Danielle Negroni

55 and Over Communities: They’re Not What You Think

June 18, 2018 by Danielle Negroni Leave a Comment

Where did your mind go when you read the words “55 and Over Community”? Did you suddenly have visions of golf courses and bingo nights and shuffleboard and….your grandparents?

If you’re age 55 or older, you might not consider yourself retirement ready. Perhaps, however, you are ready to live among your peers and away from the typical neighborhood chaos of young families.

Today’s 55+ communities aren’t what you think they are. Many luxury active adult projects have sprung up in recent years in San Diego, offering homeowners resort-style amenities and more.

Here are 8 reasons to consider moving to a 55 and over community in San Diego:

Lower Costs

Homes and condos in a 55 and over community are usually smaller and priced less than similar homes in the area. This may give you the opportunity to buy in a more upscale area than you were able to previously afford.

Less Maintenance

Even if you purchase a detached home, many active adult communities will take care of some or all of your home’s exterior maintenance needs. With less square footage to take care of inside, you’ll be able to spend more time enjoying your home and new community.

Floorplans Designed For Your Stage in Life

Many 55 and over communities offer single story floorplans or contain the essentials like the kitchen and master suite to the main floor. You may also find homes with wider doorways and other features that are geared towards helping you age gracefully.

Security

Gates, restricted access, and security patrols are common features of active adult communities. If you live alone, you may enjoy moving to a community with these services.

Peace and Quiet

The minimum age limit of the community means that children and younger adults will only be guests of the community and as guests, will need to abide by the community rules. This might be a welcome change if you’ve previously lived in a community with a lot of children and teenagers. Think garage band.

Location

Most 55+ communities and certainly some of the newer projects are close to shopping, dining, entertainment, medical facilities, and more. Some active adult communities provide transportation to these nearby resources.

Amenities

The amenities available in 55+ communities vary wildly from project to project, but many of the newer luxury communities offer very attractive amenities. Sparkling pools, state-of-the-art gym facilities, clubhouses, BBQ pits, pickle ball, bocce ball courts, golf courses, and more. There may also be additional services offered that are geared towards an aging community like health services, housekeeping, meal preparation, and more.

Be aware that buying into an active adult community usually means you will need to pay more fees, either in the form of increased HOA dues or just general fees to cover the cost of all the amenities and community maintenance.

Opportunities for Socialization

One of the prime reasons people choose to move to a 55+ community is because of the opportunities to socialize and develop friendships with your neighbors. Along with the great amenities, many communities offer monthly or weekly events to get you out of the house and interacting with other people. Everything from fitness classes to yes, bingo games, help retirement-age people fill their time. Homeowners will tell you it’s the social activities they love.

When shopping for a home in an active adult community, be sure to check out their events calendar to see what kinds of activities and social outings they plan. It will be one indication if the neighborhood may be a personal fit.

If you are thinking of downsizing from your current home, I would love to talk to you about your next step, whether that’s buying in a 55 and over community or somewhere else. Give me a call at (858) 735-5767!

8 Things to Do When Buying a New Construction Home

June 8, 2018 by Danielle Negroni Leave a Comment

New construction homes have a certain appeal that existing homes don’t. They’ve never been lived in so you won’t have to wonder about the home’s history. You’ll have the opportunity to customize your home from the ground up, rather than trying to modify what’s already there. And you won’t have to deal with an emotional seller.

But if you’ve decided to purchase a brand new home in San Diego, there are a few things you shouldn’t forget to do:

Hire Your Own Agent

Many buyers of new construction don’t think to hire their own real estate agent – but they really should. The sales agent is being paid to represent the builder’s interests, not yours. Plus, since you’re buying the home (not selling) the builder will most likely pay your agent’s commission. So it’s really a no-brainer to hire your own agent to represent you and negotiate on your behalf!

Ask About Extras

Don’t assume that what you see in the model home comes standard. Ask about what’s included and not included in the advertised purchase price. If you want to pay for additional upgrades, prioritize those things you can’t easily change about the home, like square footage and lot location. You can always install different flooring or repaint later and it may be cheaper to hire your own contractor to do the work anyway. Builders often mark up the prices on upgrades. You can ask your agent to give you a ballpark estimate of what a particular update might cost. Or they can refer you to a trusted vendor who can give you an estimate.

