Visible warning signs that could spell trouble for home buyers

Buying a home in some ways is like buying a used car. Most consumers should take the time to inspect a vehicle for dings and dents, pay attention to a car’s sounds, and should look at the vehicles’ history report before making a decision. That’s where the similarities end because, unlike a car, homes typically build equity for their homeowner and it is something that can be passed down for future generations. As more people jump into the real estate market in search of their dream home, J.Christopher Real Estate Group would like to share some warning signs all home buyers should be wary of when they are touring potential properties.

“Emotions can run high for families that believe they found their dream home,” said Jarrod C. Lewis, owner of J.Christopher Real Estate Group. “While we are thrilled when we help home buyers pinpoint a home they really want, we feel it is important to mention red flags when we notice them.”

Identifying issues that can be a problem down the line serves two purposes, according to Lewis. One reason is that it can help realtors at the negotiating table. Another reason is because it can help home buyers know some of the costs they may be responsible for if they decide to proceed with the transaction.

Here are some warning signs buyers should be mindful of when purchasing a home:

Renovations are questionable

Home buyers that are impressed by kitchen, bathroom, and living room renovations should be able to see a paper trail of those updates. While it is not necessary to have a home up to city code to sell it in the market, certain code violations can be dangerous and costly to fix in the future.

Areas in the home smell strange

Typically, areas in the home that have experienced a flood will have a musty smell. Ask about the property’s history with floods and whether those issues have been resolved. Sometimes, fixing the issue could be as simple as sealing the foundation.

Some light switches don’t work

Upon entering a home, buyers might turn on a switch and no light turns on. The issue can be expensive to fix if something in the electrical box is to blame. Home buyers can narrow down the problem by checking every light switch and, if possible, asking to turn on multiple appliances at the same time.

Home touch ups are not consistent

Home sellers like to make their home more appealing by applying a fresh coat of paint when putting their home up on the market. The updates can be concerning if only specific sections of the home were painted, potentially hiding a cosmetic problem.

The neighborhood has for sale signs everywhere

Neighborhoods are important to consider because they have an impact on your home’s value. If a small detour shows you that several homes in the neighborhood are for sale or stores are going out of business, home buyers may want to consider buying a home elsewhere.

A look at the foundation can tell you a lot

A crack in the foundation may not seem like a big deal, but it can be a symptom of larger problems that could extend throughout the home years later.

While many of these issues can be immediately apparent, sometimes these signs are not easy to spot. In order to help home buyers remain completely satisfied with their purchase in the years to come, J.Christopher Real Estate Group encourages all home buyers to have a professional inspection performed. If you see a listing that has caught your attention, call us at 401-830-6906 to speak with one of our agents today.

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Use these credit boosting tips to fast-track dream of homeownership

A good credit score can mean lower mortgage rates, higher loan offer amounts

The significance of a good credit score should not be underestimated when it comes to buying a home. Besides having an impact on the mortgage rate that is offered, a good credit score can also qualify home buyers for a larger loan and as a result, a better home. Since the majority of young home buyers have average credit scores in the 650 range, J.Christopher Real Estate Group would like to share some tips that can help prospective buyers boost their credit score quickly.

“One of the first things we ask home buyers before taking them on tours is, ‘how is your credit,’” said Jarrod C. Lewis, owner of J.Christopher Real Estate Group. “We have worked with individuals who thought their finances were in order only for them to learn something damaging came up in their credit report.”

For this reason, Lewis tells individuals who are looking to buy a home to know their credit scores well and to flag anything suspicious to credit agencies as soon as possible. While a bad credit score will not automatically disqualify people from buying a home, it can cost homeowners thousands in the long run.

If you have a credit score that is below the national average and are looking for a new home, we encourage you to read the tips below so you can improve your credit score fast.

Keep your balance-to-limit ratio low

The balance-to-limit ratio refers to the difference in money owned versus the total credit limit available on a card. For instance, owing $500 on a credit card with a $10,000 limit would be seen positively. It is imperative to keep these balances in check.

Flag any errors in your credit score

Home buyers should resolve any glaring errors in their credit reports because it can influence their pre-approval offer. Sometimes an amount owed that was completely paid off will show up in a report.

Pay your bills on time

Home buyers may not know that late rent payments, car payments, and student loan payments can appear on credit scores. Since you don’t know what will be reported, it is better to assume that all late payments are being monitored.

Aim to receive pre-approval offers within 30 days

When you are shopping for mortgage rates from various lenders, home buyers should aim to acquire offers within a month so that the credit inquires themselves do not lower your credit score.

Every home buyer is unique when lenders are determining which buyers are qualified for a loan. Some will have a 20 percent down payment saved up and bad credit, and others may have the complete opposite scenario. And in both cases, they could still be qualified for a mortgage. Speak with a J.Christopher Real Estate agent at 401-830-6906 today to be one step closer to living in your dream home.

A historical look indicates R.I. real estate market will remain steady

The right time to buy depends on the individual

With property values in Rhode Island on the rise, many families may falsely believe it is not the right time to buy a home. But a historical look at Rhode Island’s real estate market indicates the housing market is simply returning to its true value and it is here to stay. As you determine whether buying a home is the right call, J.Christopher Real Estate Group would like to remind future homeowners what real estate professionals already know: the right time to buy a home is when you are ready.

The median price of a home in Rhode Island is hovering close to $260,000, RI Association of Realtors stated. Most of the increases have been attributed to a shortage of available homes, which fell from 3,569 to 3,190 from a year ago. Other large factors that are out of buyers’ control is economic growth.

“It is rare for individuals to capitalize on real estate if they are only relying on current market conditions,” said Jarrod C. Lewis, owner of J.Christopher Real Estate Group. “The real estate market goes through ups and downs, but generally home prices tend to increase as the economy improves.”

From a historical perspective

Before the banking crisis of 2008, median home prices in the Ocean State reached $282,900. Shortly afterward, prices reached a low of $190,000 in 2012, according to the Providence Journal. Some people may be concerned the same thing will happen again, but that scenario is unlikely to happen a second time because banks have drastically changed their lending practices. Specifically, subprime loans comprised 5 percent of the total market in 2015 compared to 20 percent when the housing bubble burst.

Another reason why home prices are likely to remain the same is because data from the Census of Housing shows Rhode Island home prices have traditionally increased. In 1940, home prices in Rhode Island were $40,000. Prices reached more than $60,000 in 1960. And in 1990, prices reached $170,000.

“As people earned more money and the population grew, home prices increased and that is what is happening now,” Lewis said. Furthermore, financial experts anticipate the U.S. economy to remain healthy in the coming years. Rhode Island in particular saw its economy perform better than a dozen other Northeast states, according to the Bureau of Economic Analysis.

Key indicators show that the median price of homes in Rhode Island are likely to remain the same or could increase further. For these reasons, families should go into real estate negotiations with the understanding that they are buying a home for an amount closer to its true value.

Home buyers have several options for financing a home that were not available many years ago. Whether you are looking for a single-family unit to create lasting memories or a multi-family house to build your real estate portfolio, J.Christopher Real Estate Group can help you reach your goals. Speak with one of our agents at 401-830-6906 today to begin the home buying process.

Cystic Fibrosis Great Strides Walk

We were happy to participate in the Cystic Fibrosis Great Strides walk on May 12th. Cystic fibrosis is a progressive, genetic disease that causes persistent lung infections and limits the ability to breathe over time. Great Strides is the Cystic Fibrosis Foundation’s largest national fundraising event with walks in nearly 500 cities nationwide welcoming more than 125,000 striders to support the mission to cure CF.

We were honored to walk in an effort to make CF stand for Cure Found.

Cocktails & Casino Night

Many thanks to all our sponsors for helping make this incredible event possible! We're so happy to have raised thousands for The Autism Project. Please visit our Facebook page and tag yourself and your friends!

Standing out in a crowded market

Some strategies can improve your odds of scoring a winning bid

Reports from various sources suggest that Rhode Island’s housing market is currently a seller’s market. This means homes are being snatched up quickly and at higher prices than in previous years, which WPRI reports is making it more difficult for young families to buy a starter home. While many people believe that offering the largest amount for a home is the surest way to win a bid, J.Christopher Real Estate Group assures home buyers that there are several aspects to consider that can make offers more appealing.

“When two competitive bids are presented to homeowners, they are more likely to choose the offer from the buyer that appears easier to work with,” said Jarrod C. Lewis, owner of J.Christopher Real Estate.

Lewis explains that buyers can give the impression that they will be more cooperative by making their bids objectively stand out. One way home buyers can improve their odds of their bids being noticed is by having a strong pre-approval letter from a reputable bank or lender. This indicates to the seller that the potential buyer will have the financing locked down when it comes time to finalize the sale, Lewis said.

“A concern many buyers have when accepting a bid is that the deal will fall through at the end,” Lewis said. By diminishing this variable, sellers have some assurance that the sale will be completed.

