February 2024

How Changing Mortgage Rates Impact You [INFOGRAPHIC]

Some Highlights
* If you’re looking to buy a home, it’s important to know how mortgage
rates impact what you can afford and how much you’ll pay each month.

* That’s because even a small change in mortgage rates can have a big
impact on your purchasing power.

* The best way to navigate changing mortgage rates and make an
informed buying decision is to rely on the expertise of a local real
estate professional and mortgage lender.

Every year like clockwork, thousands of people flock down south to enjoy the warmer weather and get away from the cold. Affectionately dubbed “snowbirds,” they’re mostly retirees that come from the northern parts of the U.S. This seasonal migration is driven by the simple desire for the sunnier skies and warmer temperatures of Florida. If you’re ready to direct these seasonal travelers to your doorstep, the key is understanding how to market it effectively. When done appropriately, you can catch the eye of these winter wanderers and ultimately book it up for the season. Preparing Your Vacation Rental ProperlyBy 2028, online sales will account for 76% of the vacation rental market. With more snowbirds journeying southward, they’re seeking more than a change in latitude — they want a home away from home. After traveling great distances, the warm embrace of a thoughtfully prepared vacation rental can make all the difference in their winter retreat. It’s essential to ensure your space exceeds their expectations, making their stay comfortable, convenient and memorable.To connect with snowbirds, consider your rental from their perspective. What amenities would transform a nice stay into an exceptional one? Think beyond the basics. From high-speed internet and smart TVs to a fully equipped kitchen and comfortable outdoor spaces to enjoy the Florida sun are just the start. Additionally, consider accessibility features that cater to retirees, ensuring your property is welcoming to all. To guarantee your rental is stocked with top-of-the-line amenities, consider creating a checklist that includes the following:High-speed Wi-FiSmart TVs with cable or streaming service accessStocked kitchen with basic cooking ingredientsComfortable, high-quality beddingAccessible bathroom featuresOutdoor seating areaLocal guides and mapsContact list for local services, such as health care and grocery delivery1. Highlight the Right FeaturesWhen marketing your property to snowbirds, the right thing to do is to show off the property’s features that matter most. Remember, these winter visitors are looking for more than a place to stay — they seek comfort and joy in a seasonal home. Focus on showcasing aspects of your property that enhance their winter escape, such as its proximity to local attractions, beaches or golf courses. Also, remember to emphasize convenience and comfort through aspects such as:A well-maintained gardenA cozy patioA view that captures the essence of Florida’s beautyWhen you highlight these features in your marketing materials, you’ll be sure to grab their attention while helping them picture your property as the perfect winter retreat.2. Optimize Your Listing for Online PlatformsOptimizing your listing is crucial in attracting snowbirds to your property. An online listing is typically the first touchpoint with renters, as they’re most likely to use search to find a vacation home. To ensure potential guests see your listing, use keywords in the title and its description. The title should describe your rental and compel them to click for more.The description should also detail a thorough explanation of your property. It must include details that emphasize features that appeal to snowbirds, including the layout, accessibility and comforts. The purpose of the description is to make your property sound ideal enough for a lengthy stay. Yet, it should do more than describe the features — it must help the traveler envision themselves in the home. For instance, you could convey the patio as the perfect way to enjoy the sunrise and a morning coffee. Then, you should always include a call-to-action that shows the potential guest what to do next, so ensure you have a “Book Now” button.3. Leverage Social Media MarketingAnother way to attract snowbirds to your property is with the use of social media. Platforms like Facebook, Instagram and Pinterest can showcase it with captivating photos and videos. Each post should highlight the amenities that are most attractive and appealing to snowbirds.It also helps to use engaging stories that weave a narrative around local attractions and the tranquility awaiting them. Through the use of stories, you can coax potential renters and ensure your property stands out among a sea of other choices.Targeted ads are also beneficial for increasing your reach. You can use settings to target your audience based on filters like age, interests, location and more. With the clever use of targeted advertising, you can make the most of your ad budget and attract snowbirds to your winter haven.4. Start a Vacation Rental BlogA vacation rental blog is a smart way to captivate snowbirds. By sharing insights about local life, you give potential renters a taste of what living in your property could be like. When you incorporate stories and expertise into your blog posts, snowbirds will appreciate the helpful tips you provide. You can make it sound like a destination to experience, enhancing your property’s appeal. Offering value beyond the walls of your rental establishes you as a knowledgeable host passionate about giving guests an unforgettable stay. Plus, a blog can boost your property’s visibility and attract a dedicated following of snowbirds looking for the perfect place.5. Offer Flexible Rental TermsSnowbirds have needs that often differ from typical short-term rentals. Many of them seek longer stays to escape the winter months, making traditional one-week or one-month rental periods less appealing.Consider adjusting your vacation rental strategy to accommodate three- to six-month stays, which is what the snowbird demographic mostly prefers. Offering extended stays can make your property more appealing to snowbirds and increase their likelihood of booking through you. Additionally, consider implementing adjustable pricing models or special rates for extended stays. With these enticing offers, you can encourage longer bookings and ensure a steady occupancy rate throughout the season.6. Provide Unique OffersConsider offering unique incentives to make your property even more attractive. For instance, you could craft membership packages that offer discounts on local attractions like restaurants or golf courses. This strategy works for catering to a snowbird’s social lifestyle they want to experience within their community.An easy way to secure these deals is by partnering with local businesses. These relationships will be crucial in appealing to snowbirds looking for an immersive and cost-effective winter escape. Plus, it’ll make you seem like a thoughtful and connected host, positioning your property for increased potential.Attracting Snowbirds to Your PropertyMarketing your property to snowbirds takes several strategies to make it appealing. Yet, remember the importance of personal touch. Once you truly understand what your target audience wants in a vacation rental property, you can make your guests feel welcome. Whether it’s through personalized welcome baskets or personally created local guidebooks, small gestures make a big impact. Think of it as more than a transaction but creating a memorable experience instead. Doing so will keep snowbirds returning year after year.

