Buying A Home • October 6, 2023

Benefits of Buying Your First Home

by Ellen Kirchdoerfer

Thinking about buying your first home? Knowing what led other people to make that decision can be helpful. According to a recent survey of first-time homebuyers by PulteGroup:

“When asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.”

While that survey looked specifically at first-time homebuyers buying newly built homes, the same sentiment is true for just about anyone buying their first home. Here’s a bit more information to help you think about those two benefits of homeownership to see if they’re a key factor for you too.

Benefits of Buying Your First Home

When You Buy a Home, You Have More Stability than When You Rent

You might want to stop renting because rents keep going up. If you’re a renter, that means there’s a chance your payment will increase each time you sign a new rental agreement or renew your current one.

On the other hand, when you buy your home with a fixed-rate mortgage, your monthly housing payment is predictable over the length of that loan. This stability can give you peace of mind that renting just can’t provide. Jeff Ostrowski, real estate journalist, breaks it down:

“With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan. Sign a rental lease, however, and you could see your rent rise the following year, the year after that and so on.”

When You Buy a Home, You Grow Your Wealth as Home Values Climb

Beyond that, owning a home can also be an excellent long-term investment. While renting may be the more affordable option right now, it doesn’t allow you to grow your wealth over time. Mark Fleming, Chief Economist at First American, explains that’s an important distinction to consider:

“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased. Yet, accounting for house price appreciation in that cost of homeownership, whether to rent or buy will depend on where, and if, a home is likely to cost more or less in the near future.”

Basically, renting doesn’t allow you to build equity. In contrast, homeownership can help you grow your net worth as your home’s value appreciates. That’s a significant perk you can’t get if you keep renting.

When you take that into account, it may make better financial sense to buy. Most experts project home prices will continue to appreciate over the next few years at a pace that’s more normal for the market. That means when you buy a home, not only are you investing in a place to live, but you’re also investing in your financial future.

Bottom Line

If you’re ready, it can be a smart move to buy your first home instead of renting. Let’s connect so you can stabilize your housing payment and start building wealth for your future.

Resources

More resources for your homeownership journey:

Home Maintenance • October 3, 2023

October Home Maintenance Checklist

by Ellen Kirchdoerfer

October is here! October brings much beauty to Cape Girardeau County. Whether you live in Cape Girardeau MO or Jackson MO, the landscape is sure to be full of vibrant fall colors. Why bother with the October Home Maintenance Checklist when we could be enjoying the outdoors?

October also means the temps are starting to drop as we begin to move indoors.

It is important to start preparing our homes for the winter migration to come.

October Home Maintenance Checklist

Here are a few things we need to focus on to start preparing our homes for that move. Let’s get started…

Check Furnace Filters / Change if Needed
Run Water & Flush Toilets in Unused Spaces
Check Water Softener & Add Salt if Needed
Clean Gutters & Downspouts
Clean and Inspect Chimney
Clean Garbage Disposal
Treat Septic System if Needed
Fall Deep Clean Living Areas
Fertilize and Seed Lawn
Check Outdoor Light Bulbs

Tackling a couple of tasks from the list each week will still allow plenty of time to visit the local pumpkin patch with the rest of the family.

Cleaning the gutters can be a challenging task. Not the kind of job you look forward to even though it is a very important job to keep current. You will find some very helpful tips in this article, “9 Tips To Clean Your Gutters Without Breaking a Sweat.” Safety First. Make sure you have an assistant ready to help!

Not sure how to clean your garbage disposal? Here is a short video with a couple of quick steps to keep it clean…

Just in case you missed September, you can find it here.

So there you have it, Cape County! Start the list this weekend and leave much time to enjoy October!

Home Maintenance • September 1, 2023

September Home Maintenance Checklist

by Ellen Kirchdoerfer

Can you believe it is September already? Let’s get this September Home Maintenance Checklist out of the way so we can really enjoy fall.

–Inspect Roofing for Damage and Leaks
–Get Furnace Serviced
–Check Weatherstripping
–Clean Garbage Disposal
–Treat Septic Tank
–Test Carbon Monoxide and Smoke Detectors
–Clean Range Hood and Filter

The weather will soon be turning cold. Hard to imagine after this hot summer…it will happen though. Now is the time to start preparing your home for those cold winds before they arrive. Start by checking the weatherstripping. Here is a Guide To Weatherstripping that will help. Click here.

Just in case you missed August, you can find it here.

There…that’s not so bad! Now that the September Home Maintenance Checklist is finished, we still have time to go to the Pumpkin Patch!