Research the Community

Depending on where the builder is in construction, you may not have a clear picture of what the community will be like when it’s finished. Make sure to ask how many total homes will be built and what community amenities will be offered. You should also find out about plans for the land outside the community. If there’s empty space now, what will be there in the future? Find out if any new schools will be built and if there are plans to modify the existing roadways to accommodate the increase in traffic.

Negotiate

While most builders do not want to compromise on price, they may be willing to throw in some extras or make concessions in other ways. It never hurts to ask. Your agent will be instrumental during this negotiation phase.

Ask About Warranties

Don’t forget to ask about warranties for the things that will be installed in the home. You can’t assume because something is new that you won’t have a problem with it. Make sure you understand what’s covered and what’s not and if there’s any special process you need to follow to get repairs done in the future.

Get Everything in Writing

Just as you would if you were purchasing an existing home, get everything you’ve negotiated and agreed upon in writing. Since the home may not be built yet, it’s important that the contract explicitly spells out how the home will be completed and what will happen if the home is not finished on time.

If you don’t understand what you’re signing, this is another area where it pays to have your own agent. Your agent will be able to help explain the contract to you and if there’s anything that stands out as a red flag, they should be able identify it for you.

Shop Lenders

Builders often prefer to use their own lender, but that lender may not be the best choice for you. You should find out if there’s any incentive to use the builder’s lender and meet with them, but you should also talk to one or two other lenders to help you make a decision. Though there may be an incentive now to use the builder’s lender, if you can get a better rate elsewhere that might make better financial sense for your family in the long run.

Get a Home Inspection

Getting an independent inspection of your new home before closing is always a good idea. After all, you want to know what you’re buying and ensure that the work was done properly and up to code. Workers can make mistakes so it never hurts to hire a professional to double-check. You will want to make the time to be there for the inspection so you can hear what the home inspector has to say first-hand.

If you’re thinking of buying a brand new home in San Diego, I would love to tell you about the great new communities that are being built and take you to tour the model homes. And if you find one you like, I’d be happy to represent you on your purchase. Give me a call at (858) 735-5767!

San Diego Free Concerts – Summer 2018

June 4, 2018 by Danielle Negroni Leave a Comment

Looking for something fun and free to do with the whole family this summer? Check out this list of summer concerts happening across North County San Diego!

