How Home Ownership Affects Children

June 11, 2025

How Home Ownership Affects Children

When families consider buying a home, the focus is typically on the financial benefits and investment potential. But homeownership also plays a meaningful role in the well-being of children. Studies show that children raised in owner-occupied homes experience greater stability, better educational outcomes, and stronger community connections.

Stability and Routine

One of the biggest benefits of homeownership for children is stability. Renting a home can come with frequent moves, school and extracurricular activity changes, and disruptions in routines. When families own their home, they’re more likely to stay in one place longer. This consistency gives children the opportunity to form lasting friendships, develop strong relationships with teachers, and participate in extracurricular activities on a consistent basis.

A stable environment can also help children feel more secure. Knowing they’ll come home to the same place every day provides a sense of comfort and predictability, which can contribute to a child’s emotional development.

Academic Performance

The stability and support that homeownership offers can lead to improved focus and school engagement. With fewer moves, children are less likely to fall behind or experience gaps in their learning. A consistent home environment can also encourage better homework habits and increased communication between parents and schools.

Parents who own their homes are more likely to invest time in their neighborhood schools and take an active role in their child’s education. This can have a direct impact on a child’s overall success in school.

Community and Belonging

Children benefit when their families are connected to neighbors and community organizations. Staying long-term in one area allows families to build relationships and feel a stronger sense of belonging. For children, growing up in a tight-knit community can increase confidence and provide a valuable support network.

Healthy Living Environment

When families own their homes, they have more control over the quality of their living environment. Homeowners can make improvements, maintain safety, and create a space that reflects their family’s individual style and needs. This is especially important for children, whose development is influenced by their surroundings.

A Foundation for the Future

In addition to the immediate benefits, homeownership can shape how children view responsibility and financial planning. Watching their parents pay a mortgage and care for a home can instill important life lessons about independence and long-term planning. For many children, this exposure becomes a foundation for their own future financial decisions.

Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.

What is the Difference Between a Buyer’s Agent and a Seller’s Agent?

January 27, 2025

What is the Difference Between a Buyer’s Agent and a Seller’s Agent?

Navigating the real estate world can feel overwhelming, especially if you’re new to buying or selling a home. It’s important to understand the roles of the professionals that help you throughout the process. While most people understand the roles of a mortgage broker or loan officer, it can be a little harder to discern the difference between the buyer’s and seller’s agents. Both are licensed real estate professionals but their roles and responsibilities differ depending on who they represent.

Choosing An Agent

Whether you’re buying or selling a home, it’s important to work with an agent you can trust. The agent you choose should have plenty of experience and understand your local market. It’s also important to find an agent that’s easy to communicate with. Agent’s play a crucial role in making transactions smooth and successful. A good agent will make sure their client is well represented throughout the process.

Buyer’s Agent

The goal of the buyer’s agent is to advocate for the homebuyer’s best interests throughout the buying process. Before hiring a buyer’s agent, you will be asked to sign a Buyer Agent Compensation Agreement or BRBC form, which is required by the California Association of Realtors. This agreement essentially “hires” the agent for an agreed upon fee to help them find and purchase a home. Once hired, the buyer’s agent curates a list of properties based on the homebuyer’s preferences including budget, location, and space requirements. Once the homebuyer decides on a property, the buyer’s agent prepares the offer with the terms specified by the buyer. They help negotiate with the seller or seller’s agent to get the best price and terms possible for the homebuyer.

The buyer’s agent assists with all parts of the buying process from negotiating with the seller’s agent to ensuring the buyer accurately completes and understands all paperwork.

Seller’s Agent

A seller’s agent, sometimes called a listing agent, helps the seller market their property, attract buyers, and secure the best terms of sale. The seller’s agent helps a seller determine the best asking price by providing a Comparative Market Analysis of the local area’s recent sales. Pricing a home correctly is vital to attract local buyers while maximizing profit for the seller. The seller’s agent assists with marketing the property and provides advice on staging and best practices for online listings and open houses. They make sure the property gets as much exposure as possible.

The seller’s agent helps screen potential buyers to ensure they are financially capable of purchasing the property. They negotiate terms with the buyer’s agent, and oversee the paperwork and deadlines to ensure a smooth closing process.

Is It Possible for One Agent To Do Both?

While it is possible for one agent to act as both the buyer’s and seller’s agent, this isn’t always beneficial for all parties. A dual agent must remain neutral, making it difficult to properly advocate on either party’s behalf. This can lead to less than favorable results for both the buyer and the seller.

Referring Agent

In a new home purchase, a buyer’s agent will act as a referring agent. They will help buyers to locate properties that may work with their budget and their desired wish list, some resale and possibly new homes. When a buyer purchases a new home, the agent that helped them find it may receive a referral fee to offset from the builder/seller that is credited toward the agreed compensation signed within the Buyer Agent Compensation Agreement or BRBC.

A referring agent is not a party to the sales transaction, nor do they have any requirements tied to Real Estate Agency. The new home sales representative plays that role in the purchase transaction. This is due to the specialized forms and disclosures that come with a new home rather than a used, resale home.

Mortgage Rates Reach Lowest Level in Over a Year, Offering New Opportunities for Homebuyers

August 21, 2024

Mortgage Rates Reach Lowest Level in Over a Year, Offering New Opportunities for Homebuyers

In August 2024, mortgage rates hit their lowest level in over a year. According to Freddie Mac, the current rate for a 30-year fixed mortgage has had a significant drop from nearly 8% last year. This decline presents a promising opportunity for potential homebuyers and sellers.

Falling Mortgage Rates Boost Affordability and Market Activity

Currently, the 30-year fixed-rate mortgage hovers around 6.5 percent, with rates expected to continue to decline in coming months as inflation decelerates and we enter into the election. For buyers, reduced mortgage rates could mean lower monthly payments and increased purchasing power, making owning a home more attainable. Some Sellers are offering 2/1 temporary interest rate buydowns, which drop the start rate to 4.5% the first year, which provides amazing savings for homebuyers. Sellers could benefit from heightened market activity as lower rates attract more buyers, leading to quicker sales and competitive offers.

Recent data highlights a resurgence of interest in the housing market, particularly in Los Angeles and Orange County. Over the past few weeks, there has been a noticeable increase in foot traffic at weekend new home sales offices and open houses. Lenders are also seeing a rise in clients reconnecting to explore financing options.

HPSI Data Confirms Increased Consumer Confidence in Real Estate

The latest data from the Fannie Mae Home Purchase Sentiment Index (HPSI) reveals a positive shift in consumer confidence within the real estate market. In June 2024, the HPSI rose by 3.2 points, reaching a score of 72.6. This increase represents a modest but notable resurgence of optimism among consumers about both buying and selling homes. 19% of respondents now view the current market as a favorable time to purchase a house, while a substantial 66% believe it is an advantageous time to sell.

Sales Surge and Inventory Expansion

The MLS reported a 3.9% increase in the number of homes sold from June to July 2024. This rise in sales activity, combined with a 10.5% increase in inventory, suggests a more dynamic market environment. Despite these positive trends, the average days on market has extended to around 40 days, indicating that while buyers are active, the process of securing a home may still involve a longer timeline.

For prospective homebuyers, the current mortgage rate presents a compelling incentive to act. With rates at their lowest in over a year, buyers can secure more favorable financing terms and make their home purchase more affordable. Additionally, the increase in inventory offers a broader selection of properties to choose from, further enhancing opportunities in the market.

As the real estate landscape continues to evolve, staying informed about these developments can help buyers make strategic decisions. The combination of lower mortgage rates and increased market activity may set the stage for a rewarding homebuying experience in the months ahead.

Will Home Prices Go Down?

September 14, 2022

Will Home Prices Go Down?

Analysts, home shoppers, renters, homeowners are all wondering whether home prices will reduce at the same margin that costs to build go up. There are conflicting answers however. Looking closely at housing demand we see the need increasing, not decreasing. With rent, land and the cost of construction going up, it’s hard to say “no” to owning a home today. When asked if rent will increase over the next 7 years, you will have a hard time finding someone that would say “the cost to rent will be lower”.

In seven years, home prices will not be lower from today. It’s unlikely anyone believes they will. The price adjustments occurring now will be small and mainly for homes that had unrealistic prices to start with… let’s face it, it should never cost $800,000 to live in Boise!

Instead of waiting for home prices to go down, prospective buyers are weighing the pros and cons and taking action now. Many sellers are offering attractive financing packages to create a more affordable payment. The rule is: If you can afford the payment on a 7-to-10-year fixed loan, fix your payment now and take advantage of the tax deductions that you won’t get with renting. Statistically, most homeowners move every 13 years according to the National Association of Realtors.

Take a look at the recent data from the Mortgage Bankers Association (MBA), which proves all of the above to be correct.

Tax Breaks for Homebuyers

High demand for rentals continues to drive rent prices up with zero deduction to the tenant, while building wealth for the property owner. It is no secret that one of the cornerstones of building wealth is investing in real estate. Anyone looking for tax breaks should consider buying a home instead of renting.

Homeowners can take advantage of several tax deductions including:

Mortgage Interest Deduction
Homeowners can deduct interest paid on a loan related to building, purchasing, or improving their primary home up to $750,000.
Mortgage Points Deduction
Homebuyers pay “points” to their lender when they take out a mortgage. These points are a form of prepaid interest paid up-front in exchange for a lower interest rate. In most instances, mortgage points are fully deductible the year they’re paid.
State and Local Taxes (SALT) Deduction
The SALT deduction allows property owners to deduct payments made for property taxes and income or sales tax payments up to $10,000.

Housing Affordability

For renters, the choice to buy often comes down to affordability. Average rent for a vacant unit in Orange County jumped to $2,570 per month in 2022, up 18.5% from the spring of 2021. Most Southern California renters are already paying more than they would for a 30-year mortgage. This makes a 7-to-10-year fixed mortgage a feasible option for many renters.

Impact of Solar Energy On New & Used Homes

February 15, 2021

Impact of Solar Energy On New & Used Homes

As Americans are making environmental efforts, alternative forms of renewable energy are becoming more popular. We see this every day with the rise of electric cars on the road. For homeowners looking to reduce their carbon footprint, solar energy provides many benefits. The right solar panel system can fulfill the electricity needs of an entire household while creating around 80% fewer carbon emissions than fossil fuels.

Installing solar panels does much more than reduce energy bills. Unlike fossil fuels, solar energy is a renewable source which require very little maintenance and have no moving parts. Homeowners only need to clean the panels a couple of times each year and replace the inverter every 5-10 years.

Solar energy may soon replace traditional energy systems in several applications. Scientists continue to improve solar power technology to meet the needs of consumers and businesses. It’s expected that solar panels will be even more efficient in the future.

California Solar Mandate

The California Solar Mandate, which went into effect on January 1, 2020, requires new construction multi-family and single-family homes up to three-stories high to have a solar photovalic (PV) system as an electricity source. In order to comply with the mandate, the solar panel system must be large enough to meet the estimated annual electricity needs of the building.

Mortgage Considerations

While most homeowners understand the benefits of installing solar panels, there are a few things to consider before making this purchase. When homeowners purchase solar panels with anything other the cash, the manufacturer can place a Lien or Uniform Commercial Code filing on the property. Designed to create monthly payments, these liens may make it difficult to refinance or sell the property. Fortunately, many solar panel companies will uninstall the system prior to sale. Another factor is the monthly interest cost for leasing the system verses owning the system, which homeowners should consider. That’s why in many cases homeowners will use an equity line or cash reserves to outright buy the system.

Solar Panel Installation – New Home vs. Used Home

When it comes to solar panel installation, the age of the roof makes a big difference. Roofs generally last between 20 and 30 years. Solar systems last at least 25-30 years. Used homes with older roofs may require analysis by a structural engineer. This isn’t a problem when installing solar panels on a newer home.

While new homes will now require solar, buying a used home with solar panels provides benefits as well. Purchasing a used home with a fully owned system provides the greatest benefits. Because the prior owner purchased the solar panels up front, the homeowner avoids problems caused by an existing lease or finance contracts.