Homeowners' 5 Biggest Remodeling Regrets

Remodeling any aspect of a home can be a big job and a lot can go wrong when owners aren’t adequately prepared. Houzz, a home remodeling website, asked a panel of renovating experts the most common remodeling blunders they see. Here are a few of their responses.

Not budgeting properly.

Underestimating the costs of a project can be a dire mistake that could leave homeowners either with an unfinished property or having to incur a financial loss. Have a detailed budget so you don’t run out of money. Remodeling experts advise always including a 10% to 20% buffer in the budget for any unexpected costs when tackling a remodel.

Assuming DIY will save you money.

Remodeling experts call it the “DIY trap,” and rookie remodelers are especially prone to it. It’s not always cheaper to do a project yourself. It may not look right and could take triple the amount of time to complete than if you would have just hired a pro. “Limit your DIY tasks to things such as painting and simple landscaping jobs, and dedicate your time to project managing the renovation,” experts told Houzz.

Selecting the cheapest contractor.

Another common pitfall is to go with the cheapest quote from a contractor. You don’t want to have to redo poor work. Don’t just focus on the affordability of a contractor’s quote but evaluate fully what it specifies, experts recommend. Gather quotes from at least three contractors and compare them in detail. Also, evaluate the quality of their work through project photos and professional recommendations.

Failing to describe what you want accurately.

Know exactly what you want before you start and use the right words to describe it. Create idea books; search online for ideas online or in magazines; and have a specific list of layouts and finishes you desire. Become familiar with the proper terminology of those looks and finishes so you communicate them correctly to the pros, the experts recommend.

Not researching the material options.

In the same regard, choosing materials often requires some homework. Builders or contractors may fall back on the same materials they always use, but that doesn’t always mean those are right for the project. “Spend time researching the various materials options available—including looks, price, pros and cons, sustainability, durability, and which ones are best suited to your location, and take this information to your builder,” Houzz notes. “Armed with this knowledge, you can decide together the most suitable materials and finishes for your project.”

View more common remodeling mistakes at Houzz.com.

Source: “10 Biggest Remodeling Regrets and How to Avoid Them,” Houzz.com (March 10, 2020)

2020 Homebuying Checklist

Some Highlights:

If you’re thinking of buying a home, plan ahead and stay on the right track, starting with pre-approval.

Being proactive about the homebuying process will help set you up for success in each step.

Make sure to work with a trusted real estate professional along the way, to help guide you through the homebuying steps specific to your area.

Top Renovations for Maximum Return on Investment

Some Highlights:

• If you’re planning on selling your house in 2020, these are the top renovations that will give you the highest Return on your Investment.

• Regardless of how long you’re planning on staying in your current home, it’s smart to be aware of which home renovations add the most value.

• The exterior of a house is the first thing buyers see when searching for a home. Upgrading your roof or siding will ensure your home leaves a great first impression!

Get Your House Ready To Sell This Winter

Some Highlights

• Winter is a great time to list a house, since inventory is traditionally low, and most sellers are holding off until spring to put their homes on the market.

• Waiting for warmer weather when more competition is on the market will only put your house up against many more choices for buyers.

• Get your house ready to sell now with quick and easy fixes that make a big impact.

The Current 5 Most Popular Real Estate Questions and Answers

1. Are Mortgage Rates Going to Go Up?

With the price of homes going up due to a strong economy and high demand, mortgage rates are helping to balance it all out by keeping things affordable.

Essentially, the lower your mortgage rate, the lower your monthly payments.

With Freddie Mac predicting that mortgage rates should stay where they are for the next 12 months, this shouldn’t be changing anytime soon.

2. Is Now a Good Time to Buy or Sell?

The short answer is: yes and yes.

As said above, low mortgage rates mean it’s a great time for anyone to buy: whether it’s for the first, second or fifth time. This is especially true for someone looking to upgrade their home and purchase one in a higher bracket.

The low mortgage rate will help you afford more house at a lower monthly payment.

Combine that with low inventory and high demand, and you have an equally good seller’s market. This goes especially for homes in the low to mid-range.

3. Are Home Prices Going to Keep Rising?

Data from the leading experts in real estate and mortgage lending says yes.

But before anyone panics, that means now is the best time to buy and sell.

With mortgage rates expecting to stay where they are and an anticipated 3.5-5% price appreciation happening in the next year, this is without a doubt the best time to buy.

Waiting only means one thing: spending more for the same house.

Take a look at our price appreciation slide so you can show them the facts to back it up.

4. Do I Need to Update My Home Before I Sell It?

Making updates could mean a higher asking price. It could also mean investment loss.

Depending on the type of updates needed, the market’s current low inventory levels put any home that hits the market in a good position to sell. Yes, some homeowners prefer to buy a “turn-key” home. On the flip side, others may want to make the updates themselves, so everything is to their taste.

Check out this post on which updates have the highest return on investment.

5. Is a Recession Going to Cause Home Prices to Fall?

Yes, it’s very likely a recession will hit either next year or the year after. However, this in no way means a housing market catastrophe like the one that occurred in 2008.

Here’s why:

-Of the last five recessions, only two saw a decline in home values with three seeing increases.
-The two that saw declines were in 1991 (-1.9%) and of course, 2008 (-19.7%).
-The current market does not remotely resemble the one before the 2008 crash.
-The top causes for the next recession have nothing to do with the housing market, unlike that of 2008 when risky borrowing led to a bubble that was bound to burst.

Is Your House "Priced to Sell Immediately?"

In today’s real estate market, more houses are coming to market every day. Eager buyers are searching for their dream homes, so setting the right price for your house is one of the most important things you can do.

According to CoreLogic’s latest Home Price Index, home values have risen at over 6% a year over the past two years, but have started to slow to 3.6% over the last 12 months. By this time next year, CoreLogic predicts home values will be 5.4% higher.

With prices slowing from their previous pace, homeowners must realize that pricing their homes a little over market value to leave room for negotiation will actually dramatically decrease the number of buyers who will see their listing (see the chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so demand for the home is maximized. By doing so, the seller will not be negotiating with a buyer over the price, but will instead have multiple buyers competing with each other over the house.

The secret is making sure your house is Priced To Sell Immediately (PTSI). That way, your home will be seen by the most potential buyers. It will sell at a great price before more competition comes to the market.

Bottom Line

If you’re debating listing your house for sale, reach out to a local real estate professional to discuss how to price your home appropriately and maximize your exposure.

Homeownership Equity Reaches All-Time-High in Q2

BY: JANN SWANSON

Total home equity, not surprisingly, increased again in the second quarter of the year.  CoreLogic's quarterly Homeowner Equity Insights report, which looks only at properties with one or more mortgages, puts the aggregate increase at $428 billion year-over-year, a 4.8 percent gain.   The company says that 63 percent of residential properties have a mortgage.

"Home values have continued to rise in most parts of the country this year and we are seeing the benefit in higher home equity levels. The western half of the U.S. has experienced particularly strong gains in home equity recently," according to CoreLogic CEO and President Frank Martell. In July 2019, South Dakota and Connecticut were the only two states to post annual home price declines. These losses mirror the states' home equity performances during the second quarter as both reported negative home equity gains per borrower."

The number of mortgage properties that were underwater, owning more on the mortgage or mortgages than the property is worth, totaled 2 million homes or 3.8 percent of all mortgaged properties. This is 151,000 fewer underwater properties (a 9 percent decrease) from the second quarter 2018 total.  At that time the negative equity rate was 4.3 percent.

Frank Nothaft, CoreLogic Chief Economist, said "Borrower equity rose to an all-time high in the first half of 2019 and has more than doubled since the housing recovery started. Combined with low mortgage rates, this rise in home equity supports spending on home improvements and may help improve balance sheets of households who could take out home equity loans to consolidate their debt."

Negative equity at the end of the second quarter of 2019 had an aggregate value of approximately $302.7 billion. This is down quarter over quarter by approximately $2.6 billion, from $305.3 billion in the first quarter of this year.

Negative equity peaked at 26 percent of mortgaged residential properties in the fourth quarter of 2009, based on the CoreLogic equity data analysis which began in the third quarter of 2009.

When broken down by household, the aggregate increase in equity averages a gain of $4,900 since the end of Q2 2018. Idaho had the highest year-over-year average increase at $22,100.

2018's Home Sales Slump Now Fully Erased

BY: JANN SWANSON

While the increase wasn't as strong as in July, last month's existing home sales posted a second straight month of gains and, as previously, the National Association of Realtors® (NAR) credited falling interest rates.  Sales of previously owned single-family houses, townhouses, condominiums, and cooperative apartments were up 1.3 percent compared to July when sales rose 2.5 percent.  The seasonally adjusted annual rate of 5.49 million units was 2.6 percent higher than the August 2018 pace of 5.35 million. The increase was felt in three of the four major regions while the West continues to demonstrate some weakness.

