Palouse Living, October 2020

Palouse LIVING Your resource for buying, selling and enjoying your home on the Palouse.

OCTOBER 2020

Inside:

Palouse Living is an advertising supplement of the Lewiston Tribune and Moscow-Pullman Daily News

HOW WE BOUGHT A HOUSE THAT WASN’T FOR SALE (AND HOW YOU CAN, TOO)

2 | October 3, 2020 | Moscow-Pullman Daily News & Lewiston Tribune

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Moscow-Pullman Daily News & Lewiston Tribune | October 3, 2020 | 3

How we bought a house that wasn’t for sale (and how you can, too)

By Kelsey Ogletree | Sep 23, 2020 www.Realtor.com

While trying to buy a house this summer, I assumed our real estate options were limited to homes that were ofcially for sale.

Well, guess what? We ended up buying a house that wasn’t even listed—and learned that this home-buying strategy wasn’t just possible, but often preferable if you’re purchasing property in a competitive market.

Here’s how we pulled it off, and how you can, too.

it went to another buyer (a relative of the seller).

Feeling at a loss, we scoured Florence

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Palouse LIVING Your resource for buying, selling and enjoying your home on the Palouse.

OCTOBER 2020

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Inside:

Palouse Living is an advertising supplement of the Lewiston Tribune and Moscow-Pullman Daily News

How to buy a house that isn’t on the market

Buying an unlisted house appears to be a growing trend in heated markets.

According to Pamela Ermen, president of Real Estate Guidance in Norfolk, VA, it’s called “going under the market,” which means digging into the housing inventory in a particular area to nd unlisted gems where the owners might be up for selling if they receive the right offer.

It’s just smart to “introduce yourself as a buyer to [a home] before you have to compete with other people for it,” says Ermen, who specializes in such listings.

Here are a few tactics that will help make this needle-in-haystack process a success.

Find a real estate agent willing to do some digging

How we bought an unlisted house

The backstory: My husband and I had been house hunting for months in Alabama, and had fallen in love with one particular property in the highly desirable historic district of Florence. We made an offer the same day we toured the house, only to be heartbroken upon learning that

process.

HOW WE BOUGHT A HOUSE THAT WASN’T FOR SALE (AND HOW YOU CAN, TOO)

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for other options, but nothing else was for sale—which made sense, because it’s a coveted area of the Shoals region.

Disappointed and tired of waiting for listings that seemed to sell within days of their going live, we asked our real estate agent, Jody Lanier with MarMac Real Estate, if he had any ideas.

That’s when he introduced the idea of looking beyond what was available on real estate listings sites.

We were game to try it out. So our real estate agent put out feelers, and soon found a 1917-built home that was on our perfect street. My husband and I fell in love with it the moment we set foot on the front porch and felt giddy stepping inside.

Basically, the sellers had named their asking price, and if we were interested, we could put in an offer for that amount—take it or leave it. Since the price was within our budget, we went for it, signing and submitting a typical home buyer’s contract that evening.

In the morning, we had more good news: They’d accepted!

It was a thrill to know that we’d gone under contract without having to compete against other buyers, saving us a lot of worry and disappointment in the offer

Buying a house that isn’t for sale takes more legwork on the agent’s end than usual. So for starters, you’ll want to make sure you have an agent willing to go the extra mile. Here are a few of the steps agents take.

Review expired listings: This is where your real estate agent digs through expired listings to see who once had their home on the market, checking to see if it ever sold. If it hasn’t, your agent can then reach out to the sellers and see if they’re open to selling now.

Check tax records: Your agent can also research tax records in a particular neighborhood to see who has a different address for tax returns than the property address. This suggests that the house is vacant or an investment property.

Send direct mail: This involves a real estate agent sending postcards to homeowners in the neighborhood or ZIP code you want to live in, inviting them to get in touch if they’re open to receiving offers on their home. Since part of the appeal might be that the sale could be easy and practically painless—no home staging or open houses needed—the postcard should emphasize that the agent has “fully qualied buyers” (like yourself) who are interested in a “quiet sale.”

Prospecting neighborhoods: This is where you and your agent drive around a particular neighborhood, writing down addresses of homes that, if they were on the market, you’d love to see. During the COVID-19 pandemic, buyers can also do this on their own, then pass the list of addresses to their agent, who can then reach out to these owners.

While a real estate agent will have to do

For Sale

continued on page 10

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4 | October 3, 2020 | Moscow-Pullman Daily News & Lewiston Tribune

6 Home upgrades buyers want in the coronavirus era

By Lauren Sieben | Sep 24, 2020 www.Realtor.com

If you imagined 2020 was the year you would nally list your house for sale, you may have hit the brakes on those plans when the coronavirus pandemic arrived.

But now, we’re more than six months into the COVID-19 era with no clear end in sight. As many people continue working and logging in to school from home, the real estate market is again heating up with buyers eager to upgrade to a new home.

So stop putting it off: Now is the time to step on the gas in preparing your home to sell. We talked with experts to learn which home improvements will hit the right note with buyers during the pandemic (and beyond).

1. Upgrade your outdoor space

Most of us are suffering from an acute case of cabin fever these days. It's little wonder that outdoor space has become more important than ever to prospective buyers.

“Even pools are becoming more popular in areas where they weren't before,” says Bill Walker, chief operating ofcer of Kukun, a web resource for home improvements.

That doesn’t mean you need to splurge on a new in-ground pool; even a minor landscaping refresh can make a big difference and increase curb appeal.

Depending on your budget and your neighborhood, you might also consider adding an in-ground re pit or outdoor

kitchen to maximize your outdoor space.

If you live in a cooler climate, extending the usability of your outdoor space will be a big draw for buyers.