Carlsbad

Carlsbad TGIF Concerts in the Park

Fridays, 6-8pm

760-602-2090, www.carlsbadca.gov

Stagecoach Community Park: 3420 Camino De Los Coches

JUN 22 Stoney B Blues – Blues

JUN 29 80z All Stars – 80s Covers

JUL 06 Lao Tizer Band – Jazz

Poinsettia Community Park: 6600 Hidden Valley Road

JUL 13 The Detroit Underground – Soul/Motown

JUL 20 The Mighty Untouchables – Top 40

Calavera Hills Community Park: 2997 Glasgow Drive

JUL 27 Jonathan Lee – West Coast Country

AUG 03 Phat Cat Swinger – Swing

Alga Norte Community Park: 6565 Alicante Road

AUG 10 Orgone – Funk/Soul/Afro-Disco

AUG 17 Poncho Sanchez – Latin

Del Mar

Del Mar Foundation Summer Twilight Concerts

Tuesdays, 6pm

858-635-1363, www.delmarfoundation.org

Powerhouse Park: 1600 Coast Blvd

JUN 19 Sully and the Blue Eyed Soul Band

JUL 10 The Pettybreakers – A Tribute to Tom Petty

AUG 07 The Steely Damned 2

AUG 21 The Mighty Untouchables

Encinitas

Encinitas Concerts at Moonlight Beach

Sundays, 3-5pm

760-633-2740, www.encinitasca.gov

Moonlight Beach: 400 B Street

JUL 01 Fan Halen – Rock

JUL 15 Betamaxx – 80s

AUG 05 New Leaf – Reggae

AUG 19 The Pettybreakers – A Tribute to Tom Petty

Oceanside

Oceanside Concerts in The Park

Fridays, 6-8pm

760-435-5041, www.ci.oceanside.ca.us

Rancho Del Oro Park: 4701 Mesa Drive

JUN 15 The Mardels

JUL 20 The Greg Douglass Band

Mance Buchanon Park: 425 College Ave

AUG 10 The Generations Boulevard Band

Solana Beach

Solana Beach Concerts At The Cove

Thursdays, 6-7:45pm

858-720-2453, www.cityofsolanabeach.org

Fletcher Cove Park: 140 South Sierra Ave

JUN 21 Ryan Hiller Duo

JUN 28 Navy 32nd Street Brass Band

JUL 05 Hullabaloo Band

JUL 12 Quartet Nouveau

JUL 19 Collin Elliot

JUL 26 Three Chord Justice

AUG 02 Funk Junkies

AUG 09 Jimmy and Enrique

AUG 16 Sully & The Blue-Eyed Soul Band

AUG 23 Rockadamy and the Special Guests

Where is your favorite place to enjoy a concert in San Diego?

How to Save For a House

May 27, 2018 by Danielle Negroni Leave a Comment

Budgeting to buy a home in San Diego can feel like a monumental undertaking. It doesn’t help that home prices keep going up – in May, the San Diego Union-Tribune reported that the median home price in San Diego County is now $570,000! Still, home ownership is one of the best ways you can build wealth for yourself and your family. It just may take you longer to afford a home in San Diego than in another part of the country. But if you’re committed to being here for the long haul, you should start budgeting to buy a home if you haven’t already.

Step #1: Raise Your Credit

If it’s been awhile since you’ve checked your credit, take a look at your score and start working on making improvements where you need them. You can refer back to this post where I answered a few common questions people typically have about their credit score for ideas on what to do to improve your score. Your credit score is a crucial part of the home buying process because it helps determine what rate you get for your mortgage and can even qualify you for special loan programs.

Step #2: Determine How Much You Need to Save

Next, you’ll need to determine how much you need to save for a down payment. You don’t need to put 20% down! There are many loan programs you can qualify for that require just 3-5% down. You can use the median home price for San Diego County as a baseline or if you already know what you want to buy, check current home prices in that neighborhood. Keep in mind that if you put less than 20% down on a home, you’ll need to pay Private Mortgage Insurance (PMI) which is an extra cost on top of your mortgage. However, you may be able to refinance out of it once you’ve built up enough equity.

Step #3: Decide on a Time Frame

Once you’ve figured out how much you need to save, you need to decide when you’d like to buy a home. In five years? Or two? Divide the amount you need to save for your down payment by your ideal timeframe to figure out how much you need to contribute annually to your house fund. From there, you can figure out your monthly savings goal.

Step #4: Create a Budget

Saving for a home requires setting (and keeping) a budget. You’ll likely need to make changes to your spending habits in order to successfully save for a home and that starts with taking a hard look at where your money is going. While you’re reviewing your finances, you’ll also want to consider your Debt-to-Income ratio (DTI). Most lenders require your DTI to be below 40%. Special circumstances apply, but in general you should be working to bring your DTI to below 40%. That might mean paying off more of your student loans or reducing your car payment. And while you’re creating your new budget, don’t forget to budget for your emergency fund. You’ll need to show the lender you have additional cash reserves besides your down payment for closing costs and the inevitable repairs your home will need.

Step #5: Set Up a Special, Automated Savings Account

Go to the bank and set up a special savings account for your down payment. Then, set up automated transfers from the account you currently deposit your earnings into. Making this an automated process ensures that you won’t “accidentally” spend your house savings on a new computer or a vacation. Treat this savings account as if it is completely off-limits and do not dip into it except in dire circumstances. Emergencies happen, but you need to be honest with yourself about what constitutes an actual emergency.

Step #6: Contribute the Extras

Did you get a tax return this year? A bonus? Put these unexpected windfalls into your home savings account. You weren’t expecting those funds anyway so you won’t miss it.

You should also work to actively raise your income at your current workplace or pick up a side hustle like driving for Uber or selling thrift store finds on Ebay. Use any extra cash you earn from your side hustle as additional fodder for your down payment fund.

Step #7: Be Flexible

Life happens. Be kind to yourself if things don’t go according to plan. Just do your best and be as consistent as you can.

If you’re feeling like you might be ready to buy, check out my Total Beginner’s Guide to Buying a Home. Then, give me a call – I’d love to help you become a San Diego homeowner!

