In this series, NerdWallet interviews new homeowners across the country about their unique homebuying journeys and the financial decisions that helped them get there.

The Atlantic in 2014 declared that the “most hipster thing” you can do is move to Des Moines, Iowa.

As one of the fastest-growing cities in the Midwest, Iowa’s capital is still where many of the cool kids — and techies — are heading. (Facebook and Microsoft both have data centers there.)

To explore what it’s like to settle there, we talked with Lindsey Beard, a 25-year-old training development specialist, about moving to Des Moines a few years ago and buying her first home there this year. We also asked her real estate agent, Paul Walter, to share homebuying tips. (This transcript was lightly edited for clarity and length.)

What brought you to Des Moines?

I was born and raised in the Midwest. I grew up in the Quad Cities and went to the University of Northern Iowa for undergrad. I moved to Des Moines in 2015 from Cedar Falls, about two hours away, to work at John Deere.

» MORE: Compare the costs of living in different cities

Why did you decide to buy a home in Des Moines?

I didn’t start thinking about [buying] until a year ago when I realized that if I stayed within a certain price range, I’d be able to pay less for a mortgage than rent. Once I knew I was going to settle down in Des Moines, it was an economically smart decision to make. It’s nice knowing the money is going toward something.

What were you looking for in a home?

I wanted an older house, something with character and charm. My boyfriend Nick and I were moving in together, so we wanted two bedrooms and two baths, an unfinished basement for his “man cave,” and a fenced backyard because we have a dog. We also wanted a big deck.

I drove through a lot of neighborhoods and drilled it down to the Beaverdale area, which is known for old, timeless brick houses and lots of trees and families.

What was your homebuying journey like?

Six months before our lease ended, I started looking at houses. I probably inquired about 10 to 15 houses in those six months, knowing I wasn’t going to buy yet.

We looked at one in Beaverdale which I thought for sure would be the one, but it didn’t feel right when we were touring it. Nick and I were excited about the next one we looked at. It had three bedrooms, two bathrooms, a basement and wooden floors.

We looked at two more, but I couldn’t stop thinking about that one, so we walked through it one more time. I put in an offer on January 21, 2018. I was bidding against two other couples, which was stressful. I went $2,500 over asking price and had to give $1,000 in earnest money. We moved in mid-February.

How did you know that the home was the one for you?

I love old wooden floors; they were restored and original to the property. The windows are huge and let in a lot of natural light, which I loved. The overall layout of the house is nice. It had a big, beautiful deck out back. But the best thing about the house is that the major items that would eventually need to be replaced — the roof, concrete slabs for the driveway, windows and plumbing — were all new and updated.

What’s your approach to finance, and how did you save for the home?

My big thing was figuring out how much I could spend on a home, which narrowed down the neighborhoods. I wanted to stay under $200,000 and ended up paying $162,000. We used the leftover money for furniture and home improvements.

I had been saving for a while, but especially in the last six months before my lease ended. I had a set amount transferred to savings from each paycheck right away and took leftover money from each pay period and put it toward my down payment. I also chose to buy right after I got a work bonus and tax return money.

I got a lot of guidance from my mom. She’s the main reason why I started saving so early to buy. She was upfront with me about expectations and challenges, and the biggest one she told me was that a lot can go wrong between putting down an offer and closing.

Now [my boyfriend] Nick lives with me and pays me rent. We’re able to split all bills like utilities and internet. We don’t have combined accounts, but we know our budget and what we expect to pay every month. We don’t go out to eat as much now that we have our own kitchen and make our own meals.

» MORE: How much house can you afford?

Were there any surprises or challenges? Would you have done anything differently?

There were a lot of moving costs I didn’t anticipate: getting the locks changed, buying stuff for the house and replacing curtains left by the previous owner that were covered in black cat hair. Unexpected things come up, so you have to be financially ready to take that on.

I love my house and I know I made the right decision, but I should have looked a bit more just to solidify that decision.