Sellers interested in listing their homes have one thing in mind — getting a solid home offer. Of course, this means their homes need to appeal to buyers. Home staging has become standard in the selling process. You can showcase your home’s potential by rearranging and swapping out furniture, making minor home improvements, deep cleaning and creating a space where buyers can see themselves living. Sellers might hesitate to hire a staging company for various reasons and you may get away with doing it yourself. So, is home staging really worth it if you want to sell your house? Here’s a closer look at the advantages, downsides and possible DIY alternatives.What Are the Benefits of Staging a Home?Home staging is a marketing strategy to showcase the best parts of your home to prospective buyers. It entails refitting your space — furniture, art and other decorative pieces — to elevate your house, create greater functionality and highlight its strengths. Professional stagers may use some of the furniture you already have or bring in their own. The biggest advantage is a higher market value. According to the National Association of Realtors, buyers offered a 1%-5% higher dollar value for homes with staging compared to those without. Twenty-seven percent of seller’s agents say homes spend less time for sale when staged well.Professional stagers know what buyers want, paying close attention to the latest trends. For instance, there’s been a 144% increase in Google searches for “English country kitchens” in 2024. As such, stagers might highlight warm metallics, rustic finishes and natural wood.Additional benefits of home staging include:Broadening your home’s appeal to numerous buyer preferences.Making rooms look and feel more spacious than they are.Creating a more inviting, comfortable atmosphere.Helping modernize your decor to today’s design standards.Depersonalizing your home without making it look not-lived-in.Professional home staging also improves high-quality listing photos. Considering most buyers shop for homes online, you want your home’s pictures to be as visually appealing as possible to draw people in.Costs of Home StagingStaging your home isn’t without costs. You might pay anywhere from $782-$2,841 for staging services without the expense of renting furniture. Suppose you need to rent furniture at $1,500 for five months until you sell — it’ll cost you over $7,500 with the service fees. There may be additional expenses for add-ons, such as repainting certain areas or professional photography. Some companies may charge you for outdoor staging, too.There are no guarantees staging will help you sell your home quickly and at a higher price than you’re asking. As a result, many homeowners hesitate to spend so much money on staging. Possible Drawbacks of Staging Your HomeWhile staging your home could benefit you, some drawbacks exist. Aside from the cost, homeowners have to do their part to declutter, deep clean and repair anything broken. Staging may also bring out wide-ranging emotions during the selling process. Living among furniture and artwork you don’t own could make you feel detached from your space before you’re ready. Likewise, you might feel insulted your design choices aren’t up to par with buyers’ preferences. Of course, staging is nothing personal against you — you only want your home to appeal to the masses. Additionally, you must maintain your staged home, ensuring it remains pristine until you sell. This is often stressful for sellers with young families and busy schedules. Setting aside time each evening to tidy up from the day ensures your home is ready for the next round of potential buyers. Also, a once-over before you leave for work ensures the pillows are perfectly fluffed, linens aren’t crinkled and things are in the right place.What to Consider Before Investing in Home StagingThere’s much weighing on your decision to stage your home to sell. The potential to earn a higher return on investment is always there — but without guarantees, you might wonder if it’s worth hiring professionals to do it right.Ask yourself the following questions to determine if home staging is the best option for you as you prepare to sell your house:What is your budget and can you afford to hire a home stager?What is your timeline for moving? Do you have a window to get a home staging company into your house?What are the current market conditions?Does your style align with today’s buyers’ preferences?If you’re unsure whether to pursue professional home staging services, speak directly with your realtor or a staging company. They can offer insights for making a sounder decision. How to DIY Home StagingHiring a professional is always your best chance at reaping the benefits of home staging. However, there are several minor adjustments you can make to your house on your own to improve your selling experience, such as the following:Putting away some of your personal effects and decluttering surfacesRemoving bulkier furniture pieces Optimizing lighting, including natural lightHanging mirrors in smaller rooms for the illusion of a bigger spaceAdd some greenery or floralsIncorporate fresh linens in the bedrooms and bathroomsReplace dirty welcome mats, bathroom mats, runners and throw rugsPainting dark walls a lighter, neutral colorAccording to a 2022 Zillow survey, 27% of homeowners paint before listing their home, while 74% agree these improvements help them sell.Ultimately, you want your home to shine. Buyers will notice if you deep clean the entire house, including vents, fans and millwork. Finding ways to create roominess in tight places, removing stains and scratches and eliminating foul odors are other ways to prepare your home to sell.Is Staging Your Home the Right Move?Home staging is always a good idea if you plan to sell your house. However, whether you hire a professional staging company or choose to stage it yourself is something to consider. Inquiring with experts and factoring in budget and market trends is essential to making the right choice. At the end of the day, you want the biggest bang for your buck.

