Why This Time of Year is Perfect for 1031 Exchanges in Real Estate If you’re thinking about making some moves in real estate, now might be the perfect time to consider a 1031 exchange. This time of year is especially popular for 1031 exchanges, which are a way to swap one property for another without paying taxes on the profit right away. It’s like trading in your old car for a new one, but with real estate! Let’s break it down in a simple way. What is a 1031 Exchange? A 1031 exchange is a special rule that lets you sell one property and buy another without paying taxes on the money you make from the sale. Normally, when you sell a property and make a profit, you’d have to pay taxes on that money. But with a 1031 exchange, you can use that money to buy a new property and put off the taxes. This rule helps investors grow their real estate portfolio without paying taxes each time they make a profit. It’s like having a tool to help you build more wealth! Why is This Time of Year Popular for 1031 Exchanges? The end of the year is often a busy time for real estate deals. People want to close transactions before the year ends for tax reasons, and investors might be looking to do a 1031 exchange to take advantage of the benefits before the year wraps up. It's a great time to make sure everything is in order and to find that perfect property to exchange into. Plus, real estate markets can slow down during the holidays, meaning you might have more time to make decisions and find a great deal. How Our Team Can Help You with 1031 Exchanges At Christians Team Real Estate, we know how important it is to find the right properties for a 1031 exchange. But here’s something special about our team: we have pocket listings. These are properties that we have for sale, but they aren’t listed on the regular public market. They’re like hidden gems that only a select group of people know about. What Are Pocket Listings? Pocket listings are properties that are available but not advertised to the general public. They can be a great option for investors because sometimes these homes or commercial properties can be less competitive and more affordable. Because they’re not on the open market, you might find something that suits your needs and budget better than other properties that are listed online. Why Work with Us? When you work with Christians Team Real Estate, you get access to these pocket listings and the insider knowledge of our agents. We know the best deals in town, and we can help you find properties that are perfect for your 1031 exchange. Our team works closely with you to make sure you’re getting the most out of your investment. We’ll help you identify properties that match your goals, and we’ll make sure you know about opportunities that others might miss. Ready to Start Your 1031 Exchange? If you’re thinking about doing a 1031 exchange or just want to learn more about how it works, give us a call! We’re here to help you find the right properties, including those hidden gems, and guide you through the process. Whether you’re looking for your next real estate investment or want to explore off-market properties, our team has the tools and knowledge to help you succeed. Let’s work together to find the perfect property for your 1031 exchange today!

  The real estate market is driven by the principles of supply and demand, and few factors influence these dynamics as much as mortgage rates. The historic lows in mortgage rates experienced during the COVID-19 pandemic created unique conditions that still impact today’s housing market. For areas like the Black Hills of South Dakota—spanning Rapid City, Spearfish, and surrounding communities—these trends have significant implications for both buyers and sellers. The “Lock-In Effect” and Its Impact on Supply During 2020 and 2021, mortgage rates dipped to an unprecedented 2% to 3%, fueling a buying frenzy. According to Realtor.com, over 21% of outstanding mortgages as of late 2024 still carry rates below 3%, and 83% are below 6%. Homeowners who locked in these low rates are now reluctant to sell, creating a “lock-in effect” that limits the number of homes available for sale. In markets like the Black Hills, where inventory is already tight, this trend exacerbates the shortage of homes on the market. With fewer homeowners willing to trade their low-interest mortgages for today’s higher rates—currently hovering near 7%—supply remains constrained, intensifying competition among buyers. How Demand Is Affected Despite higher rates, demand for homes in the Black Hills remains strong. Areas like Spearfish and Rapid City attract buyers seeking scenic beauty, outdoor activities, and a high quality of life. However, affordability is a growing concern as higher mortgage rates increase monthly payments. For example, a buyer looking at a $500,000 home in Spearfish would pay significantly more in monthly payments at today’s rates compared to the historically low rates of 2021. This affordability gap has left many buyers waiting for rates to stabilize. A recent Realtor.com survey revealed that 40% of potential buyers would consider entering the market if rates dropped below 6%, and 32% would jump in if rates hit 5%. Black Hills Market Outlook As homeowners hold onto their low-rate mortgages, the limited supply in the Black Hills could keep home prices elevated, even with fewer transactions. This means buyers may face stiff competition for available properties in desirable areas like Rapid City and Spearfish. For sellers, these conditions create an opportunity to command premium prices, especially if their homes are in prime locations or offer unique features. However, those considering selling must weigh the trade-off of losing their low-rate mortgage. Looking ahead, easing inflation and falling mortgage rates could unlock more inventory. If rates were to dip below 6%, we could see increased seller activity in the Black Hills, helping to balance the market. A Strategic Approach to Buying or Selling Understanding the nuances of today’s real estate market is crucial. Whether you’re considering buying or selling in the Black Hills, working with an experienced real estate team can help you navigate these challenges. Our team at Christians Team Real Estate is here to provide expert guidance and insights tailored to your needs. For more information on current trends and how they shape markets across the country, check out the full report on Realtor.com. Are you ready to explore opportunities in the Black Hills? Contact us today for personalized advice and market updates.

For the first time since 2020, housing affordability improved year over year. This is largely due to a drop in mortgage rates, which have dipped from 7.07% to 6.09% over the past year. While this is undoubtedly great news for home buyers, affordability remains a challenge for many.  According to recent data, U.S. buyers now need to earn around $115,000 annually to afford the typical home, down 1.4% from last year. Yet, the average U.S. household earns only about $84,000 annually—27% less than what's needed to buy a median-priced home.  Because of this, many buyers are finding themselves in positions where compromise is a necessity. But that doesn’t mean homeownership is off the table. Navigating these compromises smartly can help ensure you still get a home you love without overspending or sacrificing too much on your wish list. Let’s dive into the most common compromises homebuyers are making in 2024, and how you can make decisions that work best for you. The Top Compromises Buyers Are Making Homes.com and Apartment Therapy recently conducted a survey on “The State of Home Buying,” asking 676 recent and prospective buyers, along with real estate professionals, about the home buying experience. According to the survey, here are the top compromises being made during the home search today: Condos and Townhomes are Growing in Popularity With single-family homes becoming less attainable for many, a significant percentage of buyers are shifting their focus to other property types. For those with a budget of less than $500,000, about 17% are now looking at condos and apartments, while 15% are exploring townhomes as an alternative. These property types often provide more affordable options for buyers in desirable locations or those seeking to stay within budget. While a condo may not offer the spacious yard or privacy of a single-family home, it can provide a low-maintenance lifestyle with access to shared amenities like gyms and pools. Of course, when looking at a condo or townhome, you’ll need to factor in any HOA fees to your monthly payment. Location, Location…Compromise? It’s no surprise that location is a top priority for homebuyers. But as prices rise in sought-after neighborhoods, many are adjusting their searches. Recent buyers report that they were willing to widen their search area to find homes that fit their budget. In fact, 21% of buyers purchased outside their ideal neighborhood, and a third of current buyers are considering doing the same. Being open to different areas can make all the difference in a competitive market. Expanding your search radius just a few miles can open up more affordable options that still meet your needs. How to Make Smart Compromises Without Regret Knowing where to compromise — and where to stand firm — is key to navigating today’s housing market. Here are some tips to help you make informed decisions: 1. Prioritize What You Can’t Change While it may be tempting to focus on cosmetic features like flooring or paint color, those are often the easiest and most affordable changes you can make after purchasing a home. Instead, focus on the non-negotiables that are difficult to alter, such as the home’s layout, structural integrity, and location. 2. Keep Your Future Needs in Mind As you search for a home, think about your current lifestyle and your future needs. Will this property suit your needs for the next five to ten years? Buying a condo now may seem like a great way to stay within budget, but if you’re planning to expand your family or want more space in the near future, it could lead to another home search sooner than anticipated. 3. Stick to Your Budget While it may be tempting to stretch your budget to get a home you love, overextending yourself financially could lead to significant stress down the road.  Determine your monthly housing budget—and when looking at properties, be sure to factor in everything from your mortgage interest and principal, property taxes, homeowners insurance and HOA fees. Sticking to your budget ensures that you’re prepared not only for these payments but also for unexpected expenses that may arise after you move in. Compromise Doesn’t Have to Mean Settling By focusing on what truly matters — like location, structural integrity, and your long-term goals — and remaining flexible on other aspects, you’ll be well-positioned to make a smart purchase. And remember, working with an experienced real estate agent can provide valuable insights and guidance throughout the process, helping you make decisions with confidence. In the end, buying a home is about finding the right balance between compromise and fulfillment — and with careful planning, your next home could be just that.

By now, you’ve probably heard about the news: the Federal Reserve recently cut interest rates for the first time in four years.  But what does that really mean for home buyers and sellers? You might be wondering how this impacts mortgage rates, home prices, or your ability to make a move in today’s market. Understanding these changes could be your key to making smart real estate decisions—so let’s break it down. A Closer Look at the Fed’s Decision On September 18, 2024, Fed Chair Jerome Powell announced during his press conference that “We have in fact begun the cutting cycle now.”  The Fed began its rate-cutting cycle with a half percentage point (50 basis points) reduction. This decision was expected, and experts believe more cuts could be made before the end of the year. Keep in mind that the Fed doesn’t directly control mortgage rates. However, its decisions influence the financial markets, which is why mortgage rates started to drop this summer. Over the past year, we saw mortgage rates as high as 7.79% (October 2023), but they’ve recently fallen to around 6.20% (September 2024).  For you, this could mean better affordability when buying a home or more opportunities if you're planning to sell. How do mortgage rates impact purchasing power? The recent decline in mortgage rates works in favor of buyers.  Lower mortgage rates mean you can afford more house for the same monthly payment. In fact, a 1% drop in mortgage rates can significantly boost your buying power. According to Realtor.com, “a buyer who budgeted to buy the typical home in 2023 now has an extra $70,000 in home purchasing power for the same monthly cost.”  Those sticking to a house at the same price point can see significant month-to-month savings. Mortgage rate shifts have led to $300 monthly savings compared to May 2024 and $340 savings compared to October 2023, assuming a 20% down payment on a typical home purchase.  That’s a big deal for buyers. Will mortgage rates continue to decline? No one expects mortgage rates to take a nosedive. In fact, after Powell’s press conference, mortgage rates actually increased slightly—from 6.15% to 6.17%, according to Mortgage News Daily.  Zelman & Associates’ managing director Alan Ratner explained why in a recent interview, which took place before the Fed’s rate cut. He stated that the early September drop in rates was due to the “mortgage market already pricing in a Fed easing cycle.”  “We’ve seen mortgage rates already pull back roughly 100 basis points from the high, so the Fed simply announcing this week…that shouldn’t have too much of an impact on the mortgage market,” Ratner said.  However, that doesn’t mean rates will go up, either. Ratner continued, “Over time, we do expect to see rates gradually decline as inflation remains tame.” While there may be some fluctuation in rates, other experts agree that rates will likely continue a downward trend over time. Mark Zandi, chief economist at Moody’s, believes that “the 30-year fixed mortgage rate will be closing in on 6.0% by the end of the year and settle in near 5.5% by the end of 2025.”  In addition, Fannie Mae revised its mortgage rate forecast and now expects mortgage rates to decline to 5.7% by the end of 2025.  Will the lock-in effect finally break? One of the biggest challenges for the housing market over the past two years has been the so-called “lock-in effect.” Homeowners who locked in ultra-low mortgage rates during the pandemic have been reluctant to sell, knowing they’d have to take a new mortgage at a higher rate. But with mortgage rates now trending downward, this effect might start to ease. As Powell pointed out during the press conference, “As rates come down, people will start to move more, and that is probably beginning to happen already.”  This shift could lead to more inventory hitting the market, but Powell was careful to note that this wouldn’t necessarily create a surge in demand. “When that happens, you’ve got a seller, but you’ve also got a new buyer in many cases. So it is not obvious how much additional demand that would make,” he said. Will home prices go up or down? The question everyone wants an answer to is whether home prices will rise if more buyers take advantage of lower mortgage rates. Powell addressed this concern, saying, “The housing market, it’s hard to game that out… The real issue with housing is that we have had, and are on track to continue to have, not enough housing.” In other words, even as nationwide inventory has seen an increase, supply constraints are still a major issue. The supply of homes plays a huge role in determining prices. So, while more buyers may enter the market if mortgage rates decline, the overall impact on prices will depend on how much inventory is available.  Final Thoughts The Fed’s recent rate cut is a big deal for the housing market. While it’s hard to predict exactly how things will unfold, one thing is clear: lower mortgage rates are creating opportunities. If you want to dive into local data for The Black Hills, or are interested in what today’s mortgage rates mean for you, reach out here to schedule a discovery call 605-340-0768.

No matter how many elections you’ve lived through, each one can feel a bit like a wildcard when November draws near and you’re wondering whether you should make a move—or wait until the dust settles.  Generally speaking, presidential elections have only a small and temporary impact on the housing market. That said, it’s natural to be curious as to how an election could impact your decision to buy or sell a home this year.   So, here’s a quick rundown of what you can expect from this year’s election, based on what has happened in election years past.  How do Elections Impact the Housing Market? Home Sales For the past several election years, November has typically brought a slight slowdown in U.S.  home sales. Ali Wolf, Chief Economist at Zonda, confirms that while home sales are generally unchanged during an election year, November is slower than normal.    That temporary downtick is mainly due to people feeling uncertain and hesitant about making a big decision (like buying or selling a home) when they perceive an election’s outcome could have a real impact on their financial situations or where they want to live next.    It’s a pivotal time. It’s also short-lived. Home sales generally bounce back in December and continue to climb the following year.    In fact, according to data from the Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR), after nine of the last 11 Presidential elections, home sales increased the following year.    Home Prices According to Bankrate, home price appreciation during past election years has outpaced that of the surrounding non-election years.    A Bankrate analysis of Case-Shiller data shows home prices rose an average of 4.84% in the nine election years we’ve had since 1987, compared to an average 4.44% in the 28 non-election years.    Based on that, you might think presidential elections are good for the housing market. The reality is a bit more complicated.  Home price appreciation by year from 1987 to 2023 (election years in bold font): 1987:  7.22% 1988:  7.23% 1989:  4.39% 1990: -0.69% 1991: -0.17% 1992:  0.82% 1993: 2.16% 1994: 2.52% 1995: 1.79% 1996: 2.43% 1997: 4.02% 1998: 6.44% 1999: 7.68% 2000: 9.29% 2001: 6.68% 2002: 9.56% 2003: 9.82% 2004: 13.64% 2005: 13.51% 2006: 1.73% 2007: -5.40% 2008: -12.00% 2009: -3.85% 2010: -4.11% 2011: -3.88% 2012: 6.44% 2013: 10.71% 2014: 4.51% 2015: 5.20% 2016: 5.31% 2017: 6.21% 2018: 4.52% 2019: 3.68% 2020: 10.43% 2021: 18.87% 2022: 5.65% 2023: 5.56% In recent decades, the worst election year by far for the U.S. housing market was 2008. Home values that year plunged 12% as the historic housing bubble of 2004–2007 finally burst. The housing market crash had nothing to do with the tension surrounding the election. It was all thanks to horrendous economic timing. The global economy was collapsing. The silver lining was the suddenly gigantic room for improvement.  Granted, this is the one election year in the past few decades when home price appreciation was actually down from the previous year (from -5.40% to -12.00%).  The best year for home price growth since 1987 was 2021, when home values skyrocketed 18.9% amid record-low mortgage rates during the pandemic housing boom. Again, the extreme housing market conditions that year had nothing to do with a new president taking office.    Mortgage Rates Mortgage rates are a big deal because they determine how big your monthly payment will be when you buy a home. So, it’s natural to want to know whether these rates tend to go up or down during an election year—or what you can expect with rates before and after an election.    Based on data from Freddie Mac, mortgage rates have declined from July to November in eight of the past 11 presidential elections.    Moving on to the aftermath of this year’s election, most housing market forecasts show mortgage rates easing slightly throughout the remainder of 2024 and into 2025. Assuming they’re correct, this year will continue the trend of declining interest rates leading up to the election—and keep rates on a downward trend in the months to follow.    Lower rates can translate into lower monthly payments. But lower rates also mean more buyers are likely to enter the market.    That means buyers who wait for rates to fall below 6% will likely encounter fierce competition for available homes, driving up home prices and all but eliminating concessions that could make the home more affordable.    Final Thoughts While presidential candidates often hype up the economic plans they have for their first year in office, economists tend to agree they have little to no influence over the housing sector. Doesn’t mean they won’t try to convince you otherwise.     The housing market may seem confusing right now (even if you’re not sweating the election), but with the right information and a focus on local data, you can navigate it confidently.  For an even more personalized data report for your home or neighborhood, reach out to us. 605-340-0768.

A little backstory:  Back in March, the National Association of Realtors (NAR) agreed to a settlement deal. The organization agreed to both a monetary settlement as well as real estate practice changes aimed at providing more transparency regarding how real estate agents are paid.  But how exactly does that change things for you? There are two main differences you may be hearing about: Offers of compensation for buyer brokers or buyer agents can no longer be made on the Multiple Listing Service (MLS). Real estate agents must enter into a written agreement with a homebuyer before giving them a tour of a property. Headlines might make these changes seem overwhelming. And while some of the paperwork is new, the reality is that the majority of professionals in the industry will continue to provide the same service they always have. To help you get a better understanding of what this means for you, here are six key things home buyers and sellers should know about the changes going into effect on August 17, 2024.  What Changes Mean For Homebuyers #1—Homebuyer Agreements Your real estate agent needs to have a written agreement signed before they can show you homes. This doesn’t mean you are locked in for life—some agreements can be for one property, some for one week, and some for a longer period of time.  Be sure to ask about the different options available when interviewing buyer agents, and make sure you understand exactly what services are included. #2—Know What You're Paying For This agreement will clearly outline your agent's compensation. If the agreement is not specific, or if you have questions, ask for clarification (and get it in writing) before signing anything.  And, just like before, agent fees are negotiable. This settlement doesn't change that. #3—Seller Deals Still Exist Sellers can still offer to cover some of your closing costs, and even the buyer agent fees, as an incentive. While you won't see the seller’s offers to buyer agents on the MLS listings anymore, that doesn't mean they're gone. Your agent can find out if the seller is offering buyer agent compensation (or negotiate for it should you decide to make an offer on a property).  What Changes Mean For Home Sellers #1—The Power of Choice You’re still in control! You can decide if you want to offer compensation to buyer brokers. When interviewing your listing agent, ask about the pros and cons of offering buyer agent compensation to help you determine what the best option is for your situation.  #2—Transparent Terms Your listing agent must obtain your approval before making any offer of payment to buyer brokers. If you choose to offer compensation, the terms must be transparent and made in writing—including how much and how it will be paid.  #3—MLS Dos and Don’ts As a seller, you can no longer put offers of buyer broker compensation on the MLS. (This must happen off MLS.) However, you can still offer buyer concessions on the MLS, like buyer closing costs.  Final Thoughts These changes are designed to make the process of agent compensation when buying or selling a home more transparent. That being said, there are going to be different options available, so it’s important you take the time to understand them all. By working with a knowledgeable real estate agent, you can ensure that your home buying or selling experience is positive and successful.  For more information about these changes, visit facts.realtor  or reach out to one of our sales agents.

When it comes to selling your home, making a great first impression is crucial. But what if you don't have the budget for a major renovation. Luckily, new data from Zillow and Thumbtack reveal that you don't need to break the bank to boost your home's appeal. "Certain low-lift projects can deliver a high payoff because they elevate a home in the mind of a buyer," said Amanda Pendleton, Zillow's home trends expert.  Here are the top 10 no-demo renovation projects of 2024 that can make your home stand out in the market and attract more buyers. #1—Window Box Who doesn't love a pop of color and greenery? Window boxes are a classic way to enhance your home's curb appeal. These charming containers for flowers, plants, or herbs can be installed just below the window sill, instantly bringing new life to your home’s exterior.  Zillow stats: Homes with a window box receive 48% more saves and 52% more shares per day compared to similar homes without this feature. Average national cost: $100 to $150 for professional installation and $15-$900 for materials   #2—Open Shelving Open shelving has become a hot trend in home decor, with closet systems and shelving installations up 31.5% year over year according to Thumbtack. It's a great way to display your favorite items while creating an airy and modern look. This project can be a DIY endeavor or you can hire a professional for a custom built-in. Zillow stats: Homes with open shelving receive 37% more saves and 45% more shares per day compared to similar homes without this feature. Average national cost: $275 for professional installation (excluding the cost of shelves)   #3—Painted Brick If you have a brick exterior, consider giving it a fresh coat of paint. A new color can completely transform the look of your home and increase its curb appeal. Zillow stats: Painted brick homes receive 31% more saves and 39% more shares per day compared to similar homes without fresh paint. Average national cost: $4,600–$7,600, including labor, material and equipment   #4—Vintage Charm Vintage elements can add a unique touch to your home. Think about incorporating vintage light fixtures, hardware, or even furniture. Not only does it add character, but it can also save you money compared to buying brand new items. Zillow stats: Homes with vintage touches receive 28% more saves and 31% more shares per day on Zillow compared to similar homes without them. Average national cost: Vintage decor costs vary, but you can find great pieces for less than $100. Vintage crown molding, for example, costs between $2 and $50 per linear foot and can make ceilings appear higher while adding architectural interest.   #5—Outdoor TV An outdoor entertainment area can significantly boost your home’s value. One easy way to create this space is with an outdoor TV. Installations have risen 12.7% year over year, making it a popular addition for many homeowners. Zillow stats: Homes with an outdoor TV get 28% more saves and 26% more shares per day than those without.  Average national cost: $175-$200 (this can increase depending on electrical capabilities and weatherproofing)   #6—Picket Fence It may be part of “The American Dream” stereotype, but a white picket fence is a timeless feature that continues to boost curb appeal. Added bonus: it provides a fenced-in yard for pets, a feature many buyers appreciate.  Zillow stats: Homes with a picket fence receive 27% more saves and 31% more shares per day than yards without a fence. Average national cost: $7–$45 per linear foot   #7—Pergola As outdoor living becomes more important (and summers hotter and hotter), adding a pergola can provide much-needed shade and a stylish gathering space. Zillow stats: Homes with a pergola get 20% more saves and 24% more shares per day than those without.  Average national cost: $3,600 for a 10-by-10-foot pergola, including labor and materials   #8—Fire Pit A fire pit can make your backyard a cozy retreat for summer nights. This DIY-friendly project can be completed at a low cost, providing an inviting outdoor feature. Zillow stats: Homes with fire pits see 19% more saves and 23% more shares per day than those without.  Average national cost: Under $1,000 (depending on the kit purchased) #9—Outdoor Sound System A sound system is another way to start (or add to) an outdoor entertainment area. A little music can help set the tone for any type of gathering. If you bundle this project with an outdoor TV, it could help you save on labor costs, as they can be set up at the same time.  Zillow stats: Homes with this feature see 18% more saves and 19% more shares per day. Average national cost: $500-$2,000 depending on the system #10—Smart Lighting Upgrade your home's lighting with smart technology. This modern feature can make your home more attractive and functional. Zillow stats: Homes with smart lighting get 18% more saves and 23% more shares per day than those without.  Average national cost: $308 for installation Conclusion These projects can make a significant impact on your home's appeal and market value. And the best part is, no reno needed!  “These features bring a wow factor to a home or they serve as a signal that a home is up-to-date, well-maintained or move-in ready,” said Pendleton. “When it's time to sell, these features may ultimately help a home sell faster or for more money, because there will likely be more competition for that home among buyers.” Whether you're looking to sell soon or just want to enjoy some new features, these upgrades are worth considering. Remember, small changes can make a big difference!