What advice would you give to someone considering moving to Des Moines?

It’s a really good place to buy a starter home. The housing market is hot right now, so you have to act quickly. If you don’t jump on an opportunity, you’re not going to get it.

Advice for first-time home buyers

We spoke with Paul Walter, the real estate agent who helped Beard find her home, about the housing market in Des Moines and what first-time home buyers need to know.

Have your financing lined up. Des Moines is a seller’s market right now, so get your financials ready before you even start to look. “Some of these houses have five offers or more at once. You won’t win a multiple-offer situation if you don’t have a preapproval letter attached to your offer,” Walter says.

You don’t have to put down 20%. The traditional 20% down payment isn’t required for Des Moines. “You can get away with 3% or 3.5% — or even no down payment for some of the rural communities,” he says.

Beaverdale and Waukee are great areas for buyers who are looking for a home for less than $250,000.

If possible, opt for a shorter inspection period. It’s one way to stand out in a seller’s market. “Sellers want short inspection periods. Ten calendar days is better than 10 business days,” Walter says.

The article How I Bought a Home in Des Moines, Iowa originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Tile, typically a bathroom and kitchen flooring essential, has been used in more home-design applications in recent years. Today’s hardwood-simulating planks, subway and marble-look tiles, as well as other new textures, patterns and shapes, are among the most popular home trends.

From flooring to walls, tile is literally a cool and in-demand design element for modern builders and improvers. Here’s how to plan, budget and implement your tile installation project.

Tile installation considerations

Tile has always been best-suited for bathrooms, mudrooms and kitchens. It’s perfect for areas that may encounter moisture because it’s durable, easy to clean and water resistant. Today, even more rooms are getting a tile makeover.

The reasons for tile’s popularity include:

• Tile is cooler on your feet and a favorite in warm regions.
• Tile installation is less expensive in warm regions.
• Printing technology allows for nearly endless design possibilities.

The tile rating

For floors, make sure that the tile you choose is rated for flooring.

“You cannot put wall tiles on the floors. It will not hold up to the foot traffic, you can slip on it and, also, it can crack,” says Debbie Gartner of Westchester, New York, a blogger at theflooringgirl.com.

Floor tiles can be used on walls.

The location

If it will be installed in wet or moist areas, such as baths and entryways, the tile should be slip-resistant.

Regional housing differences

Gartner notes that labor costs vary by where you live. In warmer areas of the nation, tile installation costs are likely to be lower, compared to costs in the mid-Atlantic, the Midwest or the Northeast.

That’s because houses in warmer regions are often built on slabs, Gartner says, with concrete subfloors.

“You can install the tile directly on top of that,” she says. “The labor is often less expensive because there’s less you need to do.”

In the nation’s cooler climates, houses are typically built with plywood subflooring, so there are higher material and labor costs due to the additional preparation required.

» MORE: See costs of other home improvement projects

How to budget for tile installation costs

National estimates are practically useless. For example, Fixr.com, a service referral site, says the average cost to install tile flooring for a 200-square-foot area is between $700 and $2,000. That’s a mighty broad range.

HomeAdvisor, a service-pro referral site, gets a bit more granular, saying that the average per-square-foot price of tile ranges from $1.30 for ceramic to $7.50 for marble.

There are many pricing variables beyond simply the type of tile, including:

• Old material removal.
• Subflooring preparation.
• Costs related to flooring changes, such as electrical and plumbing modifications.
• And general installation labor.

Forget ballparking. Gartner says to take a more direct route to budgeting by getting real-life estimates. She should know; Gartner owned a flooring store for more than nine years.

“The best way to budget is to get estimates,” she says. “Start with what you want. Pretend for a second that budget doesn’t matter.”

Consider whether you want tiles everywhere, just in some rooms or as accents. “Then get three contractors to come in and give you an estimate,” Gartner adds.