Owning real estate means committing to the property and everything that comes with it over the long term. Properties come in all shapes, sizes and price ranges. There is much to consider and a lot on the line, so getting it right from the start is essential.If this is your first time venturing into buying or investing in a house, it’s normal to feel overwhelmed by the process. Here’s what you should know. Determining Which Property to Buy or Invest InOnce you’ve decided to own real estate, the first step is determining what property is best for you. This involves doing some research to understand what drives the housing market relative to the current state of the economy. For example, supply and demand dynamics determine what properties are available and how much you’ll likely pay. Having established availability, you must evaluate other critical considerations. Location Check out the area where the house is located. What’s the neighborhood like? What is the condition of the other properties on the street? Are there public amenities like schools and hospitals nearby? Researching the location gives you a good idea of the type of area you’re buying into, as well as an indication of the house’s potential. If you’re investing, consider the property in context. A spectacular vacation home in an area people hardly visit will not have good returns. Remember, there’s a lot you can do to improve the property itself, but you can’t improve the location. Pros and Cons of Different Home Types Different types of properties suit buyers with various lifestyles. Picking the right house can be as important as choosing the best location. You’ll need to weigh the advantages and drawbacks unique to each property type. For example, a condo might have pet restrictions or limited parking compared to a townhouse. Some properties are more expensive than others, so it also depends on your financial capacity. Consider these questions to help you make an informed decision: How much space do I need? Single and multifamily homes are your best bets if you need a property with lots of room to accommodate a growing family. Do I want the freedom to renovate? Generally, you have much more flexibility to spruce up a single-family house than other residential properties. Apartments and condos might be the most difficult to personalize as the rules tend to be stricter. Am I willing to pay additional fees? Depending on the HOA regulations in co-ops, condos and townhouses, you might have to pay a monthly fee to cover services like landscaping, garbage disposal, playground maintenance and other amenities. Will I want to refinance in the future? Refinancing lets you take advantage of lower interest rates, which translates into lower mortgage payments. Co-op properties are typically more challenging to refinance as they require additional steps, such as obtaining approval from the board and finding a lender that offers co-op refinance loans. Property ValuationBefore purchasing a house, you must ascertain its actual market value. This ensures you’re paying a fair price for the property. Different valuation methods are available, but the most common revolves around comparing the sales of properties with similar characteristics in the area. This provides a suitable benchmark for assessing how much homes go for in that location.Current ConditionEvaluate the condition of the property you want to purchase. Search for homes that look like they’ve been well-maintained over the years so you can save on maintenance and repair costs down the road. You’re more likely to get tenants if you plan on renting out the property, as most people don’t want a run-down house. However, if you’re looking to buy a property to flip, a home in poor condition makes more sense. Similarly, you might be in the market for a fixer-upper. In these instances, assessing how much work is required to restore the house to a livable condition is important. The 1% RuleThis rule only applies to properties that you buy for the sole purpose of making rental income. It considers the upfront purchase cost, including repair or renovation expenses, and calculates 1% of the figure to determine the estimated rent. Can you charge renters that amount in that area? If yes, then the property will likely be a good investment. If not, there’s no reason to dig any deeper.Decide on Property Ownership The next step is to decide on the proprietorship details. This is an important consideration because it determines who takes over the property if the owner passes away or cannot handle the responsibilities. There are different types of real estate ownership, each with unique characteristics. For example, tenancy by entireties is only available to married couples, whereas joint tenancy allows two or more individuals to share a unified interest in the property. Take the time to understand the available options and select the one best suited for your situation. Financing Your Real Estate PurchaseBuying a property is a significant investment and vital to determine how much house you can afford before diving into the real estate market. Your credit score, debt-to-income ratio and how much down payment you can put up will determine your financial readiness. For instance, taking out a conventional mortgage requires at least a 3% down payment and a minimum 620 credit score. However, anything less than 20% will incur private mortgage insurance. The type of property can also determine what kind of financing to choose. For example, you can only use an FHA loan for primary residence purchases. If you want to buy an investment property or vacation home, you’re better off obtaining a jumbo loan. Of course, you can always pay in cash if you have the liquidity. Mortgage debt in the U.S. reached over $11 trillion as of 2022. Cash is the way to go if you don’t want to worry about making loan repayments or monitoring interest rates.  Lastly, consider the ongoing costs of owning real estate. These include property taxes, maintenance expenses, utilities, HOA dues and more. Include these in your budget and ensure your finances are healthy enough to carry them. Choose the Right Property for YouIt takes a lot of research to select the ideal real estate to buy or invest in. You can find a house that meets your expectations and preferences by considering factors like location, property valuation and financial readiness.