3 Essential Steps to Take as a Homeowner — and How to Save

 By Paula Higman

June 20, 2022

Owning a home is a major milestone in anyone’s life, whether you’re a first-time homebuyer or settling into a new place for the next phase in your life.

As with most milestones, new home ownership makes an impact on your finances. It’s not a move to make lightly.

If you're a homeowner or planning to buy a home, get your ducks in a row now to set yourself up for long-term financial success.

Get the best mortgage rate possible

The interest rate on your mortgage can mean a difference of thousands of dollars over the years — that’s why homeowners watch so closely for rate changes of just a percentage point or two.

You can find the best mortgage rate available to you by shopping around and comparing offers. Don’t ever just settle for the offer you see; available rates vary from lender to lender, so you can save a lot by looking around.

Even if you’re already a homeowner with a mortgage that’s as new as a year or more old, you can still save money by refinancing into a loan with a lower interest rate.

Don’t worry — you don’t have to travel around from bank to bank to compare offers. You can do it all online and in one place.

With a little bit of information about your home-buying plan and budget, you can see mortgage offers from lenders all over the country and compare interest rates side by side.

Getting pre-approved for a mortgage doesn’t affect your credit score, and you don’t have any obligation to accept an offer if you don’t find something that’ll save you money.

Sign up for homeowners insurance

Homeowners insurance is an inevitable cost for most homeowners — if you have a mortgage, the lender most likely requires it, because it takes care of your home in case of major costs due to damage or theft.

This cost doesn’t have to break your monthly budget.

Monthly premiums for homeowners insurance vary widely depending on where you live and the value of your home — you could pay as low as $50 or more than $200.

Buy an affordable life insurance policy

Would your family be able to stay in your home if something were to happen to you? A house payment is usually a family’s biggest expense — and not paying it has dire consequences.

Protect your family against losing your income by buying an affordable term life insurance policy.

Compare insurance quotes and save money

Did you know that you could be saving some serious money just by switching insurance companies?

It’s true. You could be paying way less for the same coverage. All you need to do is look for it.

As an agent who's an expert in this local area, I bring a wealth of knowledge on local communities, current market conditions, and the home buying and selling process. I strive to provide exceptional service every step of the way, so I can provide you with a real estate experience that exceeds your expectations.

Local Expertise:
You need someone who knows this area inside and out! I can work with you to find the right home at the right price for you, including all the neighborhood amenities that matter.

Selling Your Home:
When it's time to move, you need someone who markets your home, knows how to find the right buyer, negotiates on your behalf, oversees the inspections, handles all necessary paperwork, and supervises the closing. I take care of everything you need, from start to close.

Timing Is Everything:
Whether you are looking for a new home or thinking about selling your current home, call me today. I will put my expertise to work to provide you with guidance and advice on what you need to know to make the best possible decision for your real estate needs.

 

Paula Higman Real Estate
Coldwell Banker Realty ~ Park City

paula@paulahigman.com

Mobile +1-435-602-8228

With Mortgage Rates and Home prices soaring the solution might be Buying 1/6 of a house

 With Mortgage Rates and Home prices soaring the solution might be Buying 1/6 of a house

Since the beginning of the pandemic, the housing market has been booming. Across the U.S., single-family homes increased in price by over 20%.

With incomes falling to grow at the same rate as housing prices, the dream of homeownership for Gen Z and millennials seems more and more out of reach.

While buying a home outright might seem impossible, fractional homeownership could be the solution you’re looking for.

What is fractional homeownership?

Fractional homeownership allows individuals to buy a share of a home. For instance, if a home is listed on the real estate market at $600,000, and six equal shares of the home are for sale, each share would sell at a price of $100,000.

For that price, shareholders would have exclusive access to the home for 1/6th of the year or two months.

Generally, properties are sold through property management companies that will tend to affairs such as maintenance. However, the associated costs must be divided among the owners.

As the value of the property increases, so does the value of your individual share.

Another way to take advantage of fractional homeownership is to purchase a share of a residence, then rent it out. By doing this, you can use the rental income to pay for your share. Meanwhile, any profits can be used for future investment into your own residence.

To avoid conflict, the investors should draft very clear agreements regarding the property. If, for instance, there is no clear agreement made about scheduling, owners might find themselves arguing about when they can access the property.

Further complications can arise when it comes time to sell the property, or when an individual wish to sell their individual share. Because of these complications, it is critical to have clear agreements written up in advance of investing.

Shared equity agreements

A variation of fractional homeownership is shared equity agreements. In these instances, you once again purchase a share of a home, but you only have purchased equity into the residence.

If, for instance, you want to purchase a home but it is just out of reach, you might consider getting a shared equity mortgage. As a borrower, you would be required to live in the residence you purchase. The lender is, effectively, hands-off, but if the arrangement is such that they contribute to the mortgage interest, they could potentially claim the interest on their taxes as a deduction.

Any equity in the property would then be split amongst the owner and investor, based on the agreed-upon shares.