After receiving “the budget doesn’t matter” estimates, you can begin finding ways to reduce costs and prioritizing what you want to spend your money on.

“Sometimes, if you switch materials, it will impact the labor,” Gartner advises. “Natural stone is a good example. That will cost you more on the labor.”

How to reduce tile installation costs

There’s not much you can do about the labor costs in your area, but there are ways to reduce your project’s total ticket:

• Choose a less-expensive tile, which can lower your product and labor costs.
• Reduce tile coverage to fewer rooms or smaller areas.
• Trim other project costs, such as not replacing a tub or vanity in a bathroom, or forgoing a kitchen island.

Does tile enhance the value of your home?

Most major home improvements add to the home value, but few, if any, return your total investment in materials and labor. Hardwood floors generally add more value than tile flooring, Gartner says.

New wood flooring recovered 91% of its cost, according to the 2017 Remodeling Impact Report by the National Association of Realtors. And wood-look tile is popular these days. However, the costs of hardwood flooring versus tile can vary by where you live, so you’ll want to compare the two before making a final decision.

DIY tile installation

For do-it-yourselfers looking to reduce costs, attempting tile installation may not be the way to go because of the expertise and equipment required, as well as proper floor prep.

» MORE: When is it best to hire a home improvement pro?

“The biggest issue is when people install tile on top of any sort of wood. When you do that, the hardwood (or plywood) expands and contracts naturally through the moisture — the humidity and temperature — and so the wood expands but the tile does not. The tile is brittle and tends to crack,” Gartner says.

However, tile backsplashes are a possible DIY project, mainly because they’re going on a wall and not taking the constant stress from foot traffic that floor tiles do. Surface preparation is less of a factor, too.

And many backsplash tiles these days come inside a mesh backing, perfectly spaced for easy installation.

The article How to Square Tile Installation Costs With Your Budget originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Your ability to own a home is affected by where you live. Even people with modest incomes can afford homes in Decatur, Illinois, the metropolitan area with the nation’s most affordable houses. At the other end of the affordability spectrum is the San Jose, California, metro area, where high incomes are outmatched by stratospheric home prices.

A home is most affordable when it doesn’t cost much more than a year’s pay. Decatur is an affordable market because the median house costs about one and a half times the median annual income. (“Median” is the midpoint, where half of the values or incomes are lower and half are higher.) In comparison, there’s San Jose, where a typical household earns a six-figure income but a median single-family house costs about 12 times what a typical household earns.

Every quarter, NerdWallet calculates home affordability for 172 metropolitan areas by comparing the median annual household income and the monthly principal-and-interest payment for a median-priced single-family home. After accounting for a 20% down payment, the house payments were calculated at an interest rate of 4.45%, the average rate for a 30-year fixed-rate mortgage in the first quarter; payments don’t include insurance, property taxes or homeowner association dues.

The comparisons revealed the five most- and least-affordable markets for buying a home in the first quarter of 2018. The rankings were compiled using data from the National Association of Realtors, the Census Bureau and NerdWallet surveys.

» MORE: How much can you afford in your area?

Most-affordable metro areas

1. Decatur, Illinois

Median home price: $73,000

Median household income: $46,198

Principal and interest payment: $294 (equals 7.6% of median monthly income)

The affordability of homes in Decatur is bolstered by the fact that homes don’t sell quickly. In March, single-family homes for sale in Decatur had been on the market for a median of 119.5 days, according to Realtor.com. The national median for all home sales was 63 days. A longer time on market in Decatur means buyers aren’t competing as much for homes, and they may have an edge in negotiations with sellers. This makes it easier to take advantage of the affordability. In March, prices in Decatur were reduced on 110 listings and increased on two listings. The median home price fell 15.2% from the first quarter of 2017 to the first quarter of 2018.

2. Cumberland, Maryland-West Virginia

Median home price: $86,200

Median household income: $45,808

Principal and interest payment: $347 (9.1% of monthly income)

Listed homes in Cumberland had been on the market a median of 136.75 days in March — more than twice as long as the national median. Despite the slow sales pace, home prices rose 5.4% from the first quarter of 2017 to the first quarter of 2018. In March, price decreases outnumbered price increases 72 to 2, which is good for buyers.

3. Elmira, New York

Median home price: $100,800

Median household income: $51,269

Principal and interest payment: $406 (9.5% of monthly income)

Homes in Elmira had been on the market for a median of 97.5 days in March, according to Realtor.com, just over a month longer than the national median. The median home price rose 12% year over year in the first quarter. In March, 76 home listings had price cuts and no listings had a price increase.

4. Binghamton, New York

Median home price: $103,000

Median household income: $51,360

Principal and interest payment: $415 (9.7% of monthly income)

Homes for sale in Binghamton had been listed a median of 108.5 days in March, a month when price decreases of listings outnumbered price increases 134 to 2. Yet prices increased 12.9% year over year, the fastest price appreciation among the five most-affordable metros.

5. Peoria, Illinois

Median home price: $114,800

Median household income: $57,090

Principal and interest payment: $463 (9.7% of monthly income)

Peoria had the highest house prices among the five most-affordable metro areas. Prices were balanced out by median household income, which also was the highest among the five most affordable. It was the quickest-selling market among the five most affordable, with homes listed a median of 77.25 days in March. Prices rose the least of the most-affordable at 2% year over year. Price decreases on listings outnumbered price increases in March, 600 to 10.

Least-affordable metro areas

1. San Jose-Sunnyvale-Santa Clara, California

Median home price: $1.37 million

Median household income: $110,040

Principal and interest payment: $5,533 (60.3% of median monthly income)

Buyers have to act fast in the San Jose area, the center of Silicon Valley: For-sale homes spent a median 17 days on the market in March, according to Realtor.com. Price cuts on listings outnumbered price increases in March, 116 to 30. The median home price rose a whopping 28.3% from the first quarter of 2017 to the first quarter of 2018. It was the metro area with the greatest home-price appreciation in the nation.

2. Honolulu, Hawaii

Median home price: $775,500

Median household income: $80,513

Principal and interest payment: $3,125 (46.6% of monthly income)

Honolulu, a popular market for international buyers, spent a median 52 days on the market in March, according to Realtor.com. The median home price went up 4% year over year. Price cuts outnumbered price increases in listings 474 to 20 in March.

3. San Francisco-Oakland-Hayward, California

Median home price: $917,000

Median household income: $96,677

Principal and interest payment: $3,695 (45.9% of monthly income)

Just to the north of Silicon Valley, homes here sell almost as fast. In the San Francisco, Oakland and Hayward area, homes spent a median of just 22 days on the market in March, according to Realtor.com. The median home price went up 12.5% from the first quarter of 2017 to the first quarter of 2018. Price decreases on home listings outnumbered price increases in March, 474 to 114.

4. San Diego-Carlsbad, California

Median home price: $610,000

Median household income: $70,824

Principal and interest payment: $2,458 (41.6% of monthly income)

Do you see a pattern here? California has four of the five least-affordable metro areas. San Diego homes were listed a median 32.5 days in March, according to Realtor.com. The median home price rose 8.2% in the 12 months ending in March. Among homes listed for sale in March, price cuts outnumbered price increases 1,616 to 152.

5. Los Angeles-Long Beach, California

Median home price: $545,500

Median household income: $65,950

Principal and interest payment: $2,198 (40% of monthly income)

Although homes in Southern California aren’t selling as quickly as in Northern California, they’re still going quickly. For-sale homes in the Los Angeles area had been on the market a median of 33.5 days in March, according to Realtor.com. The median home price rose 12.3% from the first quarter of 2017 to the first quarter of 2018, and price cuts outnumbered price increases in March, 3,694 to 528.

These rankings were compiled using data from:

• The National Association of Realtors’ median metro home prices for the first quarter of 2018.
• The Census Bureau’s median household income from the 2016 American Community Survey 1-year series (the latest available data).
• NerdWallet’s daily mortgage rate survey.
• Realtor.com’s market trends data from March.

A version of this story was originally published by The Associated Press.

The article Home Affordability Watch, Q1: California Buyers, Keep Dreamin’ originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

You’ve got the walls painted the perfect shade and the lighting is to your liking. Now you need the right floor to tie the room together. If you want a new hardwood floor, tread prudently: You have a forest of options at a wide range of prices.

It costs an average of $2,400 to $4,000 to buy and install 200 square feet of hardwood floor, according to a Fixr.com national survey. That’s a wide range of $12 to $20 a square foot. How much you spend depends on:

• The species of wood.
• The grade and cut, which describe qualities such as color variation, whether knots are visible and the direction of the grain.
• Whether the wood is solid or engineered (multiple layers of wood veneers).
• The amount of preparation and cleanup work the contractor must do.

Here are tips for shopping for hardwood floors, comparing offers from contractors and controlling the costs of materials and labor.

» MORE: See costs of other home improvement projects

How much does it cost to install hardwood floors?

When a hardwood floor contractor prepares an estimate, the costs are usually divided between materials and labor. There might be another section of the estimate that itemizes other costs.

Material costs: This is where you find the most variation. “That’s the one place where the customer can add or subtract from the bottom line,” says Brett Miller, vice president of education and certification for the National Wood Flooring Association.

The cost of flooring is calculated by the square foot. The contractor usually adds between 5% and 12% to the square footage as a “cut allowance” or “waste factor” to account for scraps that will be left over. For example, a 100-square-foot room might require the purchase of 105 to 112 square feet of flooring because the planks will have to be cut to size. The leftover material is the cut allowance.

Less-expensive species of solid hardwood, such as oak and American cherry, cost $5 to $10 a square foot, according to HomeAdvisor, a referral service for home improvement professionals. Pricier species, such as Brazilian walnut and mahogany, cost $8 to $14 a square foot.

Engineered wood varies widely in price, depending on the thickness of the top veneer and how many layers of plywood are under it. Low-end engineered hardwood runs $3 to $5 a square foot, midrange costs $5 to $10 a square foot, and high-end costs $8 to $13 a square foot, according to HomeAdvisor.

Baseboards are charged by the foot, and the contractor will charge for vapor barriers and fasteners such as nails, staples or glue.

» MORE: Paying for improvements by tapping home equity

Labor costs: Contractors customarily charge labor by the square foot, just as they charge for the flooring. Expect to pay $4 to $8 a square foot for labor to install a solid hardwood floor and $3 to $10 a square foot to install engineered wood, according to HomeAdvisor. Labor costs are higher for floors with vents and irregular shapes.

Other costs: Some costs might be unknown until the contractor starts the work. “There’s a lot of things, sight unseen, that they’re giving an estimate for,” Miller says. So an estimate typically includes a disclaimer saying there could be additional costs “once we tear out your carpet or remove the baseboards or do a little bit more investigation.”

This is particularly the case with the subfloor — the surface under the flooring — which might not be flat enough or might be hiding moisture, the source of which has to be dealt with.

Miscellaneous costs also include fees for removing and disposing of the old flooring, if that needs to be done.

Hardwood floors’ return on investment: Homeowners who install hardwood floors get most of their money back if they sell the home within a year. Sellers recover 91% of the project’s cost, according to the 2017 Remodeling Impact Report jointly issued by the National Association of Realtors and the National Association of the Remodeling Industry.

According to the report, the main reason for installing hardwood was to upgrade a worn-out floor. The next most popular reason was to modernize the home.

» MORE: Best lenders for a home equity line of credit

How do you compare estimates?

You don’t compare the prices of apples to tomatoes at the supermarket. Similarly, you don’t want to compare maple with hickory when getting estimates for hardwood flooring.

Because wood floors come in so many species, grades and widths, along with solid and engineered variations, it’s important to make sure that you get competing estimates for similar materials. That way you’re comparing the prices of apples to apples (or maple to maple).

On the labor side of the estimate, Miller suggests paying attention to the level of specificity described in the preparation and cleaning. He cites a hypothetical example of two contractors: one who “goes into a little bit more detail about the job site preparation and the environmental conditions surrounding that floor and the moisture tests that are required,” and one who doesn’t. Miller might favor the contractor who shares details; you might ask the less-specific contractor for more information.

» MORE: Remodeling? Build in these crucial insurance steps

How to hold down hardwood flooring costs

There are many choices available for the types of wood flooring you buy and the labor involved. Being aware of the differences within each category allows you to select less-expensive options that work for you.

1. Refinish instead of replace

You may be able to refinish a worn-looking hardwood floor. This least-expensive option works best if you know you’ll like the look of your current floor after it has been sanded and a fresh coat or two of finish has been applied. Solid hardwood can be refinished multiple times; engineered wood can be refinished fewer times.

2. Shop species

Most homeowners start shopping with appearance in mind: What color and shade would look best? Lovers of light-colored floors (think of most basketball courts) might prefer woods such as ash or maple. Fans of medium-shade floors might favor hickory or oak. Aficionados of dark-colored floors (think of the paneling in men’s clubs in old movies) might choose mahogany or walnut. Each species will have its own price range, with oak and hickory often at the lower end and mahogany at the higher end.

3. Consider grain

The appearance of the wood’s grain, which comes from the way the wood is cut at the sawmill, affects price. Do you want the grain to run across the board, in wavelike patterns? That is a “plain-sawn” cut and is the least expensive.

Do you want the grain to run in lines down the length of the boards? Then you want a “quarter-sawn” or “rift-sawn” cut, which are more expensive than plain-sawn.

4. Choose the grade

Wood floors are graded by their physical characteristics. Planks are graded “clear” if they have uniform color and lack knots and wormholes. A “select” grade goes to the natural look: wood with color variations, knots and mineral streaks. A “No. 1 common” grade has even more color variations and knots, and may even have wormholes. “No. 2 common” is a more rustic version of No. 1 common.

Generally speaking, wood graded clear is more expensive per square foot than select, and select is more expensive than common grades. You may find exceptions, especially during sales.

5. Choose solid or engineered

Once you’ve chosen the look you want, it’s time to decide between solid wood and engineered hardwood. Solid wood is what it sounds like — the board or plank is cut straight from the tree. Engineered wood consists of a veneer of hardwood atop several layers of plywood, and is resistant to moisture damage. If you insist on a hardwood floor below ground, such as in a basement, it will have to be engineered.

There are varying qualities of solid wood and engineered wood, and it’s impossible to make a blanket statement that one type costs more than the other.

6. Remove and dispose of the old flooring

The contractor will charge you to rip out the old flooring and dispose of it properly. So if you can do this part of the project yourself, you can save money.

7. Install the floor yourself

For most homeowners, installing hardwood floors is not a do-it-yourself project. Laying a wood floor requires expertise beyond just nailing or gluing boards onto a subfloor.

For one thing, an installer has to know whether nailing or gluing (or floating) is the proper method for that particular floor. In addition, an installer has to understand how to make allowances for variations in temperature and humidity, know whether to use a vapor barrier and which type, figure out how to accommodate features such as fireplaces and closets, and be willing to tackle other issues.

However, YouTube is filled with tutorials for installing hardwood floors, and home improvement stores sometimes offer lessons. If you have strong do-it-yourself skills, lots of patience, ample tools and the humility to smile through mistakes, you can try installing the floor yourself.