Finance • August 16, 2023

Four Ways You Can Use Your Home Equity

by Ellen Kirchdoerfer

If you’re a homeowner, odds are your equity has grown significantly over the last few years. Equity builds over time as home values grow and as you pay down your home loan. And, since home prices skyrocketed during the ‘unicorn’ years, you’ve likely gained more than you think and may not be sure how to use your home equity.

According to the latest Equity Insights Report from CoreLogic, the average homeowner has more than $274,000 in equity right now. That much equity can help you achieve certain goals. In a recent article, Bankrate elaborates:

“While the pandemic created serious challenges, the silver lining for anyone who owned a home was the sizable equity gain. Understanding how home equity works, and how to leverage it, is important for any homeowner.”

Four Ways You Can Use Your Home Equity

Here are a few examples of how you can put your home equity to work for you.

1. Buy a Home That Fits Your Needs

If your current space no longer meets your needs, it might be time to think about moving to a bigger home. And if you’ve got too much space, downsizing to a smaller home could be just right. Either way, you can put your equity toward a down payment on a home that fits your changing lifestyle. A real estate agent can help you figure out how much equity you’ve got and how to use it when buying your next home.

2. Reinvest in Your Current Home

Renovations are a great option if you want to change your living space, but aren’t yet ready to make a move. Home improvement projects give you the freedom to tailor your home to match your needs and personal style. But it’s essential to consider the long-term benefits certain upgrades can bring to your home’s value. Lean on a real estate professional for the best advice on which improvement projects to prioritize in order to get the greatest return on your investment when you sell later on.

3. Pursue Personal Ambitions

Home equity can also serve as a catalyst for realizing your lifelong dreams. That could mean investing in a new business venture, retiring, or funding an education. While you shouldn’t use your equity for unnecessary spending, using it responsibly for something meaningful and impactful can really make a difference in your life.

4. Understand Your Options to Avoid Foreclosure

Today, the number of foreclosure filings remains below the norm, so there’s no need to fear a wave of foreclosed homes flooding the market. But unfortunately, there are still some homeowners who experience the foreclosure process each year. If you’re facing financial difficulties, having a clear understanding of your options and how your equity can help is crucial. Equity can act as a financial cushion that can be used during unexpected challenges or unforeseen circumstances that may disrupt your ability to make mortgage payments on time.

In an article, Freddie Mac explains it this way:

“If exiting your home is the best option for you, selling with equity may be a good option. When selling with equity, you are using the proceeds from selling your home at a higher price than the amount you owe on your mortgage to pay off your remaining mortgage debt.”

Bottom Line

Your equity can be a game changer in reinvesting in your needs, pursuing your goals, and even helping you avoid foreclosure during difficult times. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.

Home Maintenance • August 1, 2023

August Home Maintenance Checklist

by Ellen Kirchdoerfer

It’s August! The year to going by so fast! The August Home Maintenance Checklist is a list of maintenance items to start preparing for the shift in seasons. After completing this short list, treat yourself to a relaxing country drive.

August Home Maintenance Checklist

Let’s get started on this month’s checklist…

Check Furnace Filters / Change If Needed
Test Garage Door Auto-Reverse
Check for Signs of Ants and Other Insects
Clean Garbage Disposal
Treat Septic Tank
Clean Range Hood & Filter

It’s that time of year! The little creatures start moving around. Call your pest control provider to check for signs of ants and other insects. While they are inspecting around your home, they will spray to create a barrier between indoors and outdoors to stop the insects from coming in. No one wants to see insects inside!

With the August Home Maintenance Checklist, we want to make sure the garage door is functioning properly. Check the garage door auto-reverse is a quick and simple way to know your door will operate safely when children are around. Check to make sure the door sensors to picking up activity when the door is going down. Also, place an obstacle on the ground to make sure the door will release when it encounters something on the ground. It is better to check these functions BEFORE there is an emergency need for it to work. Here are some additional tips for testing the garage door auto-reverse safety feature.

Just in case you missed July, you can find it here.

So there you have it, Cape County! A few August home maintenance tasks to keep your home running smoothly all year long.

Buying A Home • July 28, 2023

Owning Your Home Helps You Build Wealth

by Ellen Kirchdoerfer

You may have heard some people say it’s better to rent than buy a home right now. But, even today, there are lots of good reasons to become a homeowner. One of them is that owning a home is typically viewed as a good long-term investment that helps your net worth grow over time. Let’s look at how owning your home helps you build wealth.