The month's results were better than predicted.  Analysts polled by Econoday had expected them to come in at an annual rate of 5.30 to 5.42 million with a consensus of 5.38 million.

Single-family home sales rose from 4.84 million in July to 4.90 million in August, a 1.2 percent gain and 2.9 percent above the August 2018 rate. Existing condo sales rose 1.7 percent from July to 590,000 annual units, largely unchanged from the previous August.

Lawrence Yun, NAR's chief economist, said, "As expected, buyers are finding it hard to resist the current rates. The desire to take advantage of these promising conditions is leading more buyers to the market."

The median existing home price for all housing types in August was $278,200, up 4.7 percent from the median a year earlier of $265,600.  It was the 90th straight month of year-over-year gains. The median existing single-family home price also rose 4.7 percent to $280,700.  Condo prices were up 5.2 percent to a median of $257,600 in August.

"Sales are up, but inventory numbers remain low and are thereby pushing up home prices," said Yun. "Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income."

Inventory fell in August, down from 1.90 million available homes to 1.86 million and 2.6 percent fewer homes than a year earlier. Unsold inventory is at a 4.1-month supply at the current sales pace, down from 4.2 months in July and from the 4.3-month figure recorded in August 2018. Properties typically remained on the market for 31 days in August, up from 29 days in both July and the prior August. Forty-nine percent of homes sold in August were on the market for less than a month.

Yun criticized the quarter point cut in the Fed Funds rate made by the Federal Reserve on Wednesday.  "[The Fed] should have been bolder and made a deeper rate cut, given current low inflation rates," he said. "The housing sector has been broadly underperforming but there is huge upward potential there that will help our overall economy grow."

First-time buyers were responsible for 31 percent of sales in August, the same as a year and investors and second home buyers accounted for 14 percent, up from 11 percent in July.  All-cash sales accounted for 19 percent of transactions in August, about equal to July and moderately below August 2018. Distressed sales remained negligible, representing 2 percent of August sales, a 1-point decline from a year earlier.

 "Rates continue to be historically low, which is extremely beneficial for everyone buying or selling a home," said NAR President John Smaby. "The new [FHA] condominium loan policies, as well as other reforms NAR is pursuing within our housing finance system, will allow even more families and individuals in this country to reach the American Dream of homeownership."

There were month-over-month increases in existing home sales in the Northeast, Midwest, and South and sales in all four regions bested their 2018 numbers. Sales in the Northeast increased 7.6 percent from July to an annual rate of 710,000 units, 1.4 percent higher than in August 2018. The median price fell 0.3 percent on an annual basis to $303,500.

Existing-home sales grew 3.1 percent in the Midwest to an annual rate of 1.31 million, topping sales from a year earlier by 2.3 percent.  The median price jumped 6.6 percent to $220,000.

In the South there was a gain of 0.9 percent in sales to a rate of 2.33 million and sales were 3.6 percent higher year-over-year. The median price of $240,300 was a 5.4 percent annual increase.

While sales remained 1.8 percent higher on an annual basis, the West was an outlier in August. Existing home sales declined 3.4 percent to 1.14 million. Prices, however, continued their strong appreciation, rising 5.7 percent to $415,900.

The Fed and Mortgage Rates

One of the greatest potential sources of confusion for prospective mortgage borrowers is the relationship between the Fed and mortgage rates.  While the Fed's policy changes absolutely have a big impact on all sorts of interest rates (including mortgages), a drop in the Fed's policy rate DOES NOT result in lower mortgage rates. 

The main reason for confusion is the fact that there's a huge difference from an investment standpoint between a rate that governs the shortest-term transactions (The Fed Funds Rate applies to loans that last for 1 day or less) and a rate that can remain in effect for up to 30 years in the case of mortgages.  Even if we use the average life span of a 30yr fixed mortgage, we're still talking about 5-10 years depending on the broader market landscape. You may have heard about the "inverted yield curve?"  That's a reference to vastly different behavior between longer and shorter term rates, and it stands as evidence of the different sets of concerns that apply to each side of the duration spectrum.  The differences are only more pronounced when we take the shorter end of the spectrum all the way down to the "overnight" level (Fed Funds Rate) and all the way up to the duration of the average mortgage loan.

Beyond the fact that a mortgage rate is very simply a different animal than the Fed Funds Rate, there's also the matter of frequency of movement.  The Fed only meets to potentially change rates 8 times a year.  Mortgage rates change every day--sometimes more than once.  And the bond markets that underlie mortgage rates change thousands of times per day.  That means the mortgage market can easily and quickly get into position for any expected move from the Fed.  In today's case, where the rate cut was seen as highly likely, any effect that the Fed Funds Rate could ever have on mortgage rates was already priced-in weeks ago.

But let's say the first two points don't quite convince you.  The third is irrefutable.  The Fed doesn't just take the stage, cut rates, and go home.  They release a ton of other info and hold a press conference to discuss their present and future policy decisions.  The rates market (for mortgages, Treasuries, and everything else) is tremendously interested in all that "other stuff."  Today, particularly, there was a set of updated forecasts for future rate movements.  These were a bit less market-friendly than the average investor expected.  In addition, market participants interpreted Powell's press conference as being a bit less friendly than expected.

Long story short: there are multiple reasons for mortgage rates to go their own way regardless of the Fed rate cut. 

BY: MATTHEW GRAHAM

What Buyers Need to Know About HOA's

When searching for a home, you may end up selecting a property in a community with a Homeowners Association (HOA). Before you buy, it’s important to know how an HOA works and what they mean for you.

According to a recent article on realtor.com,

“In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly…The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.”

An HOA is governed by a board nominated by those living in the neighborhood. It is designed to make sure the residents have a support structure to maintain the value of the community while abiding by a set of guidelines called Common Restrictive Covenants (CC&R),

“Simply put, CC&Rs are just the rules you’ll have to follow if you live in that community. Unlike zoning regulations, which are government-imposed requirements on how land can be used, restrictive covenants are established by HOAs to maintain the attractiveness and value of the property.”

It’s important for homeowners to understand that each HOA is a little different, and they usually have monthly or quarterly fees required for homeowners. These fees can vary based on property size, number of residents, amenities, and more. There may be additional fees charged to homeowners if the reserve fund for the HOA cannot cover a major or unexpected cost, like severe storm damage.

The fees, however, also help maintain common areas such as swimming pools, tennis courts, elevators (for high-rise buildings), and regular wear and tear. Although they are an added cost to the homeowner, an HOA can be a major benefit when it comes to maintaining the value of your neighborhood and your property.

The same article continues to say,

“After your offer to buy a home is accepted, you are legally entitled to receive and review the community’s CC&Rs over a certain number of days (typically between three and 10)…If you spot anything in the restrictive covenants you absolutely can’t live with, you can bring it up with the HOA board or just back out of your contract completely (and keep your deposit).”

Most lenders will factor your HOA fees into your loan package, ensuring the amount of the loan is appropriate for what you can truly afford.

There are some great benefits to having an HOA oversee your neighborhood, and it’s important to understand what fees, structures, and regulations will come into play if there is an HOA where you’d like to live.

Bottom Line

When you’re looking at a potential property to buy, be sure to work with a professional who can help you understand the neighborhood’s HOA structure and fees. This way, you’ll feel confident and fully informed when buying a home.

6 Graphs Showing the Strength of the Current Housing Market

Some Highlights:

• Keeping an eye on the current status of the housing market is one of the best ways to make powerful and confident decisions when buying or selling a home.

• Mortgage rates remaining near historic lows and houses selling in an average of only 29 days are just two key elements driving the strength of today’s market.

• With the national data shown here, make sure to also determine what’s happening in your local market so you are fully informed when you’re ready to make your next move.

What is the Probability That Homes Values Sink?

With the current uncertainty about the economy triggered by a potential trade war, some people are waiting to purchase their first home or move-up to their dream house because they think or hope home prices will drop over the next few years. However, the experts disagree with this perspective.

Here is a table showing the predicted levels of appreciation from six major housing sources:

As we can see, every source believes home prices will continue to appreciate (albeit at lower levels than we have seen over the last several years). But, not one source is calling for residential real estate values to depreciate.

Additionally, ARCH Mortgage Insurance Company in their current Housing and Mortgage Market Review revealed their latest ARCH Risk Index, which estimates the probability of home prices being lower in two years. There was not one state that even had a moderate probability of home prices lowering. In fact, 34 of the 50 states had a minimal probability.

Bottom Line

Those waiting for prices to fall before purchasing a home should realize that the probability of that happening anytime soon is very low. With mortgage rates already at near historic lows, now may be the time to act.

The Role Access Plays in Getting Your House Sold

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process and you’ve been asked what level of access you want to provide to potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access you can provide to your agent to be able to show your home.

Here are five levels of access you can provide to a buyer, each with a brief description:

• Lockbox on the Door – This allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.

• Providing a Key to the Home – Although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.

• Open Access with a Phone Call – The seller allows showing with just a phone call’s notice.

• By Appointment Only – Example: 48-hour notice. Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.

• Limited Access – Example: the home is only available for a couple of hours a day. This is the most difficult way to be able to show your house to potential buyers.

In a competitive marketplace, access can make or break your ability to get the price you are looking for, or even sell your house at all.

Home Sales Expected to Continue Increasing in 2020.

Freddie Mac, Fannie Mae, and the Mortgage Bankers Association are all projecting home sales will increase nicely in 2020.

Below is a chart depicting the projections of each entity for 2019, as well as for 2020.

As we can see, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association all believe homes sales will increase steadily over the next year. If you’re a homeowner who has considered selling your house recently, now may be the best time to put it on the market.

Price Reduction on this Beautiful Private Rental

Beautiful private home on the east side of the Silverado Trail in St. Helena. Enjoy a covered, private deck with vineyard and valley views. This ensuite 2 bedroom, 2 full bath, unfurnished custom built home on a quiet, private estate is walkable to CIA and a 5 minute drive to downtown St. Helena. One story with hardwood floors, open kitchen concept with built-in gas range and oven, refrigerator, dishwasher, garbage disposal and large great room w/gas wood burning fireplace. Drive right into the attached garage and walk into the mud room with washer and dryer. New interior paint and carpeting in the 2nd bedroom. Renter to pay gas, electric and cable/internet. Water, trash and landscaping included in rent.

Pets are considered.

Now $4,000 per month with a one year lease.

How Property Taxes Can Impact Your Mortgage Payment

When buying a home, taxes are one of the expenses that can make a significant difference in your monthly payment. Do you know how much you might pay for property taxes in your state or local area?

When applying for a mortgage, you’ll see one of two acronyms in your paperwork – P&I or PITI – depending on how you’re including your taxes in your mortgage payment.

P&I stands for Principal and Interest, and both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance, and they’re all important factors to calculate when you want to determine exactly what the cost of your new home will be.

TaxRates.org defines property taxes as,

“A municipal tax levied by counties, cities, or special tax districts on most types of real estate – including homes, businesses, and parcels of land. The amount of property tax owed depends on the appraised fair market value of the property, as determined by the property tax assessor.”

This organization also provides a map showing annual property taxes by state (including the District of Columbia), from lowest to highest, as a percentage of median home value.

The top 5 states with the highest median property taxes are New Jersey, New Hampshire, Texas, Nebraska, and Wisconsin. The states with the lowest median property taxes are Louisiana, Hawaii, Alabama, and Delaware, followed by the District of Columbia.

Bottom Line

Depending on where you live, property taxes can have a big impact on your monthly payment. To make sure your estimated taxes will fall within your desired budget, contact a local real estate professional today to find out how the neighborhood or area you choose can make a difference in your overall costs when buying a home.

Homeownership Will Always Be a Part of the American Dream

On Labor Day we celebrate the hard work that helps us achieve the American Dream.

Growing up, many of us thought about our future lives with great ambition. We drew pictures of what jobs we wanted to have and where we would live as a representation of a secure life for ourselves and our families. Today we celebrate the workers that make this country a place where those dreams can become a reality.

According to Wikipedia,

“Labor Day honors the American labor movement and the contributions that workers have made to the development, growth, endurance, strength, security, prosperity, productivity, laws, sustainability, persistence, structure, and well-being of the country.”

The hard work that happens every day across this country allows so many to achieve the American Dream. The 2019 Aspiring Home Buyers Profile by the National Association of Realtors (NAR) says,

“Approximately 75% of non-homeowners believe homeownership is part of their American Dream, while 9 in 10 current homeowners said the same.”

Looking at the number of non-owners, you may wonder, ‘If they believe in homeownership, why haven’t they bought a home yet?’. Well, increasing home prices and low inventory can be part of the reason why some haven’t jumped in, but that does not mean there is a lack of interest. The same report shows the increase in the desire to buy in the last year (as shown in the graph below):

As we can see, there are more and more people each quarter who want to buy a home. The good news is, as more inventory comes to the market, more non-homeowners will be able to fulfill their dreams. Finally, they’ll be able to move into that home they drew when they were little kids!

