No Noise, No New Construction: Why Savvy Homebuyers Are Embracing Graveyard Views

Homebuyers in competitive markets are sometimes advised to write an escalation clause into their offers. The terms may vary, but in essence, the buyer agrees to beat any offer above theirs by a certain amount, often up to a certain limit. This can, for example, turn a $500,000 offer into a $515,000 offer, if another buyer offers $510,000. In theory, this strategy is useful if you want to remain in contention for a home without pushing all your chips in at the start of negotiations . But despite some protections, there are still potential downsides to telling a seller that you have more to spend than what you’re first offering. Plus, some experts say there are ways to make a compelling, winning offer for a home besides offering the most money. The case for escalation An escalation clause allows a prospective buyer—with a clear head, rather than in the middle of a bidding war—to both make it known that they’re willing to go higher with their offer, as well as set a ceiling if they so choose. “Escalation clauses can be a great tool to use when executed properly,” says Veronica Peter , a real estate agent with Compass in the San Francisco Bay Area. “It is particularly advantageous when you are competing for a property that you are confident will receive a high volume of offers and the market is hard to gauge accurately for that specific property.” Peter has seen this exact situation play out—not for a client, but for herself personally. “I used an escalation clause when I was buying a home in a hot market and the property was severely underpriced. I knew there would be an overwhelming number of offers and that the seller was likely to counter the top offers. The property ultimately received 42 offers,” she says. “Including an escalation clause is what moved my offer from the middle of the pack to the top five. ... If I had written my opening offer without an escalation clause my offer wouldn’t have been considered and my dream home would belong to someone else.” In a vacuum, the case for an escalation clause is clear. If you have a little budget to play with, you’d hate to make an offer on a home and then lose out over a few thousand dollars—which is not a small amount of money, but could feel that way spread out over a 30-year loan. Does an escalation show strength or weakness? There are two sides to the same coin that is an escalation clause. One side shows strength: You have the means to go further to secure the home, if necessary. The other side is weakness: You are making an initial offer that you know can be beaten. “You're giving away your ceiling before the negotiation even starts,” says Olivia Casa Monday , a real estate agent with Berkshire Hathaway in Colorado. “I recently had a listing with four offers where one buyer came in below asking but escalated up to $200,000 over asking, in $5,000 increments above the next-best offer. The seller felt that the buyer wasn't fully committed to the home, so we negotiated with the parties who were ready to put their strongest number down without conditions.” Escalation clauses don’t need to go hundreds of thousands over the original offer, and buyers aren’t expected to spend every available dollar on a home regardless of its value. But making it plain that you could go higher, or even markedly higher, may demonstrate a lack of conviction in your own offer. “Too often it signals that the buyer won't risk putting a strong offer forward on their own, especially when the increment is only $1,000 to $2,000 over the next offer,” says Monday. Trying to avoid a bidding war could cost you in the long run. (Getty Images) Sellers could take advantage Sometimes, the downside of an escalation clause isn’t simply losing out to another offer without conditions, but having the clause actively work against you. “It's common practice for a listing agent who receives offers to ‘shop’ them to drive up competition,” says Jon Weintraub , a licensed real estate agent in Virginia and Maryland who avoids escalation clauses whenever he can. Though ethics rules allow agents to disclose only that other offers exist, they can use vague terms to nudge other offers higher. “An escalation clause hands them the ammunition to do exactly that, because now they know how high you'll actually go.” In softer markets, where multiple offers are less common, the seller and their agent may just counter your offer at the top of your escalation ceiling. “A seller could counteroffer at the buyer's cap price, refuse to produce documentation regarding another offer, or accept the higher price and then proceed to negotiate other aspects of the agreement, such as the buyer's broker commission, credits, or repairs,” says Melanie Zimmerman , owner and real estate agent at MVP Chicago Real Estate. “While an escalation clause establishes one price component, it does not establish all other components of the sale." Making a strong offer with or without escalation If your agent does advise an escalation clause, there are a few important details to keep in mind to ensure your offer doesn’t put you in a tough position. “I would suggest setting a cap at a price that you would be comfortable paying regardless of whether you are bidding alone or with others. I would also ask for proof of a competing offer prior to increasing my purchase price,” says Zimmerman. The first tip prevents you from overcommitting—especially when the market is soft—and the second one helps prevent sellers from using your offer against you. “The better way to stay competitive is to win on terms, not necessarily price. Price is only one piece of an offer,” says Weintraub. “A clean offer with limited or waived contingencies can beat a higher number that comes with strings attached. We offer your strongest clean number at or below that, no escalation, and we make the rest of the offer as easy for the seller to say yes to as possible.” It can be tempting to add an escalation clause to an offer, especially if it’s a home you don’t want to lose out on. Just be sure your escalation is one you’ll want to live with—because, after all, that’s exactly what you’ll be doing once you close on the home. #AdamsCameron #Since1963

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Financial anxiety, shame, and information overload can discourage Gen Z from buying a home, even if they can afford to do so. In a recent report by FirstHomeIQ and National MI featuring 1,000 Gen Z and millennial consumers, 63% said they felt overwhelmed by homebuying information, 42% had put off speaking to a housing professional, and 37% avoided thinking about buying a home altogether. “The findings show what happens when a generation that has done everything it was told to do—save, budget, check your credit—still doesn’t believe it’s enough, still doesn’t trust the process, and is starting to walk away,” Kristin Messerli , executive director at FirstHomeIQ , said in the report. If you’re a current or aspiring Gen Z homebuyer, know that homebuying doesn’t have to feel like a trap. As long as you have a realistic budget, clear understanding of all costs, and a trusted team with your best interests in mind, you can move toward it with confidence. What can trip up Gen Z buyers It’s not uncommon for Gen Z to run into pitfalls as they navigate homeownership—but much of their anxiety could be quelled by finding a real estate professional they trust to guide them through the process. Problem is, while 63% trust that mortgage and housing professionals have the knowledge to give good advice, only 37% believe professionals put the client's best interests first. Furthermore, only 1 in 8 (12%) feel confident they won't be taken advantage of. Roughly 60% harbor explicit fears about being taken advantage of (60%), pressured into bad decisions (58%), or kept in the dark about better options (57%). But here's what a real estate pro can tell them to get them over their fears. Underestimating hidden ownership costs Saving for a down payment is just one part of preparing for homeownership. And 50% of respondents believe they need to save 20%. While the down payment is important, it shouldn’t be the sole focus, especially because you can buy a home for less than 20% and there are many other ownership costs to consider. "Readiness means looking beyond the payment. How stable is your income? How much cash will remain after the down payment and closing costs? How long do you expect to stay? Could you handle a major repair without going into debt?" says Ben Cohen , senior vice president of mortgage lending at Rate in Chicago . Misjudging interest rates Some Gen Zers may compare today’s rates with those their parents secured, making homeownership seem less attainable. In the report, 76% of respondents believe homeownership is harder today than it was for their parents. Gen Z may also have unrealistic expectations about where rates are headed. “Some are anchored to the rate a friend received a year ago and are waiting for a number that is not coming back anytime soon. Others treat today’s rate as temporary,” says Frederick Blum , broker and owner of Blum Realty Group in San Diego . Ultimately, trying to time the market can become a serious barrier to ownership. “You can spend years guessing when prices or interest rates will hit their lowest point. But in the meantime, you may be missing opportunities that are right in front of you,” says Corey Wayne , licensed real estate salesperson at High Line 2 Hamptons in New York City . Rushing into buying FOMO, fear of missing out, among Gen Z is very real. Many of them see pictures of friends in new homes all over social media and may feel like they have to go ahead and follow in their footsteps now. That’s why it’s not too surprising that 58% of respondents fear pressure to make decisions they don't understand. How to set yourself up for homeownership success If you’re a Gen Zer thinking about buying a home, these expert tips will help you evaluate your financial readiness and make smart decisions that align with your lifestyle and goals. Perform the readiness test Blum recommends you look past your pre-approval amount and calculate what you can comfortably afford. Start with your monthly take-home pay—not gross. Subtract the full monthly cost of a specific home you’re considering. This should include the principal, interest, taxes, insurance, mortgage insurance, HOA dues, and a maintenance reserve (1% to 2% of the home’s price). Next, account for your expenses—your debt payments, groceries, utilities, savings, and discretionary expenses. What is left is your margin, and that margin can decide whether this home is security or a trap. “If a $2,000 repair in Month 3 would have to go on a credit card because there is nothing left in reserve, the house is too much, no matter what the lender approved,” explains Blum. Buying a home should leave you with enough left over to handle unexpected expenses and maintain the lifestyle you desire. Find a homebuying team you trust Distrust can create a real barrier to homeownership, and the report found that it’s definitely an issue for Gen Zers—only 12% aren’t worried about being taken advantage of. That’s why it’s important to shop around for a real estate agent and mortgage professional whom you trust. “That right guidance can make all the difference. My role isn't simply to help someone find a home. It's to help them understand the market, recognize value, negotiate strategically, and make informed decisions they'll feel good about long after closing,” says Wayne. Read reviews, ask your network for their recommendations, and interview a few professionals so you can make the most informed decision for your unique situation. The individuals you choose should answer your questions in a way you understand, explain unfamiliar terms clearly, and simply give you a good gut feeling. Be flexible In many cases, buying a home you can afford means thinking outside the box. And according to the report, many Gen Zers are doing just that: 43% would choose a smaller home or fixer-upper, 42% would move to a lower-cost area, and 35% would take advantage of down payment assistance programs. Wayne is seeing this type of flexibility firsthand with his Gen Z clients. “I've worked with buyers who are willing to give up a doorman or expand their neighborhood search to get better value for their money. Others are becoming more open to homes that need light renovations, especially in kitchens and bathrooms, where cosmetic updates can create an opportunity to purchase at a more attractive price,” Wayne explains. Don’t rush If you find that you’re not financially or emotionally ready to buy a home, that’s OK. The current economic challenges of homeownership are real, and if you can’t make the math work, delaying homeownership until you boost your savings, get a promotion, and/or pay down debt can ultimately put you in a stronger financial position. “Buying your first home is a major life milestone, and it's important to feel confident in that decision,” adds Wayne. #AdamsCameron #Since1963

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Ah, fall: The nip of the first chill in the air. The colorful foliage. The pumpkin spice lattes. The pumpkin spice everything . Oh yeah, and the long list of home maintenance tasks awaiting you at the start of the season. We hate to intrude on your fall bliss, but the postsummer months are a critical time for knocking out routine home maintenance to keep your household running smoothly into winter. Luckily, many of these tasks are easy DIY projects , with options to call in the pros if you prefer. We asked home experts which items should be at the top of your to-do list this fall. Here are the musts to tackle before the falling leaves turn to ice and snow . 1. Check windows and doors for air leaks Lower temperatures mean higher thermostat settings, and anyone in a cold climate knows the pain of opening a gas bill in the dead of winter. To keep cold air out and utility bills in check, Mike Bidwell , president and CEO of Neighborly , suggests checking all of your windows and doors for air leaks. DIY: If your issues are minor, a few low-budget options to fix leaky doors and windows include caulking around gaps, adding or updating the weatherstripping, and using foam sealant . Call in the pros: If you have major gaps or just want peace of mind that leaks are sealed properly, call an expert. “Depending on the size of the leak and the number of leaks identified, the cost will vary from a minimum-charge service call to something more if more extensive work is called for,” Bidwell says. Your chimney is about to be very busy. (Getty Images) 2. Clean the chimney If you have a fireplace, fall is a great time to give it a thorough cleaning and inspection, says Craig Gjelsten , vice president of Rainbow International Restoration . Maintaining a clean fireplace is the simplest and best way to remove creosote, a byproduct of wood combustion that contains tar and toxins. “Eliminating this from the chimney liner and the smoke box reduces the risk of a fire,” he says. DIY: If you’ve been keeping up with cleaning your chimney on a yearly basis, you can handle this task on your own, “as long as [you] feel capable of using an extension ladder to get to the roof and scrub the chimney,” Gjelsten says. Call in the pros: “ If you haven’t cleaned the chimney in a long time, it is recommended that you call an expert to do a thorough clean,” Gjelsten says. You can expect to spend anywhere from the low $100s to upward of $380 , depending on where you live (and how fouled the chimney has become). Replacing dirty furnace filter in your home will keep your home warmer and safer. (Getty Images) 3. Schedule a furnace tuneup Don’t wait until the first bitterly cold day to finally turn on your furnace. If you have any issues, you’ll want to know before the mercury drops and you find yourself shivering indoors. “Homeowners should listen for strange noises, such as booming, clicking, and squealing, when they turn on their furnace for the fall season,” Bidwell adds. “They should also pay attention to odd odors coming from the furnace.” If you notice anything unusual, call an HVAC professional right away. DIY: Change your filter regularly and often. “Every season, homeowners should replace the furnace filter,” Bidwell says. “They can also vacuum dust and debris from and around the furnace to help it operate like new.” Call in the pros: Even if you change your filter regularly, it’s a good idea to schedule a furnace tuneup, Bidwell says. HVAC pros can inspect and clean the air ducts, check and adjust the pilot light, lubricate the furnace bearings, and inspect and tighten fan belts and pulleys. The beginning and end of daylight saving time is a good reminder for twice-a-year tasks, like changing the batteries in your smoke detectors. (Getty Images) 4. Test smoke and carbon monoxide detectors It’s easy to forget about smoke and carbon monoxide detectors (unless a cooking disaster sets off the alarm—we’ve all been there). “That’s why as we approach this time of year, it’s important to test these alarms and detectors, as well as replace those that are 10 or more years old,” Gjelsten says. DIY: This is a quick and easy project most homeowners can handle on their own. Simply press and hold down the “test” button for a few seconds on each of your detectors. “If working properly, these detectors will emit a loud ping or siren,” Gjelsten says. “Should the sound be weak or not there at all, you should replace the batteries and test the detector once more to ensure it’s working properly.” 5. Run ceiling fans in reverse The hot, humid days of summer are officially in the rear-view mirror (in most parts of the country, at least). “That’s why now is the perfect time to start thinking about reversing the direction [of] fans in the home to make the space warmer,” Gjelsten says. Reversing the direction of your ceiling fans helps circulate warm air near the ceiling back into your living space. (Heat rises, remember!) This can cut your heating costs by as much as 10%, Gjelsten says. DIY: All you need is a ladder or stool for this task—and make sure the fan is off. Then simply flip the switch that is commonly found on the side of the motor to change the fan’s direction. 6. Winterize your sprinkler system It’s a good idea to winterize your outdoor irrigation system to prevent damage from freezing water. This process clears leftover water from the pipes in your irrigation system. DIY: “Due to the need for high pressure to clear water out of the lines, winterizing sprinkler systems is not a typical DIY project,” Bidwell says. But if you’re handy and you have the right equipment—including an air compressor —it’s possible to tackle this project on your own. Call in the pros: In warmer climates, sprinkler winterization service averages between $100 and $150, Bidwell says. In areas where temperatures dip below freezing, the process is more intensive, so you can expect to pay more. 7. Disconnect and empty your garden hoses Speaking of freezing water, “a frozen hose can cause the water inside the wall to freeze and burst,” Bidwell says. Don't let this happen to you, homeowner! DIY: Disconnect your hose and let it drain on an angle. Once the hose is empty, coil it up and pack it away for the season. 8. Clean the gutters Throughout the year, your gutters fill up with leaves, sticks, and other debris. Failing to clear this gunk from your gutters can mean rain and melting snow won't be able to drain easily—potentially causing seepage and leaks into your home. DIY: If you’re comfortable climbing on a ladder to clean your gutters, this is a DIY-friendly task, “Using a bucket, gutter scoop, and heavy-duty gloves, you can remove any debris found in your gutters,” Gjelsten says. Use a hose to wash away any remaining debris and to make sure the downspouts are working properly. Call in the pros: If you’re not keen on climbing, you can call in a professional. #AdamsCameron #Since1963

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If you own an abundance of appliances and tech gadgets , chances are you can't live without power strips and extension cords. They allow you to power multiple electrical devices at once and can be neatly tucked out of sight. But magical as they are, power strips and extension cords can hold only so much. If you overload them, you can run the risk of their overheating or even catching fire . Plugging multiple power strips together, or “daisy chaining,” can overload your electrical system. And extension cords can be used safely only with certain appliances. “It's generally not advisable to use an extension cord with larger appliances like refrigerators, freezers, and washing machines," says Jason Metzger , senior vice president and head of risk management at PURE Insurance. “Some appliances explicitly state not to use their products with any type of extension cord.” To keep your home happy and hazard-free, here are a few high-capacity appliances that should not be used with a power strip or extension cord. Kitchen appliances: Microwave, coffee maker, refrigerator The kitchen has the motherlode of appliances that are constantly in use and require a lot of energy—so power strips are never recommended for most of these devices. “Microwaves can be a safety hazard when plugged into a power strip, causing a fire outbreak or even damaging your electrical system," says Dan Mock , vice president of operations at Mister Sparky. "Most power strips cannot handle the 12 to 15 amps needed to power up a microwave alone." The same goes for coffee makers and toasters. They might appear lightweight, but they use a lot of power that could overload a power strip and possibly cause a fire. “With toasters, there is a network of exposed wires inside, and much power is required to fire up these wires,” says Mock. Slow cookers and hot plates should be plugged directly into a wall outlet, too, since power strips are not designed to provide high amounts of electricity for long intervals of time. Mallory Micetich , a home expert at Angi, says refrigerators and other cooking appliances should be plugged into their own outlets. “If you don’t have enough outlets in your kitchen, consider talking to an electrician about adding more of them to the space,” says Micetich. Sump pumps can protect against basement flooding, prevent mold and mildew, and even reduce humidity levels in the home. ( Smith Collection/Gado/Getty Images) Space heaters, generators, sump pumps, air compressors When it's cold outside, many people pull out their space heater to warm up a specific part of their home. Space heaters require electricity to function and need to be plugged directly into the wall to run safely. Plugging it into a power strip or extension cord would be a mistake. Most power strips and extension cords are not designed to handle the high electrical current that a space heater draws. Worst-case scenario? The space heater can overheat the power strip or extension cord and, potentially, cause a fire. Along with space heaters, Micetich says, generators, sump pumps, and air compressors should also be plugged directly into outlets. “These appliances use a lot of energy and are considered fire hazards when plugged into an extension cord or power strip,” says Micetich. While sump pumps can be helpful in keeping basements dry during flooding, they may stop working if the power strip it is plugged into gets wet due to flooding. “To avoid such situations, have an electrician install a proper ground-fault circuit interrupter outlet on a wall above the expected flood level,” says Mock. With air-conditioning systems that require more energy than can be provided by a power strip, Mock suggests using a heavy-duty, properly rated extension cord that can ensure your AC functions properly to avoid overloading. Hair care appliances The appliances in the kitchen and living room aren't the only ones you need to worry about. The same safety criteria apply in the bathroom. “Hair dryers, curling wands, and straighteners need a lot of heat to function correctly,” says Mock. If you don't already have GFCI outlets in your bathroom, hire an electrician to install them so you can avoid accidental water exposure. Things to keep in mind before you plug in When using power strips or extension cords, always read the manufacturer's instructions and guidelines for safe use. “When using power strips, invest in one with a circuit breaker, which cuts power once demand overloads a power strip,” says Mock. Mock also advises replacing worn, old, or damaged extension cords right away. “It is important to know that extension cords are for temporary purposes only," he says. "Power strips can function for longer periods of time." #AdamsCameron #Since1963

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