Owning Your Home Helps You Build Wealth Regardless of Income Level

You may be surprised to learn homeowners across various income levels have a much higher net worth than renters who make the same amount. Data from First American helps illustrate this point (see graph below):

What makes wealth so much higher for homeowners? A recent article from Realtor.com says:

“Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”

Basically, the wealth you accumulate when you own a home has a lot to do with equity. As a homeowner, equity is built up as you pay down your loan and as home prices appreciate over time. Mark Fleming, Chief Economist at First American, explains how this same benefit isn’t true for renters in a recent podcast:

“Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”

Before you decide to sign another rental agreement, now is a good time to think about whether it would be better for you to buy a home instead. The best way to figure out what makes sense for you is to have a conversation with a real estate professional you trust. That professional can talk you through the benefits that come with owning to determine if that’s the right next step for you.

Bottom Line

If you’re not sure whether to keep renting or buying a home, know that owning a home, no matter how much money you make, can help build your wealth. Let’s connect now to get started on the path to homeownership.

Resources

More resources for your homeownership journey:

Buying A Home • May 26, 2023

It May Be Time To Consider New Home Construction

by Ellen Kirchdoerfer

If you’re looking to buy a house, you may find today’s limited supply of homes available for sale challenging. When housing inventory is as low as it is right now, it can feel like a bit of an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you need to open up your pool of options, it may be time to consider a new home construction.

According to the latest data from the U.S. Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find:

More new homes were completed and are ready to sell. This gives you more move-in-ready options for your search.
Builders broke ground and started construction on more single-family homes. This means there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking.
The number of permits for building new single-family homes ticked up. This shows builders are ramping up to start on even more home construction soon.

Benefits of New Home Construction

And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.

Customization

When you buy a new home under construction, you can tailor it to your unique needs and taste. Bankrate says:

“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.”

Brand New Everything

Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.

Minimal Repairs

And, because everything is new, you’ll likely find there are fewer maintenance and repair needs up front. As Realtor.com explains:

“. . . if something does go wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”

Energy Efficiency

Lastly, building a home gives you the opportunity to incorporate more energy-efficient options that can help lower your costs over time – which can feel especially important when inflation’s raising many of the costs around you.

Bottom Line

If you’re having trouble finding your dream home in today’s market, it may be time to consider new home construction as an option. Let’s connect so you have an expert on your side to help you explore what’s available in our local area.

Resources

More resources for your homeownership journey:

Finance • May 19, 2023

Estate Planning To Secure Your Legacy

by Ellen Kirchdoerfer

Estate planning is often overlooked or delayed, as contemplating our own mortality can be uncomfortable. However, understanding the crucial role of estate planning is essential for ensuring a smooth transition of assets, protecting loved ones, and preserving your legacy. By taking proactive measures, you can alleviate potential burdens and create a secure future for yourself and generations to come.

Estate Planning To Secure Your Legacy

Preserving Wealth and Assets: Estate planning allows individuals to dictate how their wealth and assets will be distributed after their passing. By creating a comprehensive plan, you can ensure that your loved ones receive their intended inheritances, minimizing potential conflicts and legal disputes. From properties and investments to personal belongings and sentimental heirlooms, estate planning safeguards your hard-earned assets and helps you leave a lasting legacy.
Protecting Loved Ones: Estate planning is not solely about finances; it also addresses crucial matters such as guardianship for minor children and care for dependents with special needs. By appointing guardians and establishing trusts, you can ensure that your children are cared for by individuals you trust and that their financial well-being is secure. Additionally, estate planning allows you to plan for unforeseen circumstances, such as incapacity, by designating healthcare proxies and granting powers of attorney.
Minimizing Tax Burdens: One of the key advantages of estate planning is the opportunity to minimize tax liabilities for your heirs. Through strategic planning, you can take advantage of various tax-saving strategies, such as gifting, charitable donations, and trust structures. These measures can significantly reduce estate taxes and maximize the amount passed on to your beneficiaries, providing them with a more substantial financial foundation.

Secure Your Legacy

Estate planning to secure your legacy is an indispensable process that ensures the smooth transfer of assets, protects loved ones, and minimizes tax burdens. By taking the time to create a well-thought-out estate plan, you can enjoy peace of mind knowing that your wishes will be carried out, your loved ones will be taken care of, and your legacy will endure for generations to come. Start the estate planning process today to secure a prosperous and organized future.

Resources

Thinking about retirement? Here are some helpful resources:

Events • Outdoors • Shopping • April 28, 2023

Farmers Markets Around Cape County

by Ellen Kirchdoerfer

Looking for fresh produce without all the work of gardening? Farmers’ Markets Around Cape County is the Answer!

