Real Estate

My husband and I recently purchased our first rental property. Over the past few months, we’ve repaired and renovated the 1930s-era home, and are starting to look for tenants.

And it turns out, our timing couldn’t be better: The Tax Cuts and Jobs Act made several changes for rental property owners that portend a more profitable enterprise than it used to be.

“For rental property owners, [the act] will generally benefit you,” says Thomas Castelli, a New York City–based certified public accountant and tax strategist with the Real Estate CPA, a firm focusing on real estate tax.

How exactly the federal tax changes apply to individual property owners can vary, so Castelli recommends seeking out a tax professional well-versed in real estate to help sort things out. But here’s a general overview of some of the new tax rules that will most likely affect rental real estate owners—including me.

Landlords can deduct a big ‘bonus’ the first year

Blame it on wear and tear or just the passage of time, but in the eyes of the IRS, rental property depreciates over time. For landlords, that’s a tax break—typically one that’s spread out over several years.

The good news? During the first year of owning a rental property, landlords can take a “bonus” depreciation deduction. In the past, that deduction maxed out at 50% of the property’s value. But under the new tax act, that deduction doubled, to a max of 100%, which could amount to the entire sum you paid for the place. In other words, it’s a huge chunk of change!

This bonus deduction would be netted against revenue, which, in many cases, would make rental income show a loss, Castelli says.

“So you won’t be paying tax on your rental income,” he says. “I’d say that’s probably the biggest and most important change or most beneficial change to rental real estate investors.”

Keep in mind, though, that your property has to qualify. One, it must be placed in service (meaning available for rent) after Sep. 27, 2017, and before Jan. 1, 2023. Two, all or part of the property must have a “class life” of less than 20 years. Since most properties typically have a class life of 27.5 years, it would need to be reclassified as a five-, seven-, and 15-year property in order to take advantage of the bonus depreciation. (A CPA can help with this.)

“Let’s say you have a property worth $100,000, and you can get 20% of that reclassified as a five-, seven- and 15-year property,” Castelli says. “That’s a $20,000 deduction.”

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Watch: 5 Pet-Related Tax Deductions We Bet You Didn’t Know Of

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Up to 20% of rental revenue can be tax-free

While rental income is taxed, the tax act could offer landlords a nice tax shelter of sorts where up to 20% of that rental income is tax-free.

“What that means is for every $100 of taxable rental income, it’s possible that you only pay tax on $80 worth of it,” says Amanda Han, a certified public accountant and assistant managing director at Keystone CPA, in Fullerton, CA.

How it works: Section 199A of the IRS code provides some taxpayers with a deduction for qualified business income. In the past, there was much confusion about whether this applied to landlords, but the IRS issued a clarification, providing a safe harbor for a “rental real estate enterprise” to be treated as a business.

“That is helpful for a lot of landlords, and is available as long as it’s rental income,” Han says.

Landlords can deduct more home improvements immediately

In the past, landlords could deduct repairs to a rental property immediately, but home improvements were depreciated over time. This has often caused confusion for landlords.

“What is a repair versus what’s an improvement?” Han asks. “There were always questions about that, because repairs we deduct immediately; improvements we have to depreciate.”

Yet the tax act simplified those rules. Under section 179, the IRS increased the immediate deduction threshold for home improvements to $2,500 per item. In other words, money spent on improvements under $2,500 can be deducted immediately, rather than going through the complicated depreciation process.

One negative: Some landlord losses are now capped

One new aspect that could sting rental owners relates to losses on the property. A loss occurs when a property’s expenses total more than rental income. Previously, owners of rental real estate could take unlimited losses from their rental real estate. The tax act now limits those losses to $250,000 for a single person and $500,000 for married couples, Castelli says.

The upside: Since these limits are quite high, Castelli says this change will not affect most individual rental-property owners.

How to make the tax act work for you

The tax act has been better than expected for rental property owners, Han says. “It’s a great opportunity for real estate investors.”

Good record-keeping is essential for rental owners, and Han recommends property owners keep sales closing disclosures, purchase closing disclosures, refinancing documents, and receipts for anything to do with the home for at least three years.

The post Own a Rental Property? Why Filing Your Taxes This Year Rules appeared first on Real Estate News & Insights | realtor.com®.

If vodka is your spirit of choice, you may prefer it on the rocks, in a bloody mary, or even in a Moscow Mule. This clear, mostly odorless, infinitely mixable liquor is a staple in any cocktail connoisseur’s at-home bar cart.

But it turns out, vodka can be used for more than just happy hour. It can also be used to degrease, deodorize, and disinfect your home!

“Liquor—and particularly vodka—is a natural disinfectant and can be used to clean a variety of surfaces in one’s home to help combat mold and mildew and kill germs,” says Mark Addison, TV personality, designer, and author of “Cocktail Chameleon.”

If traditional cleaning products’ harsh odors and chemicals are too much for you, the grain-based booze can be a good alternative since it’s easy on the hands and evaporates quickly. While we don’t recommend splurging on bottles of vodka for cleaning purposes, think twice before pouring any leftover vodka down the drain—unless you plan to clean the drain with it. (But were you really pouring vodka down the drain anyway?)

Note: There’s no need to shell out for premium vodka for this purpose either. Any type will do, although some experts recommend higher proofs for better cleaning power.

Here are some ways vodka can be used as a cleaning agent in the home. Cheers!

1. Clean kitchen appliances and surfaces

A filthy kitchen is enough to get anyone down. Put a mixture of equal parts vodka and water in a spray bottle, and spritz on grime and grease stains on your stovetop, backsplashes, and countertops. It can also shine your chrome faucets and cabinet hardware. You can also add a few drops of essential oil for a pleasant scent.

“The alcohol in vodka cuts through grease and oil,” says Leslie Reichert, author and green living expert. “Vodka is a great cleaner for stainless steel.”

But here’s a big, flashing warning notice: Vodka should not be used near open flames as it is flammable. OK?

2. Cut bathroom grime

Bathrooms get a lot of foot traffic so they can get awfully dirty, and bathroom fixtures can build up soap scum and hard-water stains. Just spritz some vodka on the mess, rinse, and wipe away the nastiness.

You can also get dark spots out of tile and caulk by spraying them with vodka, letting it sit for 30 minutes, scrubbing it away with an old toothbrush, and rinsing with water.

“Vodka can help with smells around the toilet, too,” says Reichert.

3. Make glass and mirrors cleaner

No one likes seeing streaks on the mirrors or glass. But with its solvent qualities, vodka can do away with even the toughest spots.

Combine equal parts water and vodka and add a quarter-teaspoon baking soda in a spray bottle. Spray and wipe.

“I’d recommend spraying glass or mirrors with the vodka, and then wiping with a fine woven microfiber cloth until completely dry,” says Reichert.

4. Remove sticky labels

Stubborn price stickers on items like toys and electronics are difficult to remove. Sometimes you manage to get the sticker off but the residue remains. Vodka can do wonders when it comes to dissolving sticker adhesive.

“Simply put a few drops of vodka on the sticker residue, let it sit for 10 minutes, and wipe it off with a paper towel for a squeaky-clean surface,” says Addison.

5. Clean jewelry

With everyday wear, jewelry can get dirty and start to look dull. But vodka can revive your favorite baubles.

“Another favorite use for vodka is to clean gold, silver, diamond, or other crystal gem jewelry,” says Addison. “Simply soak your jewelry in a watered-down vodka solution for 10 minutes, remove it, and brush the item with a toothbrush to get into the crevices.”

6. Refresh your laundry and more

Stinky clothes sometimes need a bit more of a punch to knock out those odors. Add a half-cup vodka to your load of laundry before running the washer.

It also works to deodorize other surfaces in your home. Get rid of sweat, cigarette, and other foul smells on your mattress, in your gym bag, or in your shoes. You can spray it directly on these items as the scent and moisture will evaporate and remove odors. (Proceed with caution before spraying anything on leather or other delicate materials.)

7. Remove stains from carpet

Accidents (and stains) happen. But when your normal carpet cleaner just won’t cut it, vodka can save you in a pinch. To get oil-based, grass, ink, or food stains out of your carpet using vodka, just soak, blot the excess liquid, and scrub.

8. Make a room diffuser oil

Vodka isn’t the first scent you gravitate toward when trying to freshen up the scent of your home. But we promise this recipe for a room fragrance won’t smell anything like a fraternity house.

Create an aromatic oil for your diffuser by combining a few tablespoons vodka with about 20 drops of your favorite essential oil and a quarter-cup almond or baby oil.

9. Repel bugs

Tired of getting eaten alive by mosquitoes? Put some vodka in a spray bottle, and spritz away those bothersome insects. The high alcohol content will keep them at bay.

The post Drink To This: 9 Ways To Use Vodka To Clean Your Home appeared first on Real Estate News & Insights | realtor.com®.

After nearly a year of being stuck at home during the coronavirus pandemic, many are trying to cope with the stress by tackling some long-overdue home organization projects.

“COVID has amplified the urge to organize, because we feel like we should be doing something productive and we can only watch TV or sit at a computer for so long,” says Ana Cummings of the eponymous home design firm.

But is “stress-organizing,” as it’s called, truly effective? Sometimes, nervous energy is the exact fuel you need to take on some decluttering. But certain home organizing tasks don’t lend themselves to anxious attacks—in fact, they might have the opposite effect and make you even more stressed.

“I don’t recommend organizing anything when you’re worried—how effective can you really be?” asks Julie Coraccio, a professional organizer at Reawaken Your Brilliance.

Some say that the key to successful stress-organizing may be to pick your battles wisely by selecting the right areas of your house to tame that won’t overwhelm you. For some help when you’re anxious yet also feel compelled to organize something, here are six areas of the house you should tackle—and three spots to definitely skip since they’ll likely drive you insane.

Do organize: The junk drawer

Photo by CHW Cabinetry

Cleaning out the junk drawer is an easy task for a newbie organizer, or someone who’s feeling stressed. It’s a small area that can often be completed in under 15 minutes.

“This spot is good because it can build confidence and you’re less likely to have an emotional attachment to the random bits inside,” says Coraccio.

Do organize: Kitchen counters

Photo by Manhattan Cabinets Inc 

Two more quick hot spots are kitchen counters and tabletops in the living room. You might set a timer and give yourself 30 minutes to zip around and clear away stuff.

“I aim to keep my kitchen and living space surfaces decluttered so that when I walk through my home, I know where to focus to keep a sense of peace and calm,” says Katie McCann, the organizing professional at Haven.

Do organize: The linen closet

Photo by NEAT Method St. Louis

Folding soft rectangles of fabric is soothing, and it’s easy to part with stained washcloths and frayed hand towels.

“Get rid of anything you don’t want or use, and then refold and organize by category so everyone in the household knows exactly which items go where,” says Cummings.

Do organize: The makeup or medicine cabinet

Photo by Organization & Relocation

“Ditch those free samples and half-empty tubes of whatever product you have, because they’re taking up too much real estate in your vanity,” urges Cummings.

A fast way to whip this little spot into shape is to insert drawer organizers or an old utensil tray—and if what you have doesn’t fit, purge some more.

Do organize: The crafts room

Photo by California Closets of Indianapolis

With the holidays over, midwinter is an excellent time to take on a crafts room or gift-wrapping station.

“Paper, ribbons, and art accessories can get pretty messy in a heartbeat, so it’s worthwhile to get this spot under control,” says Cummings.

Do organize: The freezer

Photo by Hill Farm Furniture Ltd

At last, you’ll finally see what’s lurking in this dark box once you toss those bags of peas and carrots from 2010.

“How amazing is it to get rid of a bunch of frozen, desiccated bananas—because are you really going to make banana bread?” asks Cummings.

Don’t organize: The attic

Photo by Case Design/Remodeling of Indianapolis

This area is a no-go as it’s likely filled with sentimental items (photo albums, your parents’ wedding china) that you should really consider with a clear head.

“You don’t want to throw away something of value either, so wait and take the time to get it appraised,” says Cummings.

Don’t organize: The home office

Photo by brownwilliam art + design 

You’d think this space is one you should clean up since a neat desk can make work tasks easier to accomplish. But your home office is one spot to hold off on.

“Paperwork takes a ton of time to sort and figure out with very little visible reward,” says McCann.

In short: You’ll quit this area quickly since it’ll feel like you’re getting nowhere.

Don’t organize: Your clothing

Photo by Mountain Sky Closets

You might be able to sift and sort through your shoes and boots or even scarves and hats, but when it comes to actual clothes, this spot should be skipped.

The clothes closet requires a steady mind and a couple of hours to try on items and carefully consider whether they’re worth keeping.

“I’d also avoid this area if you’ve gained some weight due to COVID, which is very common as we’re all less active lately,” says McCann.

The post 6 Fantastic Areas in Your Home To ‘Stress-Organize’—and 3 That’ll Just Make You More Stressed appeared first on Real Estate News & Insights | realtor.com®.

“House Party” is realtor.com®’s official podcast about the overlapping worlds of real estate and pop culture, hosted by Natalie Way and Rachel Stults. Click the player above to hear our take on this week’s hot topics.

Ty Pennington easily takes the title of the OG of home renovation shows. With his pivotal roles on “Extreme Makeover: Home Edition” and “Trading Spaces,” Pennington cemented himself as a construction and design expert with a larger-than-life personality. Throughout the years he’s remained in the reality TV world, but he’s recently found a home at HGTV with two brand-new hosting gigs, on the shows “Ty Breaker” and the upcoming second season of “Rock the Block.”

This week we had the pleasure of catching up with Pennington, getting the dish on his latest TV shows, and finding out what else he’s been up to—both on and off screen.

Want more “House Party”? Subscribe on Apple Podcasts, Google Play Music, Spotify, or wherever you get your podcasts. And please: Throw us a five-star rating if you like what you hear. The more good ratings and reviews we have, the easier it is for people to find us.

Want to chime in? Have your own crazy home-related story you’re dying to share? We’re all ears, eagerly waiting to discuss all of your burning real estate questions on “The Mailbox” segment. Email us at [email protected], follow us on Facebook and Instagram, or tweet us @housepartypod on Twitter.

The post ‘House Party’ Exclusive: Ty Pennington Talks HGTV, His Design Pet Peeve, and His Most Extreme Makeover Yet appeared first on Real Estate News & Insights | realtor.com®.

Ikea has finally jumped aboard the tiny-house trend.

This megaretailer of budget-friendly home decor has just unveiled its first tiny house, which measures a mere 187 square feet.

While Ikea created and designed this unit, it isn’t selling it quite yet, as this was just a one-off—a collaboration with Vox Creative and tiny-home builder Escape, meant to showcase how homeowners can create “a small space that can be stylish, affordable and sustainable,” according to Ikea.

Still, if you’re really into the look, the folks at Escape can help you create your own design (for $47,550) using their BOHO XL Wide (shown above) as a starting point.

In keeping with its eco-friendly design, the partners in Ikea’s tiny-house collab strove for all things green, including solar panels and a compostable toilet, as well as interior wall panels made with sustainable pine and kitchen cabinets crafted from recycled bottle tops.

But while minuscule pre-built homes are all the rage of late (Amazon has one for just $36,000), is this type of structure really made for human beings to live in full time?

We reached out to building experts to break down all the construction details entailed in Ikea’s tiny house (and others) so you can fully weigh whether this type of lifestyle is right for you. Just be warned, there are a few huge catches you’ll want to know.

Where will you put your tiny house?

Truth: This isn’t exactly a house—it’s a box on a trailer—and since you can’t ride around in it all the time, you’ll need to park it and do so legally.

“A house usually comes with a tract of land that you also own, so for a tiny home like this one you’re going to have to own or pay rent on a piece of property,” says Tyler Drew, a home builder and CEO of Anubis Properties in Los Angeles.

But if you’re already a homeowner with some backyard real estate, you could use this tiny home setup as a granny pod or for office space, especially since the work-from-home trend is likely to hang on for much of 2021.

How will you tow your tiny house?

As tiny as this home is, you can’t really cart it around with a Mini Cooper or a Prius.

“On top of the cost of this structure, you’re going to need something beefy to tow it to your destinations,” says Drew.

Ready for the math? You’ll have to come up with an extra $50,000 or so for a truck with enough horsepower to tow a tiny house.

If you want to skip the travel portion and live in a permanent spot, this probably isn’t the structure for you.

According to Escape, this tiny home isn’t meant to sit on a foundation, although Drew says you could probably erect a foundation anyway for around $20,000. Still, the cost of this tiny dwelling is adding up fast.

Does this tiny house have enough electricity and hot water?

Although Ikea’s tiny house runs on solar power, “a hot water heater needs a tremendous amount of electrical power that probably can’t be provided by the amount of solar panels pictured here,” Drew points out.

So if you’re hoping for a hot shower along with enough juice for a reading light or morning coffee, you’ll need to outsource this added power. Luckily, Ikea’s tiny house also comes with a simple plug you can insert into a power source for extra juice.

“Trailers like these have a large cable and a hose connector like the ones found on RVs—and most RV parks operate with power and sewer connections so you can hook it up to utilities that way,” says Drew.

Is this tiny house insulated from cold and heat? 

Since there’s no foundation here, that means “there’s just four wheels and a jack stand between you and the ground,” says Drew.

And with no buffer from the cement or hard-packed dirt, you’ll definitely struggle to keep this house warm. (Cold air will come right up from below.)

And while the flat roof is great for solar panels, prepare yourself for the heat.

“With all the windows here and what looks to be a metal roof, this thing is going to cook in the summer,” Drew adds.

All in all, Ikea’s first tiny house may be cute, but it’s not as turnkey as you might hope.

“From what I’ve read, the basic price point doesn’t include all the options you might be used to,” says Josh McCormick, vice president of operations at Mr. Electric. “Count on spending upward of $19,000 for a washer-dryer combo, a bigger bathroom, and an upgraded fridge and range.”

Will you have enough room for all your stuff?

It also goes without saying that in this tiny house or others, you’ll need to shed most of your belongings.

The kitchen has room for a small set of dishes, a couple of pots, and just a few forks and knives, while the bedroom area offers about the same space for clothing that you had in your summer camp trunk as a kid.

That said, you have to hand it to Ikea—it’s got the hygge look down pat. With casually draped sheepskins and blond wood details, you can see yourself nestled here for weeks working on your novel, with scented candles and a steaming cup of tea nearby.

Should you buy an Ikea-style tiny house?

Frankly, Drew and other construction experts think that owning a manufactured home or a one-bedroom condo would be a whole lot easier than Ikea’s tiny house, and probably end up costing about the same price.

In many places in the U.S., “There are brick and mortar houses for sale for under $47,000, and most are quite livable,” says Drew.

Plus, you’ll need cash upfront to secure this tiny home.

“No one is going to lend you money for a home that can up and move at a moment’s notice,” says Drew.

In other words, wherever you buy a tiny house—from Ikea or otherwise—make sure to do the math, and you might realize that living here might require a bigger pile of cash than you’d ever imagined.

The post Inside Ikea’s First Tiny House—and a Few Huge Catches Under the Hood appeared first on Real Estate News & Insights | realtor.com®.

A federal judge has delivered a potential blow to the national eviction moratorium first issued under the Trump administration.

J. Campbell Barker, federal district judge for the Eastern District of Texas who was nominated by President Trump, ruled that the powers granted to the federal government in the Constitution to regulate interstate commerce did not give it the authority to issue a national ban on evictions amid the COVID-19 pandemic.

The ruling came in a lawsuit filed in October by a group of Texas landlords who claimed they were owed thousands of dollars in unpaid rent and that the moratorium violated their property rights. It is one of many lawsuits filed in federal courts seeking to overturn the eviction ban.

The U.S. Centers for Disease Control and Prevention first issued its national eviction moratorium in early September under the Trump administration. Public-health officials argued that the moratorium was necessary to keep struggling renters housed, and that a massive wave of evictions could hasten the spread of the virus that causes COVID-19. Under President Joe Biden, the CDC opted to extend the eviction moratorium to give renters more protection as the pandemic continues.

“No federal law requires that a landlord give possession of a dwelling in the first instance to a person who cannot pay rent and who would otherwise live in congregate housing,” Barker wrote in his decision. “The federal order against evicting such persons is thus not supportable as a backstop to avoid undercutting such a broader regulation.”

Barker also noted that the federal government’s lawyers were unable to point to any other instance where federal officials had blocked evictions before, including during the Spanish Flu pandemic. “The federal government has not claimed such a power at any point during our Nation’s history until last year,” Barker wrote.

Consumer advocates countered that the CDC’s order has been upheld by other federal judges until now. “The CDC and state moratoria have overwhelmingly been upheld as constitutional and are helping to stop the spread of COVID-19 — something we urgently need until the pandemic is controlled,” said Emily Benfer, a housing and public health lawyer.

As of now, Barker has opted against issuing an injunction in the case, which means that renters are still protected by the CDC’s order, legal experts said. However, Barker noted that plaintiffs in the case could request an injunction in the future should the federal government not heed his decision in the case.

“A national injunction would have disastrous effect, putting tens of millions of people at immediate risk of losing their homes during the pandemic,” Diane Yentel, CEO and president of the National Low Income Housing Coalition, said. “In the meantime, some landlords may cite this ruling as they continue to pursue evictions despite the protections under the moratorium.”

On Twitter, Yentel argued that “the CDC must appeal immediately.” Others suggested that federal lawmakers could step in to protect renters across the country.

“Congress can put an end to these disputes, which only create confusion, by bolstering the federal moratorium and swiftly passing rental assistance to scale with the crisis,” Benfer said. The $1.9 trillion aid package that the House of Representatives passed included billions of dollars in additional emergency rental assistance, among multiple forms of housing-related support.

Many Americans nationwide continue to face eviction despite the CDC’s order. A recent report found that corporate landlords had begun to pursue more than 40,000 evictions since the moratorium first went into effect.

The post Federal Judge Says CDC’s Eviction Moratorium Is Unconstitutional, but Advocates Argue That Renters Are Still Protected appeared first on Real Estate News & Insights | realtor.com®.

“Congratulations, your offer was accepted!”

Those words are cause for celebration for every prospective homebuyer—and especially so when vying for a home in a hot housing market. Although there are factors when competing with other buyers that are beyond your control, there is one step that will give you an edge: Start your home search process by getting a Verified Approval Letter (VAL), an underwritten offer that shows sellers your financing is verified.

Buyers in 2021 are facing a market with low inventory and lots of competition. Any extra certainty helps.

Thankfully, in a time when buying a house feels daunting, the process of actually getting a VAL is relatively straightforward. With online tools like Rocket Mortgage® by Quicken Loans®, it’s easy to enter your information and connect accounts to share necessary documents. From there, it’s a quick process to connect with a Home Loan Expert who performs a full analysis of factors like credit scores, debt, income and employment status, then sends you on your way with a Verified Approval Letter so you can shop with confidence. Not to mention how helpful it can be to ask questions during a no-obligation conversation with a Home Loan Expert from America’s largest mortgage lender.

I can speak from personal experience with buying a home in a very hot 2020 market. Unlike when my husband and I purchased our first home several years ago in a buyer’s market, our experience in a seller’s market called for us to do more prep work to compete with multiple offers. From our very first meeting with our Realtor®, she made it clear that just being pre-approved may not be enough. She stressed the importance of taking extra steps to show sellers we were serious and ready to buy—before even touring a single home. One level above a pre-approval letter, a VAL signaled we meant business and put us on a more level playing field with prospective buyers who could make cash offers.

Unlike with a pre-qualification, getting a VAL requires pulling credit scores. However, we knew we’d have to take this step in our home buying process eventually, so the slight ding to our scores was a non-issue when compared to the benefits of the VAL. In a market where moving quickly is key, having these steps done ahead of time meant that there was no down time once we were ready to make an offer. With this pre-approval, we could show sellers, yes, we could afford homes up to a certain amount and, no, our financing wasn’t going to be an issue for closing.

I am grateful we took our agent’s advice to check this task off the list before looking at houses. We soon realized that houses would come and go in a single day in our market. If we found one we wanted, the last thing we needed to do was scramble to get a pre-approval letter. By getting a VAL in advance that is valid for 90 days, buyers can be confident they can be competitive when ready to make an offer.

At the same time, going through the pre-approval process helped us get a clearer picture of what we could afford. Although we couldn’t control the ever-changing mortgage rates and how that would affect our ultimate payments when we purchased a new home, we knew how much we would be approved to spend on a home. It also gave us a chance to assess our real comfort level with our budget, which led us to set our personal “max” below the pre-approval figure. With a VAL, the Rocket Mortgage® app makes it easy to customize your approval amount to match your desired offer amount, or adjust on the fly if this amount changes.

All the while, we were also preparing to sell our home—which, let me tell you, was a very different experience! In this position, we knew we could confidently expect a handful of competitive offers within days of listing our home. Again, our Realtor® counseled us to take into account whether a potential buyer had a pre-approval letter. We knew that if we were looking at two side-by-side offers for the same amount, the buyer who came with a locked-and-loaded VAL would win out.

After practicing patience and having a bit of luck, we were able to confidently make an offer on a home that checked all of our boxes. Even in a hot market, that one offer was all it took: Our bid backed by a pre-approval was accepted!

Although our lender still needed to consider the home’s appraisal value, condition and title before giving us the official approval, we were glad to know our finances weren’t going to hold up the process. When we turned around to list our first house, we were thrilled to get a number of offers within the first few days—and ultimately went with a buyer who had a pre-approval letter.

I can say from experience that buying a house in a competitive real estate market is an exercise in coping with a lot of unknowns. From waiting for the right house to hoping the seller will accept your offer, learning how to take deep, calming breaths is a helpful skill to have. With a Verified Approval Letter, though, you don’t just have to cross your fingers and hope for the best—you can actually give yourself an advantage.

– Emily Glover

Ready to get started? Rocket Mortgage® is ready to help. Tell us a little bit about your goals and we’ll help you take the next step.

The post What Is a Verified Approval Letter—and How It Helps in a Competitive Market appeared first on Real Estate News & Insights | realtor.com®.

If you’re anything like us, you’ve looked around your home more than a few times over the past year and wished you could hire a designer to instantly elevate your space. But alas, for whatever reason—you don’t have the budget, or you’re lying low during the COVID-19 pandemic—professional design help just isn’t in the cards right now.

Don’t despair! We’ve got the next best thing: Instead of shelling out for an expert, we turned to Instagram (as we always do) to bring you design inspiration, with an eye particularly on the kitchen. We scrolled through the most liked posts to ID the biggest trends that you can replicate yourself.

These looks are guaranteed to bring some soul back into your kitchen and convince everybody you know that a pro pulled it all together.

1. Dusty blue cabinets

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A post shared by 𝐸𝓂𝒾𝓁𝓎 | 𝒜𝒸𝑜𝓇𝓃 𝒞𝑜𝓉𝓉𝒶𝑔𝑒 (@acorn_cottage_)

We’re all about the bright springtime vibes of these blue cabinets from @acorn_cottage_.

“It has been determined that more people favor blue more than any other color,” says John Starck Jr., president and CEO of Showcase Kitchens. “The design community no longer relies on bland hues as neutrals. Today, muted shades serve as neutrals that work well with a variety of tones and don’t compete with stronger shades. Dusty blue is an obvious go-to color.”

Get the look: Revamp your kitchen cabinets with a can of Faded Flaxflower.

2. Paneled appliances

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A post shared by Divine Design Decor (@divine_design_decor)

If you’re hoping to give your kitchen a more polished look with one change, look no further than these paneled appliances featured by @buildwithdavies.

“Although kitchen appliances have become sleeker and much more refined and luxurious, they are still a rather sizable part of kitchen decor,” says Kobi Karp of Kobi Karp Architecture & Interior Design. “The use of paneling allows a homeowner to maintain the functionality of the space without interfering with the visual harmony. It also has the added benefit of giving your kitchen a more high-end, custom feel.”

Get the look: Shop this selection of paneled appliances from Lowe’s.

3. Carriage house pendant lights

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These carriage house chandeliers featured by @andrea.wiele are a dreamy way to upgrade your kitchen lighting.

“A carriage chandelier, with its sleek silhouette and its straight lines, can add a level of sophistication to any room,” says Karp. “They serve as an eye-catching focal point or as an accent piece to highlight a room’s design aesthetic. These chandeliers add a dash of industrial chic and are surprisingly versatile as well.”

Get the look: Shop this lantern rectangle chandelier from Wayfair.

4. Low-back stools

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Old kitchen stools got you down? Then it’s probably time for a sleek upgrade, like these low-back stools from @mylightingsource.

Not only will these stools lend some modern chic to your kitchen, but they also boast a low profile—meaning you can use them when you need them and otherwise store them away.

“Low-back stools are an amazing addition to any kitchen island, and come in many different designs and fabrics,” says Karp. “You’ll want to find a style that’s functional and provides a good level of back support, while still being low-profile enough to easily stow away under a counter.”

Get the look: Get some minimalist chic going in your kitchen with these Lachapelle swivel counter stools from Wayfair.

5. 360-degree wall hooks

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A line of wall hooks running around the entire room, as shown by @zioandsons, is the epitome of function meets style.

“Wall hooks have moved beyond pure utilitarianism and can now add a decorative zest to a space,” says Karp. “They allow for functionality as additional storage space without the need to add excessively bulky cabinetry. Hooks also come in a variety of styles and finishes, which allow them to be easily integrated in any kitchen.”

Get the look: Shop this variety of bronze wall hooks from Etsy.

The post 5 Kitchen Decor Trends From Instagram That’ll Look Like You Hired a Designer appeared first on Real Estate News & Insights | realtor.com®.

Whoever decides to buy the castle in the Indianapolis suburb of Irvington will have to leave room in the family budget for the neighborhood’s favorite holiday.

“The Halloween festival is massive. We’re talking 50,000 people at the Halloween festival, and on Halloween night, you get anywhere from 1,000 to 2,000 trick-or-treaters. I set aside some money for my candy budget,” says Emily DiGiusto, who owns the residence with her husband, Dennis.

The welcoming porch at the house with the turrets on University Avenue is a perfect place to greet trick-or-treaters.

Multiple offers above the asking price of $385,000 came in after the property, the most prominent house in the neighborhood, had been on the market for only three days.

“The towers really make it stand out. If it didn’t have the towers, it would just look like a cool Victorian Gothic house—but it wouldn’t have that sort of defining feature,” DiGiusto says.

The smaller octagonal tower at the back of the house is easily accessible from the main-floor family room and from the second-floor bedroom.

“Our kids had a massive beanbag there, with lots of stuffed animals, and it was the perfect spot to read,” DiGiusto recalls.

The larger main tower at the front of the house isn’t as easy to access. It’s on the second floor above another reading nook, through a trapdoor on the ceiling.

“You have to use a ladder to the ceiling access panel,” DiGiusto says. “And then, on the third floor, there’s another ladder up there to get up to the very top, where four windows are, that face out in every direction. It’s never been finished off, and it does have amazing views.”

She adds that the family initially had plans to put in a spiral staircase, but never got around to it.

Built in 1876, the house, known as Irvington Castle, was also once known as the Johnson home, after the man who built it, Eudorus M. Johnson, a son of a founder of the suburb of Irvington.

At one point, the 4,689-square-foot house on one-third of an acre was turned into apartments, but it was converted back into a single-family home in the 1980s.

As currently configured, the residence has three bedrooms and 2.5 bathrooms, many with historic features. The house has six original fireplaces.

“The three on the bottom floor have been updated, and the three upstairs in the bedrooms are blocked off,” DiGiusto explains.

DiGiusto says that although the house is imposing, it doesn’t have a formal or unapproachable atmosphere. The wood floors, stairs, and other vintage accents give the large rooms character.

“It’s more the ceilings are 12-foot tall, and the rooms are massive, and it has all these beautiful fireplaces and beautiful moldings,” she adds. “It has a good feel to it, a good vibe of good energy.”

She says the current kitchen and the laundry/office were part of a 1910 addition to the original house. A detached garage was added to the property in the 1940s or ’50s.

The house is just across the street from a circular park with a fountain, where summer concerts are held and many holiday events take place.

Since the house is in a historic district, owners are not permitted to make changes without the approval of a preservation council.

DiGiusto says potential buyers must understand that this isn’t a starter home, and should be ready to assume responsibility for the task of caring for the building.

She said the ideal buyer would be someone “interested in history and restoration” who is willing to play a part in the life of the community. Since the property is 140 years old, a familiarity with old homes and what it takes to maintain them would be helpful, she says.

The listing agent for the home is Molly Hadley.

The post Built in 1876, This Indiana Castle Is a Lovely Local Landmark appeared first on Real Estate News & Insights | realtor.com®.

After moving into a massive, $25.8 million Beverly Park compound, the pop star Justin Bieber and his wife, the model  Hailey Baldwin, have officially sold their smaller—but still very spiffy—spot in Beverly Hills, the Los Angeles Times reported.

The listing came on the market about a year after they had picked up the property in 2019, for $8.5 million. An $8 million deal on the home closed last week—so the hit-maker took a hit.

The couple had originally placed the home on the market for $9 million in the fall of 2020. It reportedly sold fully furnished.

Real estate ‘changes’

After settling down and buying the gorgeous traditional, which dates to the 1930s and is known as “The Tropics,” Bieber and Baldwin quickly desired some changes when it came to their real estate choices.

Bieber announced to his Instagram followers his intention to unload the property, and in the fall of 2020, placed it on the market with a $9 million price tag.

“I think I wanna sell my home in Beverly Hills who wants it,” the Grammy winner teased to his followers.

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On another post, he added, “I’ll sell it with all the furniture. MAKE AN OFFER.”

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While Bieber and Baldwin decamped to a deluxe estate in an exclusive area, the place they left behind is also very upscale. In fact, it’s next door to the compound owned by the billionaire founder of Amazon, Jeff Bezos.

With 6,132 square feet of living space, the residence, which was completely redone, comes with five bedrooms and seven bathrooms.

The stylish layout features white oak floors, custom built-ins, and seamless indoor-outdoor living. Steel-case windows and doors open up to the property grounds.

The interior offers a living room, great room, office, theater, and a wine cellar with a bar. The sleek chef’s kitchen includes white oak cabinets, a marble island, and Wolf and Sub-Zero appliances.

A master suite features vaulted ceilings, a fireplace, bathroom, and custom closet.

Surrounded by tall, lush greenery, the backyard boasts an infinity pool, a water feature, barbecue, and a cabana with a fireplace.

Meanwhile, the furnishings that come with the place are pitch-perfect with the interior design.

Beverly Park pad

The couple didn’t go far, and they scored a deal in the process. They upgraded to a much bigger property on 2.5 acres with almost double the square footage, at 11,000 square feet.

Amenities include a large living room, library, dining room, eat-in kitchen, and adjacent family room. The spread also features a home theater, wine cellar, and gym.

The sprawling grounds sport an infinity pool, sport court, lawns, a koi pond, and barbecue with pizza oven.

On and off the market since 2018, the posh property was once the most expensive new listing on realtor.com®, at $42 million.

Following an initial lack of interest, the place received an interior refresh and the price was dropped to almost half the original ask. The couple appreciated the huge discount when they snapped up the gated property for $25.8 million.

Now that the deal is done on their initial foray in Beverly Hills, the couple can fully move on.

Joshua Altman with Douglas Elliman represented the seller. Steven Schaefer with Newmark Residential repped the buyer.

The post Justin Bieber Takes a Loss, Sells Beverly Hills Home for $8M appeared first on Real Estate News & Insights | realtor.com®.