As I write this article, my wife and I are on our 50th anniversary trip to Kauai. We're just leaving San Francisco, and the five-hour flight to Hawaii should give me enough time to share some thoughts about real estate and the current market.

I certainly don't know the future, but I do know the One who does. My years are many, and my experiences have been both rewarding and challenging.

Interest Rates Seem to Be Stuck

If you're one of those who have been blessed with a low interest rate around 3% or have already paid off your mortgage — you're feeling great, right?

National statistics indicate that about 40% of homeowners have paid their mortgages in full. While 30-year mortgages are still pushing 7%, many people have decided to pause their home-buying plans, waiting to see if rates will drop to a more comfortable monthly payment before venturing into the current market.

Ask yourself this important question: What are we trying to accomplish?

Be realistic about your plans and think through the path you must travel. Most people have worked hard to get to where they are. Enjoying the comforts you have and simplifying your life is a noble cause. Taking inventory of your assets and protecting them as you age can be a full-time job.

Spend Your Discretionary Money Wisely

Many people have asked me about buying solar panels, updating older windows, kitchens, bathrooms, etc. While these improvements can be helpful, many find the long-term effects of their decisions to be detrimental when trying to sell.

After discussing these issues with licensed appraisers, I've learned that added expenses can be costly with very little return. My suggestion to most homeowners? Start with an inspection by a certified inspector who can provide a comprehensive list of issues that need attention. Then prioritize what will protect your investment — not what will impress a future buyer.

Recently, the snowmelt in my neighborhood caused extremely high groundwater levels, filling concrete meter vaults to the top. When the inspector began his inspection, he discovered about six inches of water under the home. He couldn't finish the inspection, and we pumped over 5,000 gallons of groundwater out from underneath the house. Fortunately, it didn't appear to cause any damage, but the buyer insisted that a sump pump be installed before closing. Everything went as planned, and escrow was completed on time.

Protect Your Investment

Look at your home as a safe place to live, providing security and allowing you to build equity for the future. Take pride in what you have, and it will serve you well.

When we moved to Klamath Falls in 1986, we could buy a typical three-bedroom, two-bathroom home for about $40,000. We didn't buy a home until 1998, and it cost us $113,000 in rent. Today, our house is worth about $350,000 according to Zillow estimates. Looking back, we should have purchased when we arrived instead of waiting; we lost 12 years of rent that could have gone toward building our assets.

Inflation Won't Stop

History proves that inflation will continue and won't reverse. While markets adjust for overbuilding and excessive inventory, we don't seem to have that situation here in Klamath Falls. If a home is well-maintained and priced appropriately, it should not stay on the market long.

Maintaining your home is wise and prepares it for potential buyers. Always ask yourself as a seller: If I were buying this house, would I want these things repaired?

Home Warranty Assurance

I personally purchase a First American Home Warranty for each buyer, and when listing your home, I buy one for the seller. It covers many major repairs while we market your home for sale — peace of mind for both sides of the transaction, and one less thing to worry about during a process that already has enough moving parts.

Tony Nunes · Broker · Coldwell Banker · 3815 S. 6th St., Suite 110 · Klamath Falls, OR
(541) 840-0342 · klamathfallsrealtor.com
"Sell or Buy, I'm your Guy"