This is a great way for first-time homeowners to get into the housing market, but there are numerous risks associated with it.

Shared equity drawbacks

With a shared equity agreement, you must pay back the shares to the investors when it’s time to sell your home. So any profit that you have made needs to be distributed proportionally to the lender. This means that you will ultimately make less profit when the house is sold, and therefore have less equity for purchasing a new residence.

This drawback can make it difficult to make gains in the real estate market, especially for people who have growing families. While the home you have might be the right size for you presently, you may outgrow it as your family expands.

In order to purchase a bigger home, you will typically require a greater down payment and higher mortgage payments. Because of shared equity in your original residence, you may discover that you’re in the same position you were when you purchased your first home.

Another drawback of a shared equity mortgage is that as the owner-occupant of the dwelling, you might be required by your state to pay the lender rent proportional to their equity.

For instance, if your co-investor has contributed 1/5th of the value of the home, you would be required to pay the fair market value in rent for the same amount of the dwelling.

Paying rent on part of your home can be looked at in similar terms to having to pay condo fees. It’s important, however, that you factor in this additional cost when considering a shared equity mortgage or shared equity agreement. If you don’t, it’s possible that you’d end up paying more for your home than you anticipated.

Crowdfunding

If you are looking to get into the hot housing market, but can’t afford to invest in a house for yourself, there are various companies that allow you to become an investor without the obligation of ownership.

This “real estate crowdfunding” allows you to purchase a share in a residence from a company, and that residence is then rented out to a tenant. Any interest that is made from rental income is distributed among shareholders, and when it comes time to sell the property, shareholders split the dividends.

There are often “membership fees” associated with this form of investment. The fees help pay the operational costs for the parent company. Additionally, you might have to lock into owning your shares for a certain time frame, so you won’t be able to sell until this time has elapsed.

While you don’t actually own a physical place you can call home in this model, it will allow you to get your foot in the door on real estate investments.

As an agent who's an expert in this local area, I bring a wealth of knowledge on local communities, current market conditions, and the home buying and selling process. I strive to provide exceptional service every step of the way, so I can provide you with a real estate experience that exceeds your expectations.

Local Expertise:
You need someone who knows this area inside and out! I can work with you to find the right home at the right price for you, including all the neighborhood amenities that matter.

Selling Your Home:
When it's time to move, you need someone who markets your home, knows how to find the right buyer, negotiates on your behalf, oversees the inspections, handles all necessary paperwork and supervises the closing. I take care of everything you need, from start to close.

Timing Is Everything:
Whether you are looking for a new home or thinking about selling your current home, call me today. I will put my expertise to work to provide you with guidance and advice on what you need to know to make the best possible decision for your real estate needs.

 

Paula Higman Real Estate
Coldwell Banker Realty ~ Park City

paula@paulahigman.com

Mobile +1-435-602-8228

Mayflower Development Update - Park City, UT

 

Mayflower Development Update   The MWR Conference hotel has officially started as the general contractor, Jacobsen Construction, and the pile-lagging and soil-nail wall subcontractor have mobilized and started work. The CMA has been executed and three initial trades contracted; soil-nail, the balance of the excavation, and SWPPP. The footings and foundations scoping are complete and the contract award is scheduled prior to the month’s end. The balance of the GMP’s subtrades’ has been revived and re-bidding is in process. The building permit is complete and impacts fee payment released by July 5th. A groundbreaking ceremony was held in mid-June.  Ski Improvements and Associated Services   The connector lift, Lift #3, into Sultan’s Nose base terminal pad was excavated and graded to finish elevation. Ski beach grading and drainage is 35% complete and will be finished by the Fall of 2021. Planning for ski operations continues with a focus on snowmaking engineering and system design as well as skier services programming. Scoping and contractor selection for primary mountain access roads in the process.  2021 key summer initiatives follow: •  Snowmaking •  RFP Skier Service programming •  Lift amended RFP •  Mountain access initiation and roads construction Infrastructure Improvements   Substantial progress on-site work and civil infrastructure:  Water, sewer, storm drainage, and retaining walls are completed in Mayflower Drive and Glencoe Way. In addition, these roads are paved to the southern construction entrance which is roughly 4,000 LF and over 7,000 tons of asphalt.    Five-Star Hotel entry has permitted a borrow-pit and the emergency vehicle access (EVA) road under construction with completion scheduled for the first week of August. Water Tank #2 pad and pumphouse clearing complete and contractor contracted with construction starting mid-July.   Galena Ridge Way and Ski Beach Way roads graded; water is 25% complete and sewer 100% complete, and storm drain pending.    Non-Culinary Water. JSSD’s bids came back high, re-bid will occur in the Fall of 2021 ensuring ample time to complete improvements prior to required delivery. North Frontage Road. Engineering and plan sets are complete and under final review. A bid package was issued with responses pending, construction starting on the north end will begin mid.   Temporary Construction Parking. Engineering was enacted and permits pulled for over 200 temporary parking spaces adjacent to Lot 13. Construction; stormwater, drainage, grading, and asphalt, will be completed by June 25th.   Portals, North and South. UDOT continuing to make progress. They are tracking for a late fall of 2021 completion.   Voluntary Cleanup. The environmental contractor reinitiated work in May and is on track to complete VCP Phase 1, development parcels, by the Fall of 2021. Star and Glencoe mine remediation action plan in the process.