6 Common Home Buying Questions – Answered!

May 15, 2018 by Danielle Negroni Leave a Comment

Even if you’re not a first-time home buyer, it’s okay to admit that you still have questions about the process of buying a home. No transaction is ever the same and the mechanics can change drastically between transactions, especially if it’s been a few years since you purchased a home in San Diego. Below, I’ve answered six common questions I often receive from home buyers:

1) How Much Home Can I Afford?

Affordability is the question on everyone’s mind as home prices in San Diego continue to rise. It’s easy to feel discouraged and wonder if you can afford to buy anything. The truth is, you may not be able to afford the house you want. Yet. Or, you may be pleasantly surprised! The best way to determine how much you can afford is to meet with a lender to get you pre-qualified. You’ll still need to get pre-approved for a loan before you can buy, but getting pre-qualified will give you an idea of what you can afford for a monthly mortgage payment. Of course, you also need to consider the cost of HOA dues, Mello-Roos fees, and contributions to your emergency fund. Once you have these numbers in mind, you can compare them to home prices in the neighborhoods you’re considering.

But, if you realize you can’t buy the home you want in your dream neighborhood, don’t give up! Give me a call, I’d be happy to give you some other options to consider that might realistically fit your budget.

2) What Should I Offer For a Home?

Before you write an offer on a home, there are many things you should consider. What is the seller’s motivation for selling? How long has the home been on the market? What do the comps show? Is the home listed as-is?

I will help you evaluate each home you want to write on and help you craft a strong offer. But be prepared that as San Diego is in a seller’s market, you’re likely going to need to offer near full price or perhaps a little more to secure your home, especially if it’s turnkey and in a desirable area.

3) How (and When) Do I Set Up Home Inspections?

Once we have your home in escrow, I will help you schedule all necessary inspections and make sure we get the appointments set before we need to remove contingencies. The inspections are your chance to investigate what you’re buying so it is important that you be there for as many as you can so you can meet the inspectors and see what they see.

4) How Quickly Can I Close Escrow?

Most escrows can be closed in 30-45 days. If you’re paying all cash for your property or waiving contingencies, you may be able to close in less. However, you or the seller may need a longer escrow for a variety of reasons. We will negotiate the length of the escrow during the offer process and will find a timeframe that works for both you and the seller.

5) If I Want to Do the Repairs on My New Home Myself, Can I Ask For Concessions?

Yes, you can, though the seller may not be inclined to give them to you. A lot depends on their financial situation and the terms of your loan. The seller may be selling their home as-is because they truly cannot afford to pay for the repairs that are needed to fetch a higher price for the property. Certain repairs may also need to be completed prior to closing escrow in order to fund your loan. The lender will be able to advise on specifics, but most loans require the home to be habitable in order to fund.

6) How Much Should I Budget For Closing Costs?

Your actual closing costs will vary, but plan to budget 2% of the actual purchase price. So if the home you’re purchasing is $500,000 expect to pay around $10,000 and in closing costs. The escrow company will provide you with an estimate once you get into escrow, but in addition to your down payment, make sure you put aside money to pay closing costs – most buyers and sellers each pay their own closing costs so don’t expect the seller to cover this for you!

If you still have questions about the home buying process, please don’t hesitate to reach out. I don’t believe in stupid questions – I’m here to help you in any way that I can!

8 Affordable Ways to Update Your Home

May 4, 2018 by Danielle Negroni

Whether you’re planning to sell in the future or just want to breathe new life into your home, there are many easy and affordable ways to update your house! And you don’t need to have any special skills or need to hire someone to do these updates – you can tackle most projects in a weekend.

Repaint

It’s amazing what a can of paint can do. Whether you entirely repaint the interior of your home, paint the cabinets, add an accent wall, or repaint your existing furniture in a trendier color, paint is the DIYers best friend! There are thousands of online tutorials for painting projects – all you need are the right tools, a can of paint, and a little creativity.

Swap Out Hardware

Handles, drawer pulls, knobs, hinges – these come in hundreds of styles and finishes to fit any aesthetic. Choose gold or brass hardware for an on-trend look or go for a classic finish like brushed nickel. If your style is more eclectic, mix and match finishes or hunt for vintage options.

Update Your Light Fixtures

You may need to call in an electrician to help you update your light fixtures, but some may be easy enough that you can do yourself. If you have builder-grade light fixtures, take a trip to your local Home Depot or Lowe’s to pick out a few new pieces. This will instantly add character to your home and can help you pull a room together.

Refresh Old Appliances or Furniture

Whether you’ve recently brought home a vintage piece or just want to fix up an existing piece of furniture that has seen better days, contact paper and stickers are a great way to fake the look of a luxe piece for less. Use faux marble contact paper to get the marble-topped table of your dreams or use stainless steel “stickers” to cover an appliance that is starting to yellow with age. You can also use wallpaper or even washi tape to put a new spin on an old favorite.

Install New Light Switch Covers

It might not seem like much, but updating your light switch covers can help a room feel complete. It’s the attention to details that can really make or break a space.

Upgrade Your Window Treatments

You can work with a professional window specialist to get drapes, shades, and shutters. But you can also browse your local big-box retailer to choose a new solution for your home and install it yourself. While you won’t be able to boast that you have custom window coverings when you go to sell your home, you will get a new look at a fraction of the cost.

Install a New Tile Backsplash

Did you know that they make peel-and-stick tiles that are ideal for use in your kitchen or bathroom? These are easy to install and don’t require a handyman to do the work.

Rearrange the Furniture

This might seem obvious, but never underestimate how powerful rearranging the furniture can be. It can dramatically affect how light, bright, and open your space feels. If you can’t figure out how to rearrange a space, consult a friend with a good eye to help you see the possibilities!

These are just a few of the many affordable home projects you can tackle on your own! And if you’re willing to pick up a few new skills, you can save even more on future home updates.

But if you’d rather hire someone to do the work for you, I would be happy to provide you with some local recommendations. Just reach out to me and let me know what you’re working on!

4 Great Places to Shop For Home Decor and Furniture in San Diego

April 22, 2018 by Danielle Negroni

In San Diego we’re lucky to have access to both chain furniture stores and local boutiques. It makes decorating a home a breeze. But while you can always find great pieces at West Elm, Pottery Barn, and Crate & Barrel for your new house, it’s a good idea to mix and match pieces from different stores to avoid having your home look like a catalogue with too many matching sets. I always like to check out our local stores when I get the chance and these four San Diego shops are some of my favorite places to look for furniture and decor for my own home.

Skylar’s Home & Patio

Website

Skylar’s Home & Patio has two locations in San Diego, Carlsbad and Kearny Mesa. They sell high quality furniture for both indoor and outdoor living in a variety of styles. They carry top brands like Dovetail Furniture, Fermob, Kingsley Bate, Polywood Eco-Friendly Furniture, and Hunter Douglas window treatments. They also offer design services if you need help picking out furniture and decorating your home. If you can’t make it in to their store, you can also shop much of their inventory online.

Nativa Interiors

Website

The husband-and-wife team behind Nativa Interiors created their brand with the vision to offer high-quality home furnishings at a fair price. Alongside their own creations, they also carry luxury brands like Lee, American Leather, Stressless, and Gamma Arredamenti. In addition to the beautiful pieces available at their two show rooms in Solana Beach and La Jolla, they also offer interior design services. In their words, “Nativa Interiors is no longer a furniture store where customers came to buy one piece of furniture but rather an exclusive resource where our customers come to work with our interior designers to transform a house into a dream home.”

Kern & Co

Website

Kern & Co is my go-to resource for specialty pieces. They are a high-end furniture and interior design company with two showrooms in Solana Beach and Rancho Santa Fe. Kern & Co offers selections from leading brands as well as custom furniture options, upholstery, window treatments, and kitchen and bath designs through their partnership with Susan Spath Inteior Design. Susan’s team can help you bring your vision for your home to life.

Living Spaces

Website

While Living Spaces has locations outside of San Diego, they’re not as main stream as Restoration Hardware or Z Gallerie. Living Spaces carries many great brands like Magnolia Home by Joanna Gaines and Studio 7 Collection. While some furniture stores have a signature style that infuses all of their offerings, Living Spaces has something for everyone. You can shop for mid-century modern, coastal, transitional, and rustic pieces (among other styles) online or at one of their two San Diego locations. Living Spaces also has great accessories to outfit a home or office.

But remember, while you may be daydreaming about all the new pieces you’d like to buy for your home, make sure you close escrow before making these big purchases. You could jeopardize your escrow by making significant charges to your credit card, which can impact your debt-to-income ratio and affect your loan approval.

If you’re planning to buy a home this summer, I would be happy to meet with you and discuss how we can get you into the San Diego home of your dreams!

How to Prepare Your Home For Showings

April 9, 2018 by Danielle Negroni

Even though it’s a seller’s market, it’s not enough to just put a “For Sale” in the front yard and call it a day. True, your house will probably sell eventually. But it likely won’t be at the price you want. Preparing your home for the market and for showings is crucial to making sure buyers see your home in the best light.

First impressions matter even in a market where sellers seem to have the upper hand. Most buyers are looking for a turn-key home. A messy or cluttered house gives the impression that the home hasn’t been well cared for.

Before you list your home for sale and open it up for showings, make sure you take these 8 steps to prepare your home:

First Impressions Matter

It bears repeating that first impressions are everything. Up your home’s curb appeal by sweeping the walkways, cleaning up the landscaping, painting the front door, and setting out a new welcome mat.

Let the Light In

Before leaving the house for a showing, pull back the drapes and open up the blinds to let the natural light flood in. No buyer wants to imagine themselves living in a cave. Make sure their first impression of your home when they open the door is of a light, bright, and cheerful space! If the home is being shown at night, turn on all the lights both inside and outside to give your home a warm glow.

Take Care of Small Repairs

Windows that don’t open, doors that stick, and handles that don’t turn are all easy things you can fix before your home goes on the market. As buyers explore your home, they’ll be keeping a mental list of all the things they’ll need to fix or change if they buy your property. Avoid adding to the list by taking care of the simple things up front!

Stage and Declutter as Needed

The goal of staging and decluttering is to help buyers imagine themselves living in your home. It can be hard to keep your home picture-perfect if your family is still living there, but it’s so important to clean up before every showing. When a buyer sees a cereal bowl in the sink or a stray sock on the floor, it instantly reminds them that they’re walking around someone else’s home.

Keep Bedrooms Neat

If you have kids, this can be a tall order. But decluttering your entire home ahead of time can help. The fewer possessions your children have in their rooms, the easier it will be for them to tidy up before they leave for school.

Keep Bathrooms Clean

After the kitchen, the bathroom is usually the second most expensive interior remodeling project. Even if your bathroom isn’t updated, keeping it neat and clean can help buyers see its best features and overlook the less desirable elements.

Make Closets Look Bigger

Buyers will almost certainly be checking out the closets and existing storage space you have in your home. Ruthlessly declutter these areas and neatly arrange the items you leave behind to create the impression that your home has plenty of space for all of their belongings!

Get the Pets and Kids Out of the House

If your home is being shown, your home whole family needs to get out of the house – including your pets! Many people are afraid of dogs or just don’t like animals. No matter how nice your pets are, you want buyers to feel calm and relaxed as they view your home. Work with your agent to develop a showing schedule that will allow you to get your pets out of the home or at least, into a secure area before every showing.

Likewise, if your kids are used to coming straight home after school, work out a plan where they can stay with a neighbor until the showing is over. The only people that should be in the home during the showing are the potential buyers, the buyer’s agent, and your agent, if you want them to be there for showings.

As time-consuming as it can be to prepare your home for every showing, this preparation is absolutely crucial and will help shorten the time it takes to find a buyer. Once an offer has been accepted, the showings will stop and you can focus on packing for your move!

If you’re planning to move this spring or summer, I can advise you on what steps you need to take to prepare your home and help you develop a gameplan to get your home on the market during the home-buying peak!

5 Things to Consider Before You Downsize

April 1, 2018 by Danielle Negroni

No matter how much you love your home, there will come a time when your house simply won’t fit your needs anymore. Perhaps your home feels too roomy now that your kids have gone off to college. Or maybe you’re just tired of lugging the vacuum cleaner up the stairs and are ready to purchase a smaller, single story home. Whatever your reasons, here are 5 things to consider before you downsize.

1) Know Your “Why”

It pays to keep your “why” firmly in the front of your mind. For most people, downsizing is not an easy task. You’ll likely need to spend a considerable amount of time decluttering and going through all the things you’ve accumulated after years in your current home. Having a strong reason to get to the finish line will keep you motivated when you’d rather throw in the towel.

2) Separate Yours Wants and Needs

As with any other home shopping experience, you’ll need to separate your needs from your wants before you start looking. This will allow you use your time more efficiently and help you avoid buyer’s remorse down the line. For tips on separating your wants from your needs, check out my recent blog.

