The start of the new year is the time when many people make resolutions to themselves to improve their lives in some form or fashion. Losing weight, finding a better job, or traveling tend to be among the more popular New Year resolutions, but if buying or selling your home is on the agenda for 2023, there are other specific resolutions that should be on your list, and that you should stick to.

Here are some new year resolutions that you should be making to help you achieve your home buying or selling goals this year.

BUYERS

Start Saving

It sounds like a no-brainer, but it’s worth mentioning nonetheless. There’s no time like the present to start saving for a new home, and the more money you can muster up, the smaller the loan you’ll need to take out. If you can gather at least a 20% down payment, you won’t have to worry about paying Private Mortgage Insurance (PMI) that lenders charge to protect themselves in case you ever default on your mortgage.

If you can’t gather up that much money towards a down payment, don’t fret. You can still put down as little as 5% for a conventional mortgage, and even as little as 3.5% for an FHA-backed home loan.

Either way, you still need to save. If you have difficulty being self-disciplined with your spending and saving habits, consider automating your bank accounts so that you put aside a certain amount of your income into a separate savings account every month. If you don’t see the money while it’s being automatically deposited, you won’t be as tempted to spend it.

Budget

You should have an idea of how much house you can afford to buy, as well as all the extra expenses that come along with purchasing a home. Set up a budget that outlines in detail what your income is, and compare that amount with your current debts.

Make an effort to shrink your budget a little bit to help you make more room for saving up for your future home and reduce your debt amounts. Try to come up with a budget that takes into account the fact that your mortgage will take up a larger amount of your paycheck in order for you to start getting accustomed to spending less money on unnecessary things.

Improve Your Credit

A key factor that your lender will consider before approving you for a mortgage is the state of your credit. If your credit score is low, you stand a good chance of getting denied. Even if you are approved, you will likely be faced with a higher interest rate on your mortgage, which will cause your home loan to be more expensive over the long run.

Get a copy of your credit report to make sure there aren’t any errors on it that could be bringing your score down. If you find any, report them to the credit bureau so that the issue can be investigated.

If your credit score is very good (at least 700 or above), you’re in a good position. If it’s lower than that, you need to take steps to improve it. Start paying your bills on time and in full each month, and keep up on your credit card, student, and auto loans. Don’t use any more than 30% of your available credit, and make sure not to make any large purchases on credit, which can have a negative impact on your credit score.

All your lender wants to see is that you are responsible with your credit.

Get PreApproved For a Mortgage

Having a mortgage pre-approval will not only allow you to identify how much you can realistically afford before you start house hunting, it will also tell sellers that you are less of a risk compared to another buyer without a pre-approval.

Having said that, make sure you start gathering up all of your financial documents to provide to your lender so that the pre-approval process can get underway. This includes your tax returns, bank statements, and letter of employment, among others. You will also need to fill out and submit a mortgage application. It should be noted that a pre-approval is not necessarily a guarantee that you will be approved for an eventual mortgage, but it certainly gets you one step closer.

SELLERS

Get Your Home Ready For the Market

Have a good look around your home. Does it look cluttered? Could your walls use a paint job? Are your shelves covered in family photos? Now is the time to clean up, make any repairs, or even redecorate to properly stage your home for the market.

Generally speaking, your real estate agent and professional home stager will likely recommend decluttering, depersonalizing, and neutralizing the decor of your home in order for it to be more appealing to a larger pool of buyers. The earlier you start this potentially big project, the more time you’ll have to make sure your home is ready to be viewed by prospective buyers.

Work Out the Time Between Selling Your Home and Buying a New One

This can be tricky, but it’s important to be able to calculate the rough timeline between selling your current home and buying your new one. You don’t want to be stuck with two mortgages because the closing dates between the two transactions overlap. Likewise, you don’t want to be rushed out of your home with no place to go because the closing dates are spread too far apart.

Determine whether or not you can afford to close on a new home before your current one sells. It can be somewhat stressful to sell your home and buy another one at the same time. Look at what your potential housing options are, and go over your finances in detail in order to plan out the most ideal timeline for both selling and buying.

Hire an Experienced Real Estate Professional

Having an experienced and knowledgeable real estate professional in your corner really should be top priority. These experts can help guide you in the right direction and assist you in making the right moves and decisions in proper succession in order to ensure the buying and selling process is a streamlined one. Choosing the right real estate agent can also help make sure that you stick to your real estate New Year’s resolutions!

It’s a small, unassuming space, but it’s a crucial one nonetheless. Bathrooms are one of the more important rooms that can add a great deal of value to a home if they’re modernized and up-to-date, not to mention bring years of comfort and pleasure to those who use it.

If your bathroom is currently in need of a little TLC, a remodeling job is probably on the agenda. But before you start the demolition process, make sure you’ve done your homework on what you should – and shouldn’t – do to bring this space up to par.

Here are some do’s and don’ts to bathroom remodeling to consider to make sure the final product is exactly what you want without breaking the bank.

DO

Choose Appropriate Finishes

A bathroom remodeling job can be pretty involved and expensive. The last thing you want to do is have to go through the process all over again in a few years because the materials and finishes you chose were too trendy and quickly became outdated. Try to stick with more classic, neutral finishes that are stylish yet will stand the test of time.

Similarly, you want to make sure the materials and finishes you choose are right for a bathroom. For instance, porcelain tile is an ideal material for any bathroom floor, as it’s a lot harder than ceramic tile and comes in a variety of sizes, colors, patterns, and shapes.

For the walls, you’ll have your pick of the litter when it comes to materials, including ceramic, natural stone, and glass. As far as the countertop goes, popular materials include granite, quartz, and marble, which can easily ward off the effects of water and moisture, and are extremely durable.

Maximize Storage

Storage is often elected in a bathroom remodel. While your home might have a linen closet nearby that’s big enough to house all of your towels and face cloths, you might want to have ample storage right in the bathroom itself for toiletries such as toilet paper, soap bars, tissue boxes, cleaning solutions, makeup, shampoo, and so forth. Consider adding a full vanity or built-in shelving.

Update the Ventilation System

Built-up moisture can wreak havoc in a small space like a bathroom. Having an adequate ventilation system can easily and quickly expel any steam and foul odors, and is a critical component of this space.

During the remodeling process, consider updating your ventilation system at the same time by installing a ceiling-mounted vent fan or a combination fan/light fixture that does double duty. Just make sure not to allow the fan to exhaust into the attic or crawl space, as this will allow moisture to cause mold and mildew build up in these enclosed spaces.

Install Water-Efficient Products

Any effort you can make to cut back on water usage can save you money and can help ease the water shortage crisis that the state of California continues to be plagued with. During a bathroom remodel, consider swapping your old fixtures with water-saving models that cut back on the amount of water used. From toilets, to shower heads, to faucets, you can ensure your water usage is a minimum of 20% more efficient.

DON’T

Take on a Job Out of Your Scope

You might be handy, but there are likely certain jobs that you aren’t skilled enough for. Taking on a job in an effort to save money that would otherwise be spent paying a professional can wind up in disaster if you don’t know what you’re doing.

The skill and expertise needed to design and remodel a bathroom is typically beyond the scope of the majority of DIYers and should be left to the experts, especially when dealing with the plumbing and ventilation. Stick to simpler jobs like ripping out tiles, painting, and decorating.

Forget About the Design Plan

The layout of your new bathroom should be designed with the people who will be using it most in mind. For instance, a master en suite might include more high-end finishes and components, such as the addition of a heated floor, glass-enclosed walk-in shower, and lots of fancy light fixtures.

On the other hand, a shared kids bathroom might include a double sink, no-slip tile, and a bathtub. A guest bathroom might include extra shelving and storage to provide enough space to store their things.

Forget to Budget For Unexpected Surprises

Just like any other type of remodeling job, it’s always important to budget accordingly and allocate enough money to cover unexpected problems and costs. You might discover major water damage after ripping out the drywall and flooring, which will cost money to rectify.

You may even come across a vent stack or plumbing lines inside a wall that you assumed could be ripped down. While an experienced contractor will be able to pinpoint most issues beforehand, you just never know what you’re going to find when the demolition starts, which is why it’s helpful to add another 10% to 15% on top of your budget to accommodate for these issues.

The Bottom Line

You can add tremendous value and enjoyment to your home by remodeling your bathroom if the job is done right. Be sure to heed the above tips so you don’t wind up disappointed with the end result or stuck making major alterations after the job is done.

Think about all those past purchases that you’ve later regretted. And while you may have wasted your money on these items that were seldom used, they pale in comparison to the amount of money you’d be spending on a home. That’s one major purchase you definitely don’t want to suffer ‘buyer’s remorse’ from.

Buying property is likely the biggest investment you’ll ever make in life. It’s is an exciting thing, but it can also send you up the creek if you’re not careful.

If you’re a home-buying newbie, steer clear of the following common mistakes that rookies tend to make throughout the buying process. Your wallet will thank you.

Not Finding Out What Your Credit Score is

Your credit score plays a key role in whether or not a lender will say “yes” to your mortgage application. And even if you do get a stamp of approval, your credit score could affect the interest rate you get stuck with. The higher your score, the better. Generally, if your score is 700 and up, you’re looking at getting the lowest interest rate that the lender can offer, which can shave off thousands of dollars from your mortgage.

You’ll want to find out what your credit score is before you even look into getting a mortgage pre-approval. And that means getting your hands on a copy of your credit report. Chew on this fact – over 40 million credit reports have mistakes in them! And these mistakes can have a grave effect on the credit scores that Americans are walking around with. Catching these errors and disputing them before you apply for a mortgage can ensure that the interest rate you’re given accurately reflects your actual score.

So if you find any errors that could affect your credit score, make sure they’re fixed right away. Check your credit report at least three months before house hunting, and if you spot an error, kindly ask the credit bureau to fix it.

Not Visiting With a Mortgage Specialist

How will you know what you’ll be able to afford if you don’t get your finances in order and get pre-approved for a loan? Even if you’ve got a decent handle on your money, that doesn’t necessarily mean the bank will say “yes” to financing a certain purchase. There are a lot of factors that affect your mortgage application aside from just the listing price of the home.

Before you start pounding the pavement in search of a new house, it’s wise to get pre-approved for a mortgage first. While this doesn’t exactly guarantee that final approval will be granted, it’ll at least give you a specific price range to look within, and it’ll show the seller that you’re serious about buying and that you’ve done your due diligence.

If you’ve been pre-approved for a mortgage that would cover no more than a $600,000 home, there’s no point in looking in neighborhoods where the average home goes for $900,000+.

Falling in Love With a Home That You Haven’t Bought Yet

This is a biggie. Newbie homebuyers have a tendency of falling head-over-heels in love with a home while on the market prowl, only to wind up losing the home for whatever reason. This ends up leaving homebuyers heartbroken and jaded about the market, which does nothing put put a wrench in the process.

You may come across a home that you absolutely adore, but getting emotionally attached before you’ve even signed on the dotted line is a bad idea. What if there’s a bidding war and you lose out? What if you can’t get financing for the place? There are several reasons that could prevent you from snagging that prized possession, so keeping your emotions in check can is important.

Remember – there’s always going to be another house out there. The more homes you visit, the better.

Waiving the Home Inspection Clause

Even the home you’re thinking of buying is new-ish, it still needs to be inspected by a professional after you’ve signed a purchase agreement. You just never know what might be lurking up in the attic or in the plumbing pipes that you might not have noticed during your own inspection of the home.

New homebuyers might skip this step because they get emotionally attached to the property (see #1) and want the place no matter what. Maybe they’re competing with another interested buyer and want a clean contract to get the deal done. Whatever the case may be, waiving the home inspection is a bad idea.

This clause will help protect you should the inspector find something that would otherwise be a deal-breaker. You’re then legally able to walk away from the deal if something is found that you just can’t live with, or you can even ask the seller to fix the issue or drop the price in compensation. Don’t be afraid to include this clause, and speak up to get things fixed before you seal the deal.

Not Using an Agent

Just about everyone who’s looking for a home will look to the internet to search listings and see what’s out there. That’s fine and all, but when your search starts to get serious, there’s no substitute for a real live agent.

A good real estate agent will find homes that you won’t necessarily see advertised on the net. They’ve got the inside scoop on properties that might not even have hit the market yet. And aside from what the home is priced at and what it looks like, you’ll be able to get a lot more nitty gritty details about properties that the average joe won’t be able to find, such as recently sold comps, neighborhood walk scores, and so on.

You’ll be better armed at the negotiating table if you’ve got a professional real estate agent in your corner.

This last one is probably the biggest mistake you’ll want to avoid, as an agent will help prevent you from making the other blunders in the first place.

Jumping into the real estate market for the first time is exhilarating, and so it should be. But taking precautions is totally necessary if you want to avoid getting stuck in a money pit.

Whether your family is growing, or your home simply isn’t meeting your needs in terms of space, you’ve got a couple of options: either move to a larger home with more square footage, or add it to your existing home in the form of an addition. Both are viable options, but the choice you make should only be done after careful consideration.

Many homeowners choose to stay put and go the home addition route. But while this option offers the obvious advantage of adding more space to your home, there may be some downsides to it as well.

Before you decide to add more space to your home through an additional room or even a completely new level, weigh the pros and cons of this option first.

The Pros

You don’t have to move.

If you love your current neighborhood and don’t want to have to go through the hassle of moving your family and all of your belongings, an addition could be a great solution. This is especially true if you’ve got kids and don’t want to uproot them from their current school, unless you’re able to find another home in the same school district.

Create just the right amount and type of space that your family needs.

Rather than depending on what’s available on the market, you can have the addition tailored specifically to your needs and tastes that will match your lifestyle perfectly. You have the freedom to build the right amount of additional living space that you require, and can customize the home addition design, as long as your lot size and city by-laws permit.

You can control the costs associated with the work.

Depending on the scope of the work, you can complete your addition in stages in order to ensure the project complies with your budget. For instance, you might choose to build the home addition and move your family into it while holding off on finishing up smaller yet expensive components of the project, such as crown molding or trim work. Once your budget is capable of supporting this additional work, you can then continue. You might even want to pitch in with your own elbow grease to cut down on the costs.

The Cons

It’s disruptive.

You and your family could be living through a ton of noise, dust, and disruptions for weeks or even months if you choose to remain in the home while the construction is going on. Depending on exactly what the project entails, you might be stuck having to do without certain important components of the home. For instance, if the addition involves extending the kitchen, you might have to go without that critical space for a while.

Your other option would be to temporarily relocate while the work is being done, but this also comes with its own set of consequences. If you stay in a hotel or other similar accommodations, this could end up costing you a pretty penny when it’s all said and done, not to mention the fact that living out of a hotel can get old after a while.

If you choose to stay with family or friends, you might be saving money but you’ll also have to put up with living in someone else’s house in the meantime, which can get pretty frustrating and burdensome as time goes by, both for you and the family who graciously put you up. 

It could be more expensive than just moving.

Moving comes with the costs of real estate brokerage commissions and fees, moving company costs, land transfer taxes, lawyer fees, and other closing costs, which can certainly add up. But these expenses could actually be cheaper compared to an addition. If you don’t plan properly, the addition could cost you more than you anticipated. The last thing you want is to have to make last-minute change orders to the design while it’s under construction, as contractors will charge you a great deal for these. In addition, not only will you have to cover the costs of material and labor, you will also be responsible for paying for permits and site inspection fees from the city, which can all add up.

You might be negatively affecting the value of your home.

An addition might suit your needs, but it might transform your home to the point that your neighborhood real estate market value won’t support it. For instance, if all the homes on your street are 3-bedroom bungalows and you add a second story addition that brings your bedroom count up to 4 or 5, you run the risk of “over-improving” and not recouping the money spent on the addition come sale time.

You’re compromising your yard space.

If you’re building out, you’re encroaching on your yard space. As a result, you’ll need to be ready to accept a smaller yard when the addition is done. Not only will this potentially compromise your own enjoyment of your yard, you could also be negatively affecting the value of your home if buyers in the area are looking for more yard space. In addition, you also have to confirm with the local building inspector is see if there are any setbacks and restrictions when it comes to building an addition on your property.

The Bottom Line

A home addition could very well be a fantastic solution for your family’s needs, but considering the cost and scope of such a large project, you need to cover all the bases to make sure that you’re making the right decision. Before you call your contractor, speak with your trusted real estate agent to help you explore all of your options and ensure that the decision you make doesn’t negatively impact your current home’s value or your budget.