We are lucky in this area to have several choices of Farmers’ Markets and can find one most days of the week. Each offers its own unique options of produce, prepared foods, drinks, and even entertainment.

Here are some markets we enjoy from May to October in 2023…

Farmers Markets Around Cape County

Cape Riverfront Market @ Downtown Cape Girardeau. Every Saturday from 8:00 a.m. – Noon you will find large gatherings of people buying produce, and enjoying food and drink while listening to the tunes of a live band. This Farmers’ Market is a must-visit in Downtown Cape Girardeau at 35 S. Spanish Street.
Jackson Farmers Market @ St. Louis Iron Mountain Railroad (252 E. Jackson Blvd, Jackson). Stop by on Tuesdays from 11:00 am to 4:00 pm each week for a good variety of produce, fresh baked goods, eggs, handmade crafts, and soooo much more!
Cape Farmers’ Market @ West Park Mall (Mt. Auburn Entrance). Lots of options at this market on Thursdays from 10:00 a.m. – 3:00 p.m.
Chaffee Downtown Farmer’s Market @ 127 W. Yoakum Ave, Chaffee. Four hours of shopping fun beginning on Saturdays at 8:30 a.m. to 12:30 p.m.
Bollinger County Farmers Market @ 104 Sample St., Marble Hill takes it to the next level with hand-crafted goods and even live animal sales (chicks, bunnies, etc.). Stop by on Saturdays from 8:00 a.m. to Noonish.
Farmers Market hosted by Cruisin Uptown Jackson and City of Jackson Community Outready Board is held in Uptown Jackson, MO. This new market was added for the 2023 season and will be open the 2nd Saturday of each month from 5:00 p.m. to 8:00 p.m. Check out the vehicles on display, shop the farmers market and enjoy the live music for a fun evening!

Let us know below why you enjoy shopping at local Farmer’s Markets.

Do you have a Farmer’s Market to add? Drop a comment below so we can add your market to our list!

Don’t feel like cooking the yummy produce bought at the market today? Here are some dining options to choose from:

Buying A Home • April 27, 2023

Three Factors Affecting Home Affordability Today

by Ellen Kirchdoerfer

There’s been a lot of focus on higher mortgage rates and how they’re creating affordability challenges for today’s homebuyers. It’s true that rates climbed dramatically since the record-low we saw during the pandemic. But home affordability is based on more than just mortgage rates – here are three factors affecting home affordability today.

Considering how each one of these factors is changing gives you the full picture of home affordability today. Here’s the latest.

Three Factors Affecting Home Affordability Today

1. Mortgage Rates

While mortgage rates are higher than they were a year ago, they’ve hovered primarily between 6% and 7% for nearly eight months now (see graph below):

As the graph shows, mortgage rates have experienced some volatility during that time. And even a small change in mortgage rates impacts your purchasing power. That’s why it’s so important to lean on your team of real estate professionals for expert advice to stay up to date on what’s happening in the market. While it’s hard to project where mortgage rates will go from here, many experts agree they’ll likely continue to remain around 6%-7% in the immediate future.

2. Home Prices

Over the past few years, home prices appreciated rapidly as the record-low mortgage rates we saw during the pandemic led to a surge in buyer demand. The heightened buyer demand happened while the supply of homes for sale was at record lows, and that imbalance put upward pressure on home prices. However, today’s higher mortgage rates have slowed down price appreciation.

And, the truth is, home price appreciation varies by market. Some areas are seeing slight declines while others have prices that are climbing. As Selma Hepp, Chief Economist at CoreLogic, explains:

“The divergence in home price changes across the U.S. reflects a tale of two housing markets. Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply. The consistent gains in the Southeast and South reflect strong job markets, in-migration patterns and relative affordability due to new home construction.”

To find out what’s happening with prices in your local market, reach out to a trusted real estate agent.

3. Wages

The most positive factor in affordability right now is rising income. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have grown over time:

Higher wages improve affordability because they reduce the percentage of your income it takes to pay your mortgage since you don’t have to put as much of your paycheck toward your monthly housing cost.

Home affordability comes down to a combination of rates, prices, and wages. If you have questions or want to learn more, reach out to a real estate professional who can explain what’s happening locally and how these factors work together.

Bottom Line

If you’re planning to buy a home, knowing the key factors that impact affordability is important so you can make an informed decision. To stay up to date on the latest on each, let’s connect today.

Resources

More resources for your homeownership journey: