Why Are You Buying A Home?

There are two main reasons a person may buy a home, as an investment and as a shelter.  Having the right mindset of whether the home is an investment decision, or a housing decision can be a HUGE help when submitting your offer in a competitive bid situation as could be the case throughout 2022.

The red-hot real estate market of 2021 is cooling down a bit but is still simmering with most homes entering a multiple offer situation with some still seeing double-digit offers.  With many factors of 2021 still in play in 2022, a home buyer cannot expect a dip in prices where you can jump in a score a “deal”.  The facts are clear:

  • Baby boomers are staying in their houses longer
  • Millennials who are entering the housing market are a relatively large population
  • Although interest rates are higher than a year ago, they are still at historic lows
  • Home construction is still slowed as the shortage of some building materials continues

If it is an investment decision, over-bidding for a property may not be the right move.  If it is a quick flip situation, even over-bidding by a slight amount could tank your ROI after your improvements are made and the home is sold again.

For example, 123 Main Street is on the market for $400,000.  An investor sees the property and thinks if he could buy it for $400,000, put $100,000 of upgrades into it in the next 3 months, he could put it back on the market for $575,000.  The investor would make a profit of $75,000 or 15%.

The investor submits his offer of $400,000 and the home enters a competitive bid situation due to the nice neighborhood it is in.  The investor increases his offer to $450,000 to secure the property.  He upgrades the home the following three months at the projected cost of $100,000 and is able to sell the house for $575,000.  The investor’s profit is now $25,000 or 4%.  Not a very good investment decision.

Let’s change the scenario to a newly married family with a couple of small kids.  They look at this $400,000 house as a great place to raise their family.  It is towards the high price of their budget, but they feel they can put some sweat equity into the property as they plan on staying there for 5+ years.

During the competitive bid situation, this couple stretches their budget and increases their offer to $450,000 so they can secure the home.  Their plan was a good one.  They viewed this as a housing decision.  They loved the home and were in a position to be able to over-bid for it and still feel comfortable with the monthly mortgage payment.

The future is unpredictable, but home prices increase about 4% on average per year.  If this couple stays in this home for 5+ years and puts in the sweat equity like they planned, when the time comes to sell, they will see a very healthy return on their original $450,000 purchase.  Check out this site that tracks medium home sale prices from 1953 to the present. Historical Median Home Prices

If a buyer can change their mindset on purchasing a new home to a housing decision and not an investment decision, they will have a much easier time getting their offer accepted because they know that even if they have to increase their offer on any given home, in the long run, the asset will appreciate, and that good housing decision will eventually turn into a great investment decision.

Buying & Selling Your Home During the Holidays | Buyer-Seller Tips

Image from Google

You might soon notice your neighbors removing “For Sale” signs and replacing them with Christmas lights. Buyers and sellers often take a break over the holidays to recuperate for the new year. However, there are a number of reasons why being active during a winter slowdown can be beneficial.

As more properties become available in the spring, most buyers come out of hiding and begin their house quest. However, starting your property hunt during the holidays can provide you with more freedom – and possibilities.

Here are some reasons why buying now might be a good idea.

1. There is less competition.
If you’ve been discouraged by this summer’s bidding battles, the holidays might be the time for you. While buyer activity has been high for the majority of the year, thanks to historically low mortgage rates that make homebuying more accessible, traffic is expected to drop in the coming months. You’ll have more options because there will be fewer purchasers pounding on the doors of potential listings.

2. More time to look for a home.
Buyers have been obliged to act quickly because the market has been so on fire. Now you may relax and devote a bit more time to finding the ideal home with all of your desired features. Finish your Christmas shopping online and use your fall and winter vacation time to visit and narrow down a shortlist of your favorite homes.

3. Interest rates that are lower.
While many homebuyers anticipate to take a break over the holidays and resume their search in the spring, savvy purchasers, such as yourself, know that now is the best time to take advantage of historically low rates before they rise. Purchasing now rather than later might save you roughly $1,500 each year. It’s worth noting that December is widely regarded as the best month for finding a decent deal on a home.

4. Negotiation potential.
Negotiations have fallen by the wayside in this seller’s market. When you combine that with low inventory, it’s no surprise that sellers have got the upper hand. This disparity is expected to even out over the holidays. Because there are fewer active bidders, there are less feeding frenzys on available properties, and sellers may be more likely to bargain on price, contract terms, and closing date.

5. Tax breaks at the end of the year.
Another benefit for purchasers: end-of-year house purchases allow buyers to take advantage of a significant tax deduction. On principal properties, homeowners can deduct up to $750,000 in mortgage interest, as well as up to $10,000 in combined local, state, and property tax deductions. In some areas, other homeowner-friendly deductions, such as moving fees, may also apply.

Image from Google

Spring is the season when most homes go on the market, prepping for the hustle and bustle of summer. Home sellers who stay on the market in the fall and winter — or newly list their properties — can often become a hot commodity.

Here are some major advantages you can expect when selling your home during the holidays.

1. There is significantly less competition.
Housing supply has been famously scarce. Despite this, buyer activity has remained robust since rates have remained so low, fostering unparalleled affordability. So, as a seller, what does this mean for you? Selling your house around the holidays, when inventory is even lower, thins out your competition tremendously. You’ll be the large fish in a small pond, with (many) more nibbles on your tail.

2. Buyers who are highly driven.
Due to low inventory, many homebuyers may act swiftly – and close quickly, which is to your benefit. Because the housing market is generally slower over the holidays, loan officers are more likely to approve and close qualified purchasers sooner. It’s much better if you reside somewhere with a warmer temperature. In the fall and winter, warm-weather markets like Phoenix and Miami are still hot sellers.

3. Realtors that are extremely motivated.
Your realtor may have the time — and the ingenuity — to make your listing stand out even more during the seasonal slowdown. When selling your property during the holidays, an agent who is working extra time may put more care into photography and staging, or they may give out freebies at a winter open house. If you haven’t found a realtor you like, ask your loan officer for a recommendation.

4. Interest rates that are lower.
Mortgage rates are still historically low, but they’re predicted to gradually rise by the end of the year. This presents a once-in-a-lifetime opportunity for homebuyers to save money by acting now rather than waiting until next year. Cheaper interest rates translate to lower monthly mortgage payments, which can tempt more buyers to buy, as well as benefit you when you sell and buy your next home.

5. More time to look for a home.
With time off from school and work, enthusiastic customers have more time on their hands. They’ll be pulled to your property not just by its winter wonderland-like curb appeal, complete with dazzling Christmas lights, but also by the time they’ll have to look at listings and attend holiday-themed open houses. Additionally, non-U.S. purchasers who do not adhere to the same calendar may be interested in purchasing.

Prepare your home for the FALL market!


With the weather getting cooler and the leaves beginning to change, read below to learn how to prepare your home to sell in the fall! 


Analyze the Market and Price Your Home Right 


Decide if this is the right time to sell your home! Check with your local real estate experts for advice and help! 


Perform Inspections and Cleanings 


Check to make sure that applications like your HVAC system and furnace are properly working and ready for a potential buyer to move in!


Decorate For The Fall Season 


Interior/exterior decorating for fall, can go a long way in helping the potential buyer envision themselves living in your home. Buy some pumpkins or even a cute door decoration for your home, while avoiding things like blood and gore! 


Clean Up The Exterior


This can be as simple as raking leaves, weeding flower beds or cutting the lawn. Enhancing curb appeal, can show potential buyers that you care about the small details of your home! 


Prepare Your Home For Showings 


Embrace the fall season by burning a fall scented candle or even having pumpkin coffee brewing in your home. Make your home smell good with these fall scents!

Curb Appeal Tips!


We often don’t pay attention to the small details that make up our home. In order to attract the attention of potential homebuyers, use these easy and affordable curb appeal tips to upgrade your home! 


Walk Around The Outside of Your Home 


More often than not the small details of our home sometimes slip our mind. In order to see through the eyes of a prospective homebuyer, stand across the street or even take a drive-by of your home, to inspect details that may need to be upgraded!




Painting the outside of your house can be a great way to give it an updated look!


Plant a Tree


This can add life, style and longevity to one’s home and add to the curb appeal for a potential buyer. 


Add Flower Boxes 


This can bring a pop of color to one’s home and is relatively affordable!


Clean Walkways, Sidewalks, and Hardscape Areas 


Using a pressure washer to make sure that walkways and driveways are clean, can go a long way in the potential sale of a home!


Hire a Landscaper or Visit A Home Improvement Store 


If you aren’t an expert as to what would look good around your home, asking a professional for advice 0r help, is never a bad idea!


Light Up Your Exterior 


New light fixtures can increase function and style! 


Buy A New Mailbox 


While getting a new mailbox might seem small, it shows potential buyers that you care about the details and is a simple way to increase the curb appeal of your home!


Creating A Welcoming Entryway


Painting or replacing things like railings, doors, or stairs can increase curb appeal and draw attention to a beautiful entryway. 


Buy New House Numbers 


Nothing is worse than a potential homebuyer not being able to find your home because the house numbers are faded. This simple curb appeal tip, is a great way to ensure that homebuyers can find your house! 


Check Out More Curb Appeal Tips Here: https://www.lifestorage.com/blog/moving/diy-curb-appeal-tips-increase-buyer-appeal/ 



Behind The Transformation | 24 Grand View Ave


Come discover how Covelle & Company can help you sell your property.  As a seasoned realtor and interior designer,  Erica Covelle can take a property from distressed to daring. Designing, styling, and staging spaces is an art that takes a listing to the next level. Above you will see the inspiration for our latest project and listing, 24 Grand View. Erica produces her own designs, creating a cost-efficient renovation for the client to catapult and cash in on their well-deserved equity.


Luckily, Erica Covelle was born with the gift of making interior settings look fantastic. It’s what she loves most about her job selling real estate.  This talent (along with her experience as a professional interior designer and realtor) sets her apart from all other agents. She transforms “what it is” to “what it can be” while building equity and setting the scene to achieve top dollar numbers! Intrigued? Buckle up — we’re taking you through the design process of some of our most revealing transformations!  


Here are some pictures before the home has been designed:

Here’s just a snippet of how we transformed this home:



New vanity and some matte black hardware make this bathroom shine! 

Living Room


Hello chic modern decor.



From drab to fab — with new hardware and designer light fixtures! 

Master Bedroom


With brighter walls, less clutter, and a modern feel, this space really opened up.

Contact us today to hear more about our top agents offering an exclusive white-glove service. 

Thank you for looking at Designs By Erica.  Check out our Pinterest to get some awesome inspiration!