3) Know How Small is Too Small

It’s important that you don’t get too hung up on purchasing the smallest possible home. Take time to think about the spaces you most enjoy in your current home, your hobbies, and how much time you plan to spend in your new house. You may find that “downsizing” really means downsizing on your monthly costs, not square footage.

4) Consider Your Costs

It seems simple on paper: smaller house = cheaper mortgage = more money in your pocket. But that’s not always the case. Particularly if you’re moving to a condo community, make sure you’ve factored in HOA and mello-roos fees. If your primary reason for downsizing is to save money, you’ll want to keep track of these “hidden” fees to ensure your monthly housing costs will truly be reduced.

You should also take into account how much it will cost to move and furnish a new space. Many times, people who downsize find themselves having to purchase all new furniture that will actually fit into their new space. A visit to a local furniture store can help you estimate your costs.

5) Explore Neighborhoods

San Diego truly has a neighborhood to fit every lifestyle. Just because you’ve spent the last twenty years in the same location doesn’t mean you have to buy another property in the same area. Imagining the possibilities is part of the fun of house hunting. Spend some time checking out communities before narrowing your list down to a couple to focus on during your search.

While it can be difficult to say goodbye to a beloved home full of wonderful memories, downsizing can be a fun and exciting adventure! If you’re thinking of making a change, I’d love to help you through this next step – give me a call to get started!

3 Reasons to Sell Your Home in 2018

March 20, 2018 by Danielle Negroni

“It’s a seller’s market!”

“Now is a great time to sell!”

As a San Diego homeowner, you’ve probably seen this phrase on one piece of real estate marketing mail after another for the last few years. It can be hard to discern if it actually is a great time to list your home or the Realtors who mail in your neighborhood are just saying that to get you to call them.

While it is a seller’s market and a great time to sell, it helps to have context for those statements:

In my last blog post, I took a look at the median sales price of homes in a few different San Diego housing markets. Many local markets are reporting prices we haven’t seen in ten years or more. In some areas, the median price for a detached home has far surpassed its 2006 pre-recession peak. But home values can’t continue to rise indefinitely. I believe we will see a decline in home values in the months to come as interest rates rise and the housing market peaks.

Interest rates have steadily risen nearly every week since the beginning of the year. Bankrate.com shows current interest rates for a 30-year fixed rate mortgage hovering around 4.5%.

As interest rates rise, they limit buyer purchasing power. According to a recent article from Rismedia, “If interest rates rise 1 percent and all other economic factors remain the same, purchasing power for homebuyers will decrease by just over 11 percent; therefore, every quarter-percent (0.25 percent) rise of interest rates reduces homebuyer purchasing power by 3 percent.” This means that someone who might have been able to purchase your home a few months ago might no longer have the buying power to do so, shrinking the pool of potential buyers for your home. The higher the value of your home, the more you will likely feel the effects of that shrinkage. Rising interest rates will help bring down prices at the top end of the market, as homeowners who are serious about selling might find themselves making concessions on price to get their home sold.

Once your home sells, you will likely need to purchase a replacement property. If you wait too long to sell your home, you might find yourself conceding on your sale price AND entering the market with less purchasing power that you would have had just a few months ago.

Finally, if your home is aging, you should keep in mind that you likely have some big-ticket repairs on the horizon. Depending on its composition, your home’s roof will need to be replaced every twenty to thirty-five years. The lifespan of a furnace is about fifteen to twenty years. Most appliances last no more than fifteen years. Waiting to put your home on the market means you could end up footing the bill for these repairs in order to sell the house, taking a hit on price to get your home sold, and then entering the marketplace with a lighter wallet and reduced purchasing power.

There’s one other point you should also keep in mind: the new tax law lowered the mortgage interest deduction from $1.1m to $750,000. In 2018 and going forward, your state, local, and real estate taxes are put into one pool for deductibility purposes. Between the three of them, you only can deduct up to $10,000 total. It’s hard to predict how these tax changes will impact the real estate market, but they do cumulatively place a heavier financial burden on the buyer.

If you’ve been on the fence about selling, it might be time to get off the fence and put a “For Sale” sign in your yard. I’d be happy to meet with you to discuss the specifics of your situation. Give me a call or send me an email to set up an appointment!