An alternative solution to get offers noticed is by removing some contingencies of the sale. “Sellers look at offers as a whole, and if an offer is contingent upon stacks of yellow tape, they will likely choose the buyer who is more open-minded about making their own repairs,” Lewis said. That being said, he suggests that buyers outline in their offer that inspections will be performed for major deficiencies only. This will let the seller know that cosmetic and maintenance issues won’t be knit-picked once inspections are completed.

Furthermore, Lewis wants home buyers to understand that the home listing price is just a mechanism to get conversations going. He says home buyers should refrain from making offers that may insult the seller because they may not have an opportunity to rescind their previous offer.

“If you can envision yourself and your family living there for a long time, buyers have the option of disclosing the most they are willing to pay for the home and can sweeten the deal by offering a down payment. This would indicate to the seller that you are serious with moving forward.”

Obviously, there are many tangibles to successfully navigate the current real estate market. Regardless of the state of Rhode Island’s housing market, the agents at J.Christopher Real Estate have the knowledge and expertise to help buyers move into their dream home. Speak with one of our agents at 401-830-6906 to schedule a home tour today.

Home Improvements are Better Spent on Curb Appeal

Some home updates provide a higher return on resale.

Famed 1930s actor Will Rogers once said, “you never get a second chance to make a first impression,” and that timeless quote could not have been more accurate for homes on sale. Needless to say, appearances are important and it should be considered when home sellers are thinking about ways to increase their home’s worth. But for homeowners who are unsure about what updates to prioritize, J.Christopher Real Estate Group has outlined several home improvements that are known for providing the best value.

“Curb appeal is usually the first thing buyers will notice when arriving for a house tour. By the time buyers walk to the door they already know whether it is a home they can envision living in,” said Jarrod C. Lewis, owner of J.Christopher Real Estate Group.

Several studies have confirmed that improving the landscape around your home either provides a dollar for dollar return or exceeds what homeowners invested. Other improvements can offer a nearly 1:1 return, but those improvements may not be the ones homeowners are expecting.

Here is a list of home improvements that provide the best value at resale.

Planting trees and plants

The National Garden Association found that homeowners could see their home value increase by 7 to 19 percent if their landscape featured a mature tree in a well-maintained yard. A separate study from Clemson University found that homeowners received 100 percent of their investment or more if they paid money towards landscaping.

Replacing the garage door

A 2018 Cost vs. Value Report by Remodeling magazine found that homeowners could expect to see a 98.3 percent return at resale if they replaced the garage door.

Pruning and maintaining your landscape

According to a survey of 2,000 realtors, researchers found that an investment of $400 to $500 can provide a return multiplied by four.

Consider the siding, add a deck

The same Remodeling report found that homeowners recouped 97.1 percent and 82.8 percent of costs associated with installing manufactured stone veneer siding and adding a deck, respectively.

Minor updates go a long way

Updating floors can provide a return value of up to $1,400. Other easy updates include repainting chipped paint and sprucing up bathrooms by applying fresh caulk and removing grout.

Make sure everything is in working order

While replacing the boiler won’t provide the return homeowners would hope for, having a dysfunctional heating system can definitely halt a sale. This applies to any essential functions that should be operational such having running water and electricity.

Before you invest in big updates that may not provide the return you were expecting, consider the projects listed above. For assistance in selling your home quickly and efficiently, speak with a J.Christopher Real Estate agent today at 401-830-6906.

Buying a home is ‘part of the American Dream’

Here’s why buying beats renting every time

In real estate, the debate has traditionally centered around whether buying or renting provides more value to the consumer. With rent prices remaining high across Rhode Island and most of the country, J.Christopher Real Estate Group can assure prospective buyers that buying a home holds significant advantages over renting in today’s day and age.

“Critics of buying real estate say that buyers will pay more because of all of the added costs of homeownership like taxes or water service, and they’ll usually fail to mention the equity buyers will build,” said Jarrod C. Lewis, owner of J.Christopher Real Estate Group.

The National Association of Realtors recently conducted a survey that found the primary reason non-homeowners do not own a home is because they cannot afford to buy one. The same survey found that the majority of renters would like to be a homeowner because they believe it is part of their American Dream.

“Many first-time homebuyers aren’t well versed in acquiring mortgages and may not know that they have different options when it comes to making a down payment on a home,” said Lewis. Furthermore, he says that renters in Rhode Island are paying an average rent that is beginning to mirror the costs associated with buying a home in the Ocean State at the median price of $265,000.

Here are some reasons why buying is more affordable, and more advantageous than renting.

