy and real estate market. This change is going to put upward pressure on consumer borrowing costs such as mortgage rates. This change is going to put upward pressure on consumer borrowing costs such as mortgage rates. In other words, if you are thinking of buying a home you should know that the Fed’s most recent move will eventually make it more expensive to do so. Also, sellers must be aware that this change could result in fewer interested buyers. This might lead to a decrease in prices, making it harder to sell. However, this is not an immediate change. The rollback will be gradual, with the Fed taking back just $10 billion per month. Compared to the $4.5 trillion total that was borrowed originally, this is not a significant amount. While the Fed’s move will not take effect immediately, you should act quickly if you have been thinking of buying or selling. Now is the time to make your move before the process of this change starts to escalate. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.