Pioche Apartments. Buildings A, B, and D have footings complete and foundations in process. Building A has the first floor’s post-tension slab poured and second-floor formation in the process. Building C excavation encountered rock and blasting will occur. The site subsurface infiltration system build-out continues and is 55% complete. The GMP buy-out with the general contractor, New Star Construction, is complete and on budget; equity and bank loan in place with leasehold interest closed.    Pioche Proper. Pioche’s estate lots and townhomes are progressing. Engineered infrastructure permit set as well as initial plat remitted to an agency for review. Binding REPSA executed.  Tax Allocation Revenue (TAR) Bonds. In early June, the MIDA board unanimously approved the procurement and issuance of TAR bonds. A public release and offering is anticipated mid-August.  Architectural Designs. 4240 Architecture has been re-engaged on the Skier Hotel, skier services and village core. An RFP was issued for the Select Service.    East Overlook. East Overlook, utility parcel, engineering is in process with key partners, e.g. JSSD, RMP, and Dominion, as numerous system impact studies complete.    Skier bridges. Engineering contracted and pending approved subdivision plans.             Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction. Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.   Ensure that you have the best representation when buying and/or selling Contact Paula Higman Real Estate Park City at 435-602-8228  Connect With Us:

LET'S TALK...

Paula Higman Real Estate - Coldwell Banker Park City

paula@paulahigman.com

(435) 602-8228

FOLLOW YOUR DREAM, HOME.

        

 

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

Ensure that you have the best representation when buying and/or selling Contact Paula Higman Real Estate Park City at 435-602-8228 

Connect With Us:

      

What the Future Indicates for Buyers

 Ever since interest rates decreased at the beginning of the pandemic, the real estate market throughout most of the country has heavily favored sellers. When interest rates decrease, more buyers enter the market to secure mortgage loans with low-interest rates. High buyer demand means that sellers oftentimes receive multiple bids.

The combination of low-interest rates, extremely quick sales, low inventory, and rapidly increasing price gains, has the housing market favoring sellers by a considerable amount. While this is still true today, market conditions may be set to change in the near future.

What the Future Indicates for Buyers

Over the past six months, interest rates have been steadily increasing. While rates averaged around 3.05% towards the end of 2021, they have since increased to an average of 5.10% as of May. Even though there are still a high number of potential buyers on the market, the higher interest rates have allowed the market to stabilize somewhat.

Keep in mind that home values rose by upwards of 20% over the course of 2021, which means that buying a home today may be somewhat more expensive than it was just one year ago. If you're set to buy a home, the housing market pivoting away from sellers is highly beneficial.

While home prices may have been lower one year ago, the increased buyer competition in the market made it difficult for many buyers to make bids that were high enough to satisfy the seller. Once demand decreases among buyers, a home inventory will increase, which means that you may find it easier to purchase a home without needing to make an offer that's far higher than the listing price.

In general, you should expect demand to still be relatively high and housing inventory to be relatively low. However, both of these metrics have improved in recent months, which means that the market shouldn't be as intense as it was in 2021. Home prices are also expected to rise this year but shouldn't come close to the 20% increase that occurred last year.

What the Future Indicates for Sellers
If you're looking to sell your home but worry that the market may not be favorable for doing so, the truth is that the housing market still favors sellers. The main difference is that there may not be a lengthy bidding war when you list your home on the market. However, sellers still hold ample amounts of negotiating power when an offer is made. If you want to make sure that your home is sold without delay, perform any necessary upgrades and repairs before placing your home on the market.

While it's unlikely that the housing market will shift completely to favoring buyers, it's looking increasingly likely that the market will be more balanced over the next year or so. A balanced and healthy market is great for buyers and sellers alike.

Paula Higman | Direct 435-602-8228 | paula@paulahigman.com

1153 Center Drive, G-200, Park City, Utah 84098 

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

Ensure that you have the best representation when buying and/or selling 

Connect With Us:

      

Luxury is Universal

 

When your home is marketed through international luxury websites and a global office network in 40 countries and territories, it attracts affluent buyers everywhere

• The Paula Higman Real Estate brand markets your home directly through 2,900 offices and 96,000 independent agents worldwide.
• Paula Higman Real Estate Global Luxury^® properties are syndicated to hundreds of websites, plus an additional 50+ international sites targeting high-net-worth consumers.
• Exclusive Paula Higman Real Estate luxury-focused websites have a language translator and cater to an international clientele.

Give your home a global audience.

Contact me today. +1 (435) 602-8228

         

 

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

Ensure that you have the best representation when buying and/or selling in Park City. 

Contact Paula Higman Real Estate Park City at 435-602-8228 

Connect With Us: