Michelle Violet, Realtor - Coldwell Banker Heritage

03/17/2025

Happy Closing Day to Yong & Caitlin! 🥂
Officially homeowners!!
❤️ when friends turn into clients. Congratulations!

10/26/2024

🍫🍬🎃

Trick or Treat is just around the corner! Curious when? Here are the times your community is celebrating.
. https://bit.ly/4dNYABq

07/12/2024

Congratulations Matt on the purchase of your very first home!

We learned today that the seller who grew up in the home actually went to school with Matt’s parents. Small world and so cool to see things come full circle 💙

Congratulations Matt & thanks for letting me be part of the journey!

06/16/2024

Happy Father’s Day to all the Dad’s, today is your day!

05/12/2024

04/12/2024

This stat suprised me…
According to the Federal Reserve, a homeowner's net worth is a staggering 40 times greater than that of a renter.
Let's also acknowledge:
Conditions have NOT been the friendliest for first time buyers.
But here’s some really good news →

Jerome Powell has alluded to 2 or 3 interest rate cuts in 2024

The average age of a first time buyer is 36

In our market, we’ve had luck finding options for buyers that are on par with rental prices

I had a client who was curious about her buying options. We found a home on par with her rent. It checked all the boxes for this phase of her life.
Her plan is to live there for 4-6 years and then use it as a rental and move along to her next home.

A few reasons this client chose to buy:

Homeownership is a form of "forced savings" that will lay the groundwork for her next move.
She saw this home as a piggy bank that grows from her contributions AND appreciates over time.

Source:
https://www.hfamiami.com/single-post/a-homeowner-s-net-worth-is-40x-greater-than-a-renter-s #:~:text=One%20of%20the%20best%20ways,than%20that%20of%20a%20renter.

04/10/2024

Asking your lender this ONE question could save you big.

Does my loan have a pre-payment penalty?

Making just ONE extra payment each year can shave years off your mortgage term and save you thousands in interest.

Let’s look at a client with a 30-year mortgage of $400,000 at a 6% interest rate. Without extra payments, the total interest paid over the loan term is approximately $463,353

With ONE extra payment of $2,400 each year ($200/mo) the interest drops to $368,734, and the loan would be paid off 5 years earlier than the original term.
And the savings hitting their pocket? $94,619 over the life of the loan
BUT Make sure to ask your lender about pre-payment penalties (penalties can be steep - often 2% of the loan balance).

Check with your lender so you can save on your timeline.
And if you need a lender recommendation, send me a message!

04/01/2024

Your best friend in real estate?
It's your credit
I always have my buyers get familiar with the 4 C's of building credit so they're prepared to receive the best loan terms possible.

Credit: This is a reflection of your financial past. Do you consistently make payments on time? If yes, lenders perceive you as less of a risk and more likely to approve your loan application.

Capacity: This is your ability to repay a loan based on your income and employment history. It's not just about having the funds but also about a track record of financial stability.

Capital: Assets or cash reserves can be used to repay your loan if your income isn’t enough. It's like a safety net that lenders look for when deciding whether to approve your loan.

Collateral: This is something of value that you can pledge as security against the loan. In case of default, it can be seized by the lender. In the context of real estate, the home itself often serves as collateral.

Good credit is essential because it directly impacts your mortgage approval prospects, competitive interest rates, and down payment requirements.
On the other hand, a subpar credit score can make securing the best terms challenging, but don't be discouraged if your credit isn't perfect right now.

Building a strong credit takes time and dedication. Small steps can lead to significant improvements.

03/29/2024

"That's a write off!"
It's a phrase I commonly hear thrown around. But, not so fast... it turns out not all home improvements are treated equally from a tax perspective.
Let's break it down:

Home Office Deduction:
To claim a deduction, you must have a dedicated and exclusive workspace. Using your dining table unfortunately doesn’t qualify here.

Rental Properties:
When updating rental properties, you won’t be able to deduct the renovation costs.
But, expenses like mortgage interest, property tax, operating costs, depreciation, and repairs are usually eligible deductions to take. Keep a running tally of these expenses.

Residential Medical Upgrades:
Expenses related to improving medical accessibility are deductible. This includes constructing entrance or exit ramps, widening doorways, installing railings or support bars, and making bathroom modifications.

Energy-Efficient Improvements:
Consider energy-efficient upgrades. Things like installing solar panels, solar water heaters, small wind energy turbines, geothermal heat pumps, fuel cells, and biomass fuel stoves qualify for various tax benefits.

Home Sellers Deduction:
If you make improvements to your home before selling it, they can increase your home's basis (purchase price + improvements), reducing capital gains and, in turn, lowering the taxes you'll owe. Keep a running spreadsheet of those improvements!

Make sure to collab with a tax pro to maximize your deductions.

Source: Which Home Improvements Are Tax Deductible?
Tips on Rental Real Estate Income, Deductions and Recordkeeping | Internal Revenue Service

03/27/2024

03/25/2024

What is the “Lock in effect”??
An unwillingness on the part of homeowners to trade in their lower-rate mortgages for higher ones.

Here’s where this trend stands today:
In Q3 2023, fewer Americans had mortgages below 6% than in 2022 due to moving. And what causes people to move regardless of interest rates? Major life events, including the 5 D's: diapers, diplomas, diamonds, divorce, & death

• Between Q3 2022 and Q3 2023, more homeowners chose to move, accepting higher mortgage rates.

•The lock-in effects still contributes to inventory shortages, but listings have started to rise due to slightly lower rates (under the 8% peak of 2023).

• Homeowners with historically lower mortgage rates (between 3% and 4%) are more likely to “suffer from” the lock-in effect than those with rates between 5% and 6%.
Rather than focusing on the rate, I’m telling buyers to focus on the affordability of the monthly payment.

Source: Is the Lock-In Effect Fading? How to Help Homeowners Navigate Today’s Interest Rates

03/22/2024

The pandemic broke out 4 years ago this week.
This is what's happened since...

The collective amount of U.S. homeowners’ equity has grown from $16 trillion in 2018 to 31.6 trillion (as of Q2 2023).
Annnd... The average U.S. homeowner now has nearly $290,000 in home equity, up from $182,000 pre-pandemic.

That's a $108,000 jump in less than 5 years. Not too shabby for an investment, huh?

Source: https://www.bankrate.com/home-equity/home-equity-and-building-generational-wealth/ -its-important