If there’s one thing you definitely want to get right when you market your home for sale, it’s the listing price. In fact, your price is a big determinant of how fast your home can sell and how much you can sell it for. 

Home prices continue to rise across California, which is exactly what home sellers want to hear. Unfortunately, this continued trend in price increases might make homeowners believe that their properties are worth more than they really are. But sellers who list too high run the risk of scaring a lot of qualified buyers off and leaving money on the table.

Given the importance of the listing price, it’s important to understand what factors play a role in determining how much to list your house at. In fact, there are a lot of factors that can impact the listing price of a home, including the following.

Location

Number one on this list is the location of a home. You can make any number of changes to a house, but you can’t change its location. Your home’s proximity to major transportation routes, good schools, everyday amenities, parks and greenspace, and other desirable features can make it more appealing to buyers and can, therefore, increase its perceived value.

On the other hand, close proximity to train tracks, power lines, and industrial activity can have a negative impact on property values. Crime rates and the local economy also play key roles in the overall location of a home, as well as its value.

Even the exact location in a neighborhood or a street plays an important role in the value of a home and how much it should be listed at. For instance, a home at the end of a quiet cul-de-sac will be worth more than a home on the other end of the block that abuts a busy street.

Certain Upgrades and Features

There are certainly a number of features and amenities in a home that can add to its value. But not all upgrades will necessarily add to the overall value of the home dollar for dollar. Just because you spend $30,000 on a specific improvement doesn’t translate into an added $30,000 in value to your home.

There are specific upgrades and features that buyers look for in a property they intend to purchase. In addition, the quality of the upgrades and features also affect the listing price of a home.

A home with higher-end upgrades compared to a home without any upgrades can usually sell at a higher sale price because of its desirability from the point of view of buyers. For instance, a home that has hardwood floors and granite countertops will typically be able to sell for more money than a home that is similar in size and layout without such features.

But it’s important to understand that certain home improvement projects don’t necessarily bring in a high ROI or have a positive effect on the listing and inevitable sale price of your home. It’s important to learn about the particular upgrades that buyers in your area are looking for in a home they buy versus those that they don’t perceive as valuable before you tackle any home improvement projects.

Condition

Two homes that are identical in size, layout, and features won’t sell for the same price if one is in considerably better shape than the other. The condition of your home plays an important role in what you can list your home at. Obviously, the better condition your home is in, the higher you will be able to list for. On the other hand, a home that is in need of a number of improvements and repairs will likely have to be listed at a lower price.

That’s why it’s generally advised that sellers make specific repairs and improvements in order to bring their home up to par. This, in turn, will allow sellers to list a little higher and command a higher sale price when all is said and done.

Comparables

Often referred to as “comps,” comparables are similar homes in the neighborhood that have recently sold. These listings paint a much clearer and more accurate picture of how much you can realistically expect to sell for. Ideally, the homes on this list will be located no farther away than one to three miles from your property, and should be similar in style, size, layout, number of bedrooms and bathrooms, and features.

In addition, the homes should not have sold any further back than three to six months ago. Any more than this will not accurately reflect the current market. While you can always look at what currently listings are priced at, you’ll get a much better idea of how much you should list at by looking at homes that have already sold.

Sellers can ask for whatever they want, but that doesn’t mean they will end up selling at the price they’ve listed at, which is why it’s always best to look at sold comps when determining your listing price.

Competition

The more homes that are for sale in your area, the heavier the competition will be. This can have an impact on what you might be able to list your home at. It’s important for sellers to know what’s going on in the area. In this case, you’ll need to look to your real estate agent to help you understand what the exact competition level is like in your area and what the trends are in terms of the number of listings on the market over the recent past.

Your Motivation

How motivated are you to sell your home and get it off your hands? This can be a big factor at play in your listing price. The more desperate you are to sell quickly, the more likely you may be to list a bit lower to make a quick sale happen. On the other hand, if you’re just testing out the market or aren’t in much of a rush to sell, you won’t be in a position to list lower just to bring in buyers quickly.

But not only does your motivation level matter when pricing your home, so does that of buyers in the area. How can you tell what buyers’ motivation is? From things such as the list versus sale price and average number of days on the market, among others. Insights like these can give you some idea of how quickly buyers are likely to pounce on a home in your specific market.

The Bottom Line

There are definitely plenty of factors that come into play that should be carefully assessed when listing your home for sale. It’s important that you scope them all out and work alongside your real estate agent to establish a listing price that will maximize your chances of selling in a reasonable amount of time and for as much money as your current market dictates.

There’s something about plants that brings a sense of vibrancy, life, and coziness to a home. Bringing a little of the outdoors back inside can keep you connected with nature while giving your home an added element of decor. At the same time, having an indoor garden can also provide you with easy access to some of your favorite herbs that you might like to use when preparing your favorite dishes.

To help ensure a flourishing indoor garden, consider the following tips.

1. Find the Best Spot in the House

Every type of plant may have its own specific requirements to ensure healthy growth. While some plants may thrive in direct sunlight all throughout the day, others might appreciate much lower levels of natural light.

For instance, plants that love lots of sunshine may do well on a windowsill that is facing north or north-east. Or, if the soil seems to dry up very quickly or there are signs of withering, move the plant away from the windowsill and more towards the middle of the room. Position your plants accordingly, and keep trying different spots until you find the best one for your plants.

2. Keep the Plants Far From Drafts

Whether it’s from an open window, an air conditioner unit, or a vent, plants should never be positioned in such a way that they will be in the line of fire of drafts. Even the slightest draft can kill a plant or severely compromise its health.

3. Water Appropriately

Many newbie gardeners tend to over water their plants thinking that they’re always thirsty. While watering is certainly essential, too much can actually kill a plant. Generally speaking, plants should only be watered when the soil mix feels dry.

You can check the moisture level of the potting mix by simply sticking your finger in it. If it’s dry, water it. If it’s still moist, it can go a little while longer without having to be watered.

4. Use Cool Water

Not only does the frequency of watering matter, but so does the actual temperature of the water itself. Plants typically like cool water as opposed to very warm water. More specifically, water that is around the 68°F mark seems to work best for plants, which appears to be the ideal temperature for plant roots to absorb water and nutrients.

5. Mist the Leaves

Indoor plants love having some water misted over their leaves, especially if the air indoors is quite dry. Just make sure not to mist too often and to only use water that is room temperature.

6. Fertilize the Soil

Outdoor gardens aren’t the only ones that could benefit from soil fertilization. Be sure to feed your indoor plants with a little bit of fertilizer. You can use liquid fertilizers that contain all the necessary nutrients that your plants need. Just be sure to follow the instructions about proper doses and frequency of fertilization.

Or else, you can always create your own natural fertilizer by composting with things such as vegetable and fruits peels, egg shells, and coffee grinds that can be added to the soil.

7. Trim Your Herbs

Your herb plants can grow much fuller if you trim them occasionally. Leafy herbs, like basil and cilantro, should be pinched or trimmed them back to the leaf nodule in order to stimulate the growth of lush leaves.

Woodier herbs, such as rosemary and thyme, get “woodier” as they grow older. These types of herbs should be pruned back to prevent them from becoming all stem and no leaf.

8. Wipe Off the Leaves

Just like all other surfaces in your home, the leaves of your plants can accumulate a layer of dust over time. As such, you’ll want to wipe them down in order to maximize the amount of sunlight that the plant receives and absorbs. If sunlight is blocked, the plant’s ability to photosynthesize will be reduced. Photosynthesis is how plant feeds themselves, so minimizing this process won’t do your plants any good.

The Bottom Line

Having a myriad of plants in your home can certainly breathe some life into your interior. But having plants is not a set-it-and-forget-it type of arrangement. Instead, your plants will need plenty of attention and a little know-how on your behalf to ensure they thrive. Keep these tips in mind when tending to your plants to create and maintain a thriving, healthy indoor garden.

If you own a property that is vacant for at least part of the year, you might be able to make some good money by renting it out as a vacation rental on sites like Airbnb. But while there is certainly some profit potential associated with using a service like Airbnb, there are a number of considerations that should be made first before you open your doors to the masses.

Here are some important things to consider before you list your property on Airbnb.

1. Safety Comes First

You obviously want to make some extra cash by opening up your home to guests through Airbnb, but it’s absolutely critical that you thoroughly screen guests before you hand them the keys. Safety should always come first, especially when you allow complete strangers to take up residence in your home for a brief period of time.

You might be excited to get an interested party, but don’t be afraid to turn them down if anything seems a little unsettling about them. Be sure to put potential guests through a screening process. You might insist on having guests provide a copy of government-issued ID or only agree to take guests who have a certain number of positive reviews from other hosts. Whatever your particular process may be, make sure it’s thorough enough to prevent any sketchy individuals from occupying your home.

2. It Takes Time

You will need to dedicate a certain amount of time to your Airbnb listing, so make sure you’ve got a few hours to spare each week for this purpose. You’ll need to take calls, respond to emails, screen potential guests, prepare contracts, deal with emergencies, and clean the property between each guest. Make sure that you have the time to commit to hosting an Airbnb before you decide to put your property up for rent.

Of course, you can always hire a property management company to handle all of these time-consuming tasks for you, but that will eat into your profits, which can be a problem if you’re just barely making any money from this endeavor.

3. Insurance Will be Required

Letting strangers occupy your property is a risk, not just safety wise but also in terms of theft and liability. You could unknowingly allow a guest in who ends up stealing from you or damaging the property. You could also be faced with a situation whereby a guest hurts themselves on your property.

There are so many different situations that can arise that can put you at legal and financial risk, and the best way to protect yourself is by having the appropriate insurance policy in place. You might have homeowner’s insurance already, but it will likely be limited. Look into Airbnb liability insurance coverage to minimize your risks.

4. You’ll Need to Revisit Your Listing Price Regularly

It’s a good idea to see what the comparable properties in your area are being listed at on Airbnb so you can establish a competitive price. The price is one of the most important factors involved in being successful on Airbnb, so it’s essential to get the price right.

But once you establish an appropriate price, that doesn’t mean you can just set it and forget it. The price will need to be revisited every so often, especially as the market changes.

5. Your Neighbors Might Have a Problem With it

As you can imagine, some homeowners might have a problem with having a slew of different people set up shop in the neighborhood every few days. As such, many communities across the country have petitioned local city councils to restrict or even ban Airbnbs in the area. Make sure to find out whether your particular area has any current petitions against Airbnb listings. If so, you may want to tread lightly and decide if all the trouble is worth it.

6. You Might Not Be Allowed to List Your Place

Not only can neighbors give you a hard time about renting out your home on Airbnb, but you might not even be legally permitted to do so, especially if you currently rent. Many leases clearly stipulate that sub-leasing is strictly forbidden, and collecting rent from guests through Airbnb certainly falls under this category.

If you rent your unit, it is critical that you discuss your intentions to list on Airbnb with your landlord beforehand. If your rental unit is in a condominium, you will also need to get approval from the HOA before listing.

7. Extra Expenses Should Be Budgeted For

You may be collecting a rental fee from each guest that you host, but there are expenses that will deduct from your profits. Being a host on Airbnb will come with several costs, such as cleaning fees, repairs, and even Airbnb’s service fee.

8. There Are Laws You’ll Need to Understand

You’re responsible for finding out what the regulations are in your city and act accordingly. Some Airbnb hosts have faced hefty fines for renting their units that are not according to local law. For instance, there may be certain zoning laws that need to be followed that could deem your property a rooming house or even a bed and breakfast. If your zoning laws do not allow for such properties in your neighborhood, you could be slapped with a fine.

9. Uncle Sam Will Want a Cut of Your Earnings

Any profits that you make from renting your property will have to be reported to the IRS come tax time. That said, you should be able to claim any expenses against it in order to minimize the amount of taxes you will responsible for paying.

The Bottom Line

You definitely stand to make some extra money by renting out your property on Airbnb and other vacation rental sites like it. But it’s not as simple as listing your property and collecting rent checks. There are some important considerations that should be made before you embark on this journey in order to ensure you’re making an informed decision.

If you’re taking out a mortgage on a home, you’ll be stuck paying interest on top of the initial loan that you take out. The lower the interest rate, the less you’ll be paying towards interest overall, which is why it’s always best to try to get the lowest rate possible on a home loan.

The promise of a lower interest rate will certainly capture the attention of borrowers, and adjustable-rate mortgages typically offer lower rates compared to fixed-rate mortgages, at least for the first little while. But adjustable-rate mortgages are also known to fluctuate throughout the life of a home loan. While you might be promised a lower rate during an initial time period, that rate can easily go up at some point.

Given this fact, is an adjustable-rate mortgage too much of a risk to consider?

What is an Adjustable-Rate Mortgage?

Adjustable-rate mortgages involve monthly mortgage payments that can move up and down as the interest rate fluctuates. The majority of adjustable-rate mortgages offer an initial time period whereby the rate is fixed, which means the rate doesn’t change during this time.

Once this initial period ends, it will be followed by a longer time frame where the interest rate will change at specific intervals. During this time, the rate will fluctuate along with the index (of which there are many), which is a rate determined by market forces.

The rate associated with an adjustable-rate mortgage is calculated by adding the index rate with the “margin,” which is a percentage rate that can be negotiated with the lender. The margin never changes once it’s been agreed upon, but the index does, which is why the rate will typically be higher or lower at preset intervals.

How High Can Interest Rates Go?

Some buyers may be concerned about the fluctuation of interest rates with adjustable-rate mortgages, which is a valid concern. Rates certainly do go up and down, as is the nature of this type of loan product. But that doesn’t mean the rate can go sky-high with no rhyme or reason to its soaring increase.

In order to prevent interest rates from getting out of control, a “rate cap” is put in place. The purpose of a rate cap with adjustable-rate mortgages is to reduce overall interest costs and limit the amount that the interest rate can increase.

Three different types of rate caps exist to help control interest rates and protect borrowers. The initial adjustment cap determines how much the interest rate can rise after the first adjustment when the fixed-rate period ends. The subsequent adjustment cap determines how much the interest rate can rise in the adjustment time periods following the initial rate adjustment, while the lifetime adjustment cap determines how much the interest rate can rise over the life of the mortgage.

These rate caps help keep rates somewhat under control so they can’t arbitrarily skyrocket for no reason.

Some Adjustable-Rate Mortgages Are Riskier Than Others

The thought of interest rates increasing after the initial fixed-rate period can sound a little unsettling, but there are certain types of adjustable-rate mortgages that can be riskier than others.

Mortgages that incorporate negative amortization – also referred to as “payment option” adjustable-rate mortgages – can be tricky if you’re not careful with them. These types of loan arrangements involve minimum monthly mortgage payments that might not include the entire interest amount. As such, they’re typically more affordable because you’re not obligated to pay the full interest portion.

The part where things get tricky is when you eventually have to repay that interest amount. Any unpaid interest will be added to your principal balance, which means you will have to pay more on your overall mortgage, regardless of whether or not you’ve been making your monthly payments on time.

Adjustable-Rate Mortgages Best Suited For Specific Borrowers and Markets

The idea of paying less in interest – albeit for a temporary amount of time – sounds attractive. In fact, adjustable-rate mortgages can help borrowers keep more money in their pockets thanks to lower rates. But these types of home loans aren’t for everyone, nor would they be ideal for certain markets.

Adjustable-rate mortgages are better suited for those who only plan to stay in their home for a short while. If you are planning to live in your home for less than five years, this type of mortgage arrangement might be less risky for you. That’s because you’ll be refinancing or getting rid of your mortgage before the fixed-rate period ends (or soon after), which means you won’t be vulnerable to any sudden increases in mortgage payments when it’s time for the rate to be adjusted.

In fact, these types of home loans are ideal for those who plan to sell in the near future because it allows them to take advantage of lower rates and save a great deal of money on interest before they sell.

On the other hand, those who plan to stay put in their homes for the long haul will be more vulnerable to rate fluctuations. If the market is predicted to favor a sharp increase in interest rates in the near future, you could be vulnerable to rate increases after the initial fixed-rate period ends. If you don’t have the budget to accommodate for such an increase, you could find yourself having trouble managing your mortgage payments.

However, if rates are expected to decrease at some point in the near future, an adjustable-rate mortgage can help you take advantage of a lower rate rather than being locked into a higher rate with a fixed-rate mortgage.

The Bottom Line

At the end of the day, adjustable-rate mortgages are only risky if the markets dictate a rate hike in the near future and you don’t have the financial cushion to accommodate higher mortgage payments. Before you decide to take out an adjustable-rate mortgage, you’d be well advised to speak with a seasoned mortgage broker in great detail. Based on your future plans, your financial situation, and the current and future market, you’ll be better able to decide if an adjustable-rate mortgage is risky or not for you.

California homeowners are heavily dependent on the air conditioners, especially as the summer sun starts to really sizzle. There’s no denying the importance of your air conditioner, which is why it’s so important that it remains in good working order all throughout the year, even during times when you’re not using it.

But like almost everything else in the home, air conditioners don’t last forever. They’ll even break down from time to time before they take their final bow. The key is to recognize any signs of trouble so you can deal with them right away and ensure your air conditioner is working well when you need it most.

Here are some tell-tale signs that it might be time for repairs or even a total replacement.

1. It’s Blowing Out Warm Air

The whole point of having an air conditioner is to cool the air inside your home. As such, it makes sense that the air coming out of your A/C is cold. But if you notice that your unit is blowing out warm air, there’s definitely a problem.

There could be any number of reasons for the lack of cool air being blown. Maybe the system’s compressor has broken down, or perhaps the Freon levels are too low. If that’s the case, the unit might be beyond repair and will likely need to be replaced altogether.

2. Air Flow is Weak

Even if there is cool air being blown out, there could be an issue of weak air flow. Even if your air conditioner is on full blast, you might only feel a tiny amount of cool air coming out of your vents, which isn’t enough to adequately cool the air in the home.

In this case, the compressor could be faltering, or there could be a major issue with the ductwork. Either way, the professionals will need to be called in to assess why you’re noticing very weak flow of cool air in your home.

3. Water is Pooling at the Bottom of the Unit

If you notice any moisture at the bottom of the unit, that’s a problem. It could be that the drain tube that’s responsible for eliminating condensation is either blocked or broken. In this case, a simple repair can fix the problem and get your A/C unit back up and running.

However, the issue could be more serious. It’s possible that the refrigerant is leaking, in which case the air conditioner will have to be fixed or replaced right away because this can pose a health hazard. At the very least, such leakage can start to cause issues with mold growth, which is another problem itself.

4. The Unit is Making Weird Noises

It’s quite normal for air conditioners to make a certain amount of noise. However, if you hear any strange noises coming from your unit, there might be an issue that should be addressed. Any grinding or squealing noises aren’t normal and are likely caused by a problem inside the unit.

It could be caused by the belt slipping out, a metal piece that needs some lubrication, or broken-down bearings. Regardless, these noises warrant a call to the HVAC experts.

5. Strange Odors Are Being Emitted

Not only can faulty air conditioners make strange noises, they can also let out odd smells. There’s no reason for your A/C to smell bad unless there’s something wrong. Many times, these foul odors are the result of wire insulation burning out or mold developing inside the unit or ducts. Either problem is a big one and requires the attention of a professional immediately.

6. The Unit is Old

Good-quality air conditioners should last at least 10 years, but they’re not meant to last forever. If your air conditioner has been around for at least a decade, it might be time to replace it if it’s starting to show signs of wear and tear and is causing problems. If you’re finding yourself calling the HVAC professionals frequently, you should seriously consider replacing your unit.

7. Your Utility Bill is Through the Roof

Whether your air conditioner is old or just faulty, it could be working inefficiently and using far more energy than it should have to in order to keep the air in your home cool. As a result, you could see utility bills that are much higher than the average. In this case, you should think about replacing your unit with a newer, more energy-efficient model.

The Bottom Line

Your air conditioner is obviously a crucial component to the overall comfort level of your home. As such, it’s in your best interests to make sure that it’s always in proper working condition by keeping an eye on it and performing regular maintenance checks. Doing so will help you identify any issues that need to be dealt with right away before they become major problems.