Bottom Line

If you’re a homeowner considering selling, this fall might be the right time, as there are buyers in the market ready to buy. Sit down with a local real estate professional to find out how you can benefit from this pent-up housing demand.

3 Things to Think About When Buying a Second Home

Some rich, urban-dwelling millennials are swapping out starter homes for vacation homes: They're renting in cities and buying country houses because they can't afford to buy in their city's expensive real estate market, according to Farran Powell of The Street.

That's certainly not the only reason why people are buying vacation homes, and millennials aren't the only ones to favor them. But buying a second home isn't a decision to be taken lightly.

"It's important to understand that second homes are different," Jean Chatzky, financial editor of NBC's "Today" Show, wrote in " Women with Money," her latest of 11 books.

There are three reasons why one might be considering a vacation home, according to Chatzky. Here's what you should consider before making the leap.

Read more: Millennials are making 3 key decisions that are wiping out the starter home — and it's changing what homeownership in America looks like

1. You want your own space in a place you visit often — but how often do you really visit?

Chatzky and her husband bought a second home in Long Beach Island, New Jersey, which they use every weekend from May through early September.

But even if you'll only use a vacation home part-time like Chatzky does, a house is still a house. Bills — including mortgage, HOA dues, utilities, cable, etc. — are still year-round responsibilities, Chatzky said. If you live far from your second home, you'll also need to pay someone to check in on the house, she added.

Some vacation homeowners also feel guilty if they want to vacation elsewhere — it can be hard to justify paying for a trip when you already have a place to visit, Chatzky said.

She advises giving the idea of a second home a trial run. She and her husband rented in Long Beach Island for four consecutive Augusts to determine if buying a home there was worthwhile.

2. You're thinking about retiring in your vacation home — but will it fit your retirement lifestyle?

Dipping into the real estate market before actually retiring may be a wise move.

"Buying a retirement place before you retire has financial benefits," Chatzky wrote. It's easier to qualify for a mortgage while employed, and you'll get a head start on paying it off; you'll have time to settle into your place and make any necessary renovations; and you'll be able to determine the cost of living in the area, she said.

"Road testing a second house you plan to use for these purposes is even more important than road testing a house you plan to vacation in," she wrote, adding that the road test should be longer than a few weeks or days. "If it still feels like a vacation, you haven't stayed long enough."

During this road test, you should consider medical care access, services, culture and entertainment, transportation, and size of the home before purchasing, Chatzky said.

Read more: The 10 best places in the US to buy a winter home right now, ranked

3. You want to make extra money — but have you considered tax laws?

The advantages of having an extra cash flow through rental income is often what appeals to millennials buying a second home instead of a primary residence. They're using these homes to build wealth and rent them out when they're not living in them, Powell reported.

"With the rise of sites like Airbnb, HomeAway, and VRBO, making some extra cash by renting out your vacation place has never been easier," Chatzky wrote. "But that doesn't mean it's easy."

For one, there are tax laws. If you rent your house for 14 days or less, you don't have to report the rental income on your tax return; if you rent it for longer than two weeks, the IRS deems it "a business for tax purposes," — but how the IRS treats it as a business varies, depending on how, you, the owner, uses it, Chatzky said.

There are also other things to look into, like peak rental times, HOA rules, sales tax laws, and possible business permits, she added.

"Keeping the place rented means scouring the market to stay on top of competitive pricing, making sure it's clean and in order before the next renters move in, being responsive to email queries, and dealing with problems as they arise," Chatzky wrote. "In effect, you either devote a big chunk of your time to managing this property or hire someone to do it for you."

By Hillary Hoffower

Business Insider

15 Elegant Ways to Dress Up Your Porch for the Fall Season

As summer comes to an end and the weather begins to cool down, what better way to welcome the season than with a festive outdoor oasis. From pumpkins to gourds, to that irresistible fall palette, there are plenty of great ideas for dressing up your porch. Welcome guests with an autumnal entrance, and easily amp up your curb appeal with these 15 brilliant fall porch decor ideas to steal for your own spaces.

Click here for the full article

A Recession Does Not Equal a Housing Crisis

Some Highlights:

• There is plenty of talk in the media about a pending economic slowdown.

• The good news is, home values actually increased in 3 of the last 5 U.S. recessions, and decreased by less than 2% in the 4th.

• Many experts predict a potential recession is on the horizon. However, housing will not be the trigger, and home values will still continue to appreciate. It will not be a repeat of the crash in the 2008 housing market.