Homeowners have the flexibility of remodeling their home and the associated costs are tax deductible.
As payments are made on the mortgage loan, homeowners usually build equity and recoup their down payment costs in a few years.
Buying a multi-family property allows homeowners to gain additional income that could be used towards paying the mortgage.
Several programs are available that can reduce your down payment or cap the payment to $7,500 if you are buying a home in certain areas.

To help you get started on achieving your American Dream, J.Christopher Real Estate Group encourages you see our current listings. For all other real estate questions or concerns, speak with one of our realtors by calling 401-830-6906.

The early bird gets the worm

Here’s why homeowners may have better luck selling in early Spring

It was only a few months ago that there was a severe shortage of starter homes available in Rhode Island, according to the Rhode Island Association of Realtors. With the sun starting to peek over clouds more frequently, J.Christopher Real Estate Group warns that Spring typically coincides with a spike in real estate activity that makes the market more competitive for home sellers.

Before you finalize plans to list your home later in the year, Jarrod C. Lewis, owner of J.Christopher Real Estate, encourages homeowners that they may want to move up their listing date to the first weeks of Spring. He said this will reduce the chances of your home being ignored in the wave of competitively priced homes.

“In recent years, home sellers have gravitated towards selling their home in May and that seems to work out for many people,” said Lewis. “The influx of available homes also means that sellers need to price their homes competitively, especially if they have not done updates to modernize their home.”

Here are some reasons why early Spring may be the best time to list your home.

Many renters will have extra cash from their tax refunds that can be used for their down payment.
Home sellers listing their property in the first weeks of Spring will face less competition because it is still the winter, a season that doesn’t typically see too much real estate activity.
Buyers may want to get a head start on buying a home because they also will face more competition for starter and mid-priced home. With less competition, they can avoid a bidding war with other buyers.
Grass, leaves, bushes, and trees start looking alive which provides good scenic photography for your property, and can lead to a quicker sale. Upkeep is usually kept to a minimum as well because leaves are just beginning to sprout.
Realtors that are brokering both sides of the transaction can give you undivided attention because there are less tour requests happening.
The temperature on some days are just right, and that will encourage buyers to tour homes that are well priced. They understand that waiting too long could make your home out of their price range.

Homes in the Ocean State are sold year-round, but rising temperatures do play a role in the sale of a home. If the reasons above have spurred you to jump start your listing, speak with a J.Christopher Real Estate agent at 401-830-6906 and begin scheduling tours today.

Cost saving tips to stay warm this winter

A rush of arctic air from the Rocky Mountains in late December left most Rhode Islanders shivering from the cold and scrambling for ways to heat up their homes. The long streak of bitter cold may have forced some homeowners to consider installing insulation throughout their walls and attics, but J.Christopher Real Estate Group has several suggestions that can help you hold on to your savings while staying toasty.

Jarrod C. Lewis, owner of J.Christopher Real Estate, explained that most Ocean State residents would benefit from knowing cost effective ways to heat their homes. “Home buyers are sometimes reluctant to buy homes that that have not been optimized for the cold without realizing there are other ways to ensure heating systems are efficient,” Lewis said.

The cost of professionally insulating a roof for an average size home hovers around $2,000, and that doesn’t factor in the costs of insulating walls in living spaces. In addition, homeowners may have to wait until next season because most of these renovations are usually done in the summer or fall.

With the potential of another cold spell coming soon, J.Christopher Real Estate Group understands the urgency to prepare for the cold, and we could like to recommend some alternative heating solutions.

Caulk your windows to prevent cold drafts from entering your home. The air tight seal can also help trap heat in your home.
Apply weather stripping to the inside of your windows and doors. Heat is bound to escape from your home, but did you know that 30 to 40 percent of that heat escapes from air leaks? By sealing those main entryways, you are helping to trap warm air while also using less energy to continuously heat your home.
Install thermal, insulated curtains to reduce heat loss by as much as 25 percent, according to the U.S. Department of Energy. It is advised to leave the curtains open while the sun is pointing towards the window, and closing them after the sun is out of view to keep more warmth indoors.
Consider installing a programmable thermostat that could be turned up before you arrive. Do not completely turn off the thermostat on chilly days or nights because this can lead to frozen pipes, potentially costing homeowners thousands of dollars in repairs. When used correctly, thermostats can save individuals 10 percent on their heating bill, according to the U.S. Environmental Protection Agency.

Before the stinging cold reaches your home, consider the suggestions above to save money and make your home more inviting. For other home improvement solutions or other real estate concerns, speak with a J.Christopher Real Estate agent.