The article 7 Steps to Save on Hardwood Flooring Costs originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Homebuying will remain competitive from July through September, with the edge going to buyers who act fast. And as mortgage rates rise, some homeowners will feel compelled to tap their equity rather than refinance or sell. Here are three housing and mortgage trends to watch for as summer 2018 slides into fall:

• Home sales will slacken in the third quarter, creating an opening for assertive home buyers.
• After rising through the first half of the year, mortgage rates could keep pushing upward — or plateau.
• The rise in mortgage rates will keep some homes off the market, fueling demand for home equity lines of credit.

Home buyers should seize opportunity

In a typical year, home sales peak in June and then decline in the third quarter. But plenty of homes remain on the market from July through September. Competition among buyers is about the same and maybe even ratcheted down a little.

If you prioritize homebuying over vacationing this summer, Terri Robinson’s advice is to move fast. Robinson, a real estate agent in Ashburn, Virginia, says the competitive edge goes to buyers who don’t put things off. If a desirable property goes up for sale at the beginning of the week, don’t expect it to still be on the market Saturday.

“Always be ready to dash and go and see it,” Robinson says.

And it helps to know how much home you can afford.

First-timers can educate themselves about state first-time home buyer programs designed for them. On top of specialized state programs, the Federal Housing Administration and the Department of Veterans Affairs offer FHA loans and VA loans, which are popular among first-time home buyers for their flexible terms and competitive rates.

Mortgage rates trend upward

The average rate on the 30-year fixed-rate mortgage climbed more than half a percentage point in the first six months of 2018, finishing June at 4.72%. Few, if any, people in the industry expect mortgage rates to fall, but they’re split about whether rates will keep rising or stay where they are.

The Mortgage Bankers Association and the National Association of Realtors both expect mortgage rates to rise about two-tenths of a percentage point more by the end of September, as job creation remains strong and the Federal Reserve raises short-term rates.

Not everyone is convinced that mortgage rates will keep going up. Fannie Mae, the government-sponsored enterprise that buys mortgages from lenders, expects rates to remain near the current level for the rest of 2018.

Michael Moskowitz, president of Equity Now, a mortgage lender in New York City, believes that mortgages will stay about the same because of weakness in European and Chinese economies, which could lead investors there to seek the safety of buying American debt, keeping a lid on interest rates.

Robinson, the agent in Virginia, says her advice to home buyers is “don’t be concerned about rising interest rates, OK? Because at this time, incomes are also climbing too, and interest rates are still historically low.”

Renovators turn to HELOCs

Any would-be buyer or housing economist would tell you there aren’t enough homes for sale. You can point the finger at many causes for the housing shortage, and one of them is rising mortgage rates.

It’s called rate lock-in: Homeowners are reluctant to sell their homes and abandon their sweet mortgage rates.

The reasoning goes like this, says Mark Fleming, chief economist for First American, a title insurance, mortgage settlement services and real estate data company: “I’m sitting on a 3.5%, 30-year fixed-rate mortgage, and if I go and sell my home, I’ll have to get a new mortgage on a new home at 4.5%. Even if I bought a home exactly the same price as the one I just sold, it would cost me more per month to live there. Why move?”

To satisfy the desire to move up to nicer or bigger homes, locked-in homeowners can renovate or build additions.

One popular way to pay for improvements is with a home equity line of credit, or HELOC. It’s a second mortgage that lets you borrow against the home’s equity, which is the difference between the home’s value and the amount owed on the mortgages.

The market “is poised for a strong shift toward HELOC utilization, as they allow borrowers to take advantage of growing equity while holding on to historically low first-lien interest rates,” according to a report by mortgage technology company Black Knight.

Interest rates on HELOCs are variable and go up when the Federal Reserve raises short-term rates. Although the lock-in effect discourages homeowners from refinancing their primary mortgages, the number of new HELOC accounts grew 14% year-over-year in the first quarter of this year, the most recent data available, according to ATTOM Data Solutions.

The article 3 Months, 3 Housing Trends: Fast Buyers, Higher Rates, Tapping Equity originally appeared on NerdWallet.

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