Thinking about sprucing up your home? Whether you're planning to sell soon or just want to enhance your living space, remodeling can be a great investment. But not all projects offer the same return—especially since home repair costs have risen 40% since 2019.  I know remodeling costs today can be disheartening, but the experts at Zonda, a housing market research firm, just released their 2024 Cost vs. Value Report, and it's packed with insights to help you maximize your return on investment (ROI). Curb Appeal is King When it comes to boosting your home’s value, exterior improvements are where it's at. According to Zonda, eight out of the top ten projects with the highest ROI are exterior upgrades.  Why? Because first impressions matter. A home with great curb appeal can stand out in the market, attracting more buyers and potentially selling for a higher price. According to Clay DeKorne, Zonda’s chief editor, exterior replacement projects continue to make the most sense when it comes to adding resale value. In today’s market, characterized by higher mortgage interest rates and homeowners with significant equity, these projects stand out for their high ROI. Cost vs. Value: National Average for Home Remodeling Projects Below are all of the home remodeling projects that Zonda analyzed for its report, ranked by highest return on investment.  Top 3 Projects with the Highest ROI This year’s report shows that the hottest projects for maximizing your ROI are actually the "unsexy" ones – the things that maybe don't grab headlines but definitely grab buyers' attention.  Just take a look at the top three on the list, each of which has an ROI well over 100%. Garage Door Replacement: 194% ROI. This project tops the list, almost doubling its return from last year. A new garage door can dramatically improve your home’s exterior look, making it more attractive to buyers. Steel Entry Door Replacement: 188% ROI. Replacing your front door with a steel one doesn’t just boost security; it also enhances the overall appearance of your home. It’s a simple upgrade with a significant payoff. Manufactured Stone Veneer: 153% ROI. Adding stone veneer to your home’s exterior can give it a luxurious and durable look. This upgrade is not only stylish but also highly valued by homebuyers. For those looking for small projects with a big impact, doors are a great place to start. "A new garage door or new entry door can make a pronounced difference," says Todd Tomalak, principal of Zonda Advisory. "It could be the thing that makes one house stand out against all the others, making the home worth a higher price." Of course, there are other not-so-glamorous upgrades that can add value. Things like a new roof, windows replacement, and HVAC conversion also made Zonda’s list.  Key Takeaway While a luxurious kitchen remodel might be your dream, the data suggests it won't necessarily pay off as much when it comes to resale value. That doesn't mean you can't enjoy a new kitchen! But if you're focused on maximizing your return on investment, target those exterior improvements and strategic interior updates first. Ready to get started with some upgrades but don’t know where to start? We have a contact list full of trusted vendors, pre-vetted for quality and affordability. These are the folks we call on and we're confident they can help you achieve your home improvement goals!

A recent study by Fannie Mae revealed a surprising lack of confidence among consumers about the mortgage process.   There’s good reason to feel a little cautious. Here in the Valley, home prices have risen 59% since 2020, and mortgage rates have also climbed. However, homeownership remains a top priority for most, with many considering it a sound long-term investment.   All of this can lead to feeling overwhelmed and unsure of your ability to qualify for a home loan. The good news is there are options available—options you may not even be aware of.    So today, we’ll discuss some different mortgage resources available here in the Black Hills.   Challenges When Navigating the Mortgage Process   Fannie Mae’s study found that many consumers are unaware of important aspects of the mortgage process, which creates additional hurdles.    Here are the top three challenges consumers face due to knowledge gaps:   Lack of confidence: Less than half (45%) of consumers would feel confident going through the mortgage process. That number drops to 38% for those who are actively home shopping. Overestimating minimum down payment: 90% of consumers either don’t know or overestimate the minimum down payment required for a typical mortgage. Misestimating minimum credit score: Only 32% of consumers know the approximate minimum credit score required by mortgage lenders (the FICO minimum score required is 620). The remaining either overestimate or underestimate this number.    The study also found that just 32% are “somewhat” or “very” familiar with low down-payment programs, and 40% are aware of mortgage counseling services available.    To make sure that you have all the information you need, keep reading for mortgage resources available here in Arizona.  Mortgage Resources in South Dakota Low Down Payment Assistance Programs You may know that a 20% down payment isn’t required, but how low can you go? In some cases, as low as 0-3% down. Here are some programs available in SD: FHA Loan Federal Housing Administration (FHA) loans are popular for first-time homebuyers, offering low down payments and more flexible credit requirements. VA Loan Veterans Affairs (VA) loans are available to military service members, veterans, and eligible surviving spouses, offering no down payment options and favorable terms. USDA Loan United States Department of Agriculture (USDA) loans are available to eligible rural and suburban homebuyers, offering no down payment options. South Dakota Housing Development Authority (SDHDA) Programs SDHDA offers various loan programs, including the First-Time Homebuyer Program, which provides low down payment options and assistance for first-time homebuyers. HomeReady Mortgage Fannie Mae’s HomeReady mortgage program offers low down payments, flexible underwriting, and homeownership education for low-to-moderate income borrowers. Home Possible Mortgage Freddie Mac’s Home Possible mortgage program is designed for low-to-moderate income borrowers, offering low down payment options and flexible credit requirements. Good Neighbor Next Door The Good Neighbor Next Door program offers substantial discounts for law enforcement officers, teachers, firefighters, and emergency medical technicians to purchase homes in revitalization areas. WISH Program The Workforce Initiative Subsidy for Homeownership (WISH) Program offers down payment assistance to eligible low-to-moderate income first-time homebuyers. Rural Development Loans USDA Rural Development Loans provide low down payment options for eligible rural homebuyers, offering affordable financing solutions. Reach out to a lender you work with to explore each option to find the best fit for your needs.  No lender? email us for a list of local lenders.  Mortgage Counseling Services Housing counseling or mortgage counseling services are also available to help you prepare your finances and get ready for the costs of home ownership.  Freddie Mac Borrower Help Centers (select your region for a list): https://myhome.freddiemac.com/resources/working-with-freddie-mac-borrower-help-centers Search for HUD’s participating housing counseling agencies in your area here: https://answers.hud.gov/housingcounseling/s/?language=en_US Professional Lenders Reading about these programs and services online is one thing, but I always recommend speaking with a knowledgeable, trusted professional to gain a deeper understanding of all the resources available to you. Let me know if you’d like my list of vetted mortgage lenders, and I’ll send them right over.  Remember, the key to a successful homebuying experience is knowledge and preparation. By getting the right support system in place, you can turn your dream of homeownership into a reality.

When it comes to long-term investments, Americans have a clear favorite: real estate.    According to a recent Gallup poll, 36% of Americans believe real estate is the best long-term investment, outpacing stocks (22%), gold (18%), savings accounts (13%), bonds (4%) and cryptocurrencies (3%).   Why is that the case? Let’s dive into why so many people believe that owning property is the ultimate way to build wealth over time.  The Popularity of Real Estate as a Long-Term Investment For 11 years running, real estate has consistently topped the list of preferred long-term investments in Gallup’s annual Economy and Personal Finance survey.    This preference for real estate is driven by several factors:   Tangible Asset: Unlike stocks or bonds, real estate is a tangible asset that you can see and touch. This physical presence provides a sense of security that is hard to match. Appreciation Over Time: Historically, real estate values have shown steady appreciation. From the 1990s to the 2020s, home prices have consistently increased, making real estate a reliable investment. Dual Benefits: Owning a home provides not only potential financial returns but also a place to live. This dual benefit is unique to real estate and adds to its appeal.   Gallup’s poll found this preference holds true across all income levels, with 33% of lower income households stating they believe real estate is the best long-term investment, along with 36% of middle income households and 40% of upper income households.    Real Estate vs. Other Investments   While real estate is the top choice for many, it’s important to consider how it stacks up against other investments. Stocks, for example, have historically offered higher returns. From 1990 to April 2024, the S&P 500 surged by 1,325%, while the S&P CoreLogic Case-Shiller U.S. National Home Price Index rose by 308%. However, stocks come with higher volatility. Real estate, on the other hand, tends to provide more stable growth. Even during economic downturns, such as the Great Financial Crisis of 2008, real estate has shown resilience and recovery. This is highlighted when you look back at U.S. home price growth by the decade. (Note: link to this article on your website if you posted previously).     U.S. home price growth by decade: 1990s: +30.1% 2000s: +47.3% 2010s: +44.7% 2020-2024: +47.1%   Locally, home prices have risen 4.81% over the past year, and 46% since 2020.  Is Real Estate the Right Investment for You? Real estate can be a fantastic long-term investment, especially in a growing market like the Black Hills.  But before diving in, consider your individual situation:   Long-Term Commitment: Buying a home is a long-term play. If you plan to move in a few years, it might not be the best fit. Financial Strength: Real estate requires a down payment, closing costs, and ongoing maintenance expenses. Make sure you have a solid financial foundation. Investment Goals: Consider your overall investment goals. If you prioritize high returns and easy access to your money, another investment might be a better fit.   And keep in mind that diversification leads to a balanced investment strategy. Financial experts recommend spreading investments across various assets to hedge against different market forces and increase the odds of a net profit over the long term. This means integrating real estate within a broader portfolio that includes stocks, bonds, and other investment vehicles.    Bottom line: While poll results show that Americans prefer real estate as a long-term investment, there is no one-size-fits-all answer. Always consult with your financial advisor when planning to invest for your future, as the best option depends on your financial goals, risk tolerance, and investment timeline.

There’s nothing like the moment when you’ve found your dream home. It’s easy to get caught up in the excitement and make moves to finalize everything as quickly as possible. And while timeliness is important, it can lead to mistakes that end up costing you thousands.    Here are the four biggest mistakes people make when securing a mortgage loan.  Mistake #1—Not Shopping Around for Mortgage Offers It's tempting to go with the first mortgage offer you receive, especially when you're eager to close the deal on your new home. According to a LendingTree study, the majority of people (54%) do just that—they only get one offer.    Jacob Channel, Lending Tree senior economist, explains why this is a mistake. “Different lenders can offer different rates to the exact same borrower. With that in mind, the first rate you’re offered may not be the lowest one you can get. The more offers you can look at, the better.”   Think about it: if you only go to one store to compare prices, wouldn't you miss out on potential savings? The same goes for mortgages!  Different lenders offer different rates, and even a small difference in interest rate can translate to significant savings over the life of your loan. The same LendingTree study found that 45% of those who did shop around for a mortgage ended up with a better offer. This means almost half of the buyers who took the time to compare multiple offers saved money.    We recently assisted a couple in buying their first home. By connecting them with three trusted lenders, one was able to save them over $9,400!  How did a lender do this? They had no lender fees, shopped the best rates and loan type for our clients. Mistake #2—Relying Solely on Recommendations It's great to trust your real estate agent's recommendations. After all, we work to build strong relationships with lenders and vendors to best serve our clients. However, if your agent only recommends one lender, it can limit your options. Each lender will have different options and tools for securing a mortgage.    The lenders we recommend each provide distinct advantages and strive to secure the best loan for you. While we can’t predict which will offer the lowest rate for a specific loan, it’s essential to review options with each one to ensure you get the best deal.   Aim to get at least two different mortgage offers to compare. Diversifying your lender options can help you find competitive rates and better terms. Mistake #3—Ignoring Different Loan Types   Not all mortgage loans are created equal. Beyond the typical 30-year fixed-rate mortgage, there are various loan types like adjustable-rate mortgages (ARMs), FHA loans, VA loans, and USDA loans, each with its benefits and drawbacks. Ignoring these options might mean missing out on a loan that could better suit your financial situation.   This is another reason that it’s important to shop around. Each lender may have access to different types of loans. Discussing all of them will help you understand which one aligns best with your circumstances.   Mistake #4—Not Considering Future Financial Plans   When choosing a mortgage, consider your long-term financial plans. Are you planning to stay in the home for a long time, or might you move before 10 years is up? This can influence which type of mortgage loan (i.e., fixed vs. ARM) is a better option for you. Additionally, think about how your income might change over time and whether you might want to make extra payments to pay off the mortgage faster.   Aim to align your mortgage choice with your future financial goals to ensure you're making the most strategic decision.   Conclusion Securing a mortgage loan is a significant step in the home buying process, and avoiding these common mistakes can save you time, money, and stress. Remember—it all starts with shopping around! By doing so, you'll be well on your way to getting the best mortgage deal possible.   Do you need some recommendations on vetted mortgage lenders in the Black Hills? If no one has ever taken the time to sit down with you and go over what it takes to buy a home in today's market, give us a call, 605-340-0768.    

Now, more than ever, having the right home insurance is essential.  But with rates on the rise, how do you ensure you're getting the best coverage without breaking the bank? Let's explore the ins and outs of home insurance and uncover some strategies to secure the best deal for your home in the Black Hills. Understanding the Rising Costs of Home Insurance Since 2019, home insurance rates have surged by 37.8% across the United States. Several factors contribute to this rise: Inflation and Home Prices: As home prices increase, so does the cost to insure them. Inflation has also driven up the cost of building materials, making repairs more expensive. Natural Disasters: Climate change has led to more frequent and severe natural disasters, resulting in higher claims and, consequently, higher premiums. Insurance Company Costs: Insurance companies are facing higher costs to repair homes and are passing these costs on to consumers. In South Dakota home insurance rates are up more than the national average. SD has had a 49.7% increase in rates since 2019. Note: look up how much rates have increased in different states here.  While this is news no one wants to hear, there are things you can do to secure a lower rate. Let’s take a look.  How to Find the Best Home Insurance Rates 1. Shop Around and Compare Quotes Just like you wouldn't buy a house without looking at a few options, don't settle for the first home insurance quote you get. Compare quotes from multiple providers to see who offers the best rates for the coverage you need. I can help connect you with vetted home insurance representatives in South Dakota. 2. Bundle Your Policies Many insurance companies offer discounts if you bundle your home insurance with other policies, such as auto insurance. This can lead to significant savings and simplify your insurance management. 3. Improve Your Home's Security Insurance companies often provide discounts for homes with enhanced security features. Installing alarm systems, smoke detectors, and deadbolt locks can reduce your premium. Some insurers even offer discounts for eco-friendly home upgrades. 4. Increase Your Deductible Opting for a higher deductible can lower your monthly premium. However, ensure you choose a deductible that you can afford in case you need to make a claim. 5. Make Strategic Home Improvements Insurance companies look at the age and condition of your property—and pay close attention to exterior features like the roof, windows and doors. These renovations can help you lower your home insurance rates. Adding features like storm shutters or upgrading electrical systems can also make a difference.  6. Maintain a Good Credit Score In many states, insurance companies use your credit score to determine your premium. A higher credit score can result in lower rates. Make sure to pay bills on time, reduce debt, and monitor your credit report for any errors. 7. Review Your Coverage Annually Your insurance needs may change over time, so it's essential to review your coverage annually. Ensure that your policy still meets your needs and that you're not paying for unnecessary coverage. Conclusion Securing the best home insurance at the best price requires a bit of research and strategic planning. By understanding the factors driving up insurance costs and taking proactive steps to reduce your premium, you can protect your home without overspending. Remember to review your policy regularly and stay informed about changes in the insurance landscape. Your home is one of your most valuable assets—make sure it's adequately protected.