“Get a low-cost outdoor heater and area rug to stage the space as an outdoor living room,” says Francie Malina, a real estate agent in New York's Westchester County.

2. Create a functional home office or classroom Many workers aren’t heading back to the ofce until 2021 or even later, which means home ofce space is at a premium, along

Upgrades

continued on page 10

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Moscow-Pullman Daily News & Lewiston Tribune | October 3, 2020 | 5

Moving to the country?

This overlooked loan makes it so easy

By Erica Sweeney | Sep 21, 2020 www.Realtor.com

With the COVID-19 pandemic still going strong, many city dwellers may be considering a move to the country—and there's a specic type of mortgage that can help make this a reality, called a USDA loan.

Offered by the U.S. Department of Agriculture and backed by the agency’s Rural Development Guaranteed Housing Loan Program, these mortgages are designed to help buyers with moderate or low income purchase property outside cities.

They accomplish this by offering several key benets—such as low or no down payments and looser qualications for income and credit history.

“More people should absolutely consider using USDA loans to nance their homes,” says Jan Hadder, regional vice president of the builder division at Silverton Mortgage in Columbia, SC. “If you’re not living in the city, this can be a great option to nance your home."

USDA loans could be a boon to the wave of buyers who are currently contemplating eeing cities right now.

As it happens, searches for homes in rural ZIP codes jumped more than 15% this May, compared with a year ago, according to realtor.com® data.

Yet many Americans aren’t aware of USDA loans, or assume that they don't qualify. They may also have other assumptions about these mortgages that aren't true or in step with recent changes in the terms.

If you want to avoid overlooking this hidden nancing gem, here are a few things to know about USDA loans today.

You don't have to buy a house in the boonies

The biggest misconception about USDA loans is that you have to live in the middle of nowhere.

In reality, homes qualify as long as they're located outside a metropolitan area.

In fact, communities with populations of up to 35,000 may be ne. The USDA offers an online map where you can search for properties that are eligible for the loans.

Matt Ronne, a loan originator at Motto

Mortgage Preferred Brokers in Athens, TN, says USDA loans are a “vital asset” to home buyers in his area of southeastern Tennessee.

“It has been a high-demand product,” he says. “My county, McMinn, and most of the surrounding counties are 100% eligible for this type of nancing, as long as those clients meet the credit, income, and property requirements.”

You don't have to be destitute—and income limits recently increased

"Many people think that the USDA loans are meant to be subsidized housing, or that they are only intended for use by those with very low income,” says Gwen Chambers, a mortgage loan originator at Motto Mortgage Superior in Germantown, TN. But that's not the case. There are actually two types of USDA loans.

Direct housing loans are for low-income individuals; guaranteed loans are designed for moderate-income buyers.

The USDA recently increased its income limits for loans, allowing more home buyers to be eligible. In most locations, the income limit for households with one to four people is $90,300, and $119,200 for households of ve to eight people.

"borrowers will hopefully have a better chance of getting approved.”

USDA loans aren't just for first-time buyers

Another misconception about USDA loans, Ronne says, is that they’re just for rst-time home buyers.

“USDA only allows a borrower to own one property at a time, so using the USDA loan program allows for additional purchases in the future, as long as the current home is sold, or will be sold prior to closing on the new one,” he says.

As long as buyers continue to qualify, they can use the USDA program as many times as they want, Chambers says.

USDA loans have great interest rates

Mortgage interest rates for traditional

loans have dropped to record lows in recent months, and now hover around 3%. The rates for USDA loans, however, are even lower.

As of Sept. 1, interest rates for Single Family Housing Direct Home Loans are 2.5% for low- and very low-income borrowers.

“The rates on USDA loans are often very competitive, and the fees are relatively low,” Chambers says. “In my community, consumers often nd USDA loans to be their go-to loan of choice.”

USDA loans carry few added costs

In addition to low interest rates, USDA loans offer families the opportunity to own a home with few out-of-pocket expenses, like closing costs.

In addition, certain USDA loans offer 100% nancing with no down payment, welcome news in today’s uncertain economy.

“Now, more than ever, because of the potential instability in the workforce over COVID-19 and possible future furloughs, layoffs, and cutbacks, having money in the bank to fall back on in case of emergencies has never been more important,” Ronne

Country

continued on page 10

USDA loans are easier to get than ever

The income limits have been raised, Hadder says, and some elements of the application process for certain USDA loans have been relaxed.

For example, in response to COVID-19, the period for which certicates of eligibility are valid has been extended for some borrowers, and some parts of the application process will be streamlined, including credit reviews and loan processing.

Although the specications vary by lender, borrowers typically need a minimum credit score of 640, whereas conventional home loans often require a credit score of 700 or higher.

“These new loan changes are designed to make it easier for a borrower to qualify for a USDA loan,” Hadder says.

Because certain parts of the application process will be waived or relaxed, she says,

Team Idaho

6 | October 3, 2020 | Moscow-Pullman Daily News & Lewiston Tribune

Your ticket to weekend fun:

how to build an outdoor theater for socially distanced movie nights Your Ticket to Weekend Fun: How To Build an Outdoor Theater for Socially Distanced Movie Nights

By Larissa Runkle | Sep 25, 2020 www.Realtor.com

As the COVID-19 pandemic has slogged on, we've been forced to think about ways to bring our cherished regular activities into our homes. Some of us have created the ultimate craft cocktail bar (and dare we say our Manhattan is as good as any we'd order on a night out). We've turned our living spaces into home ofces and virtual classrooms. We've added makeshift home gyms (which we may or may not use, ahem).

Now, we're rolling out the red carpet for the latest trend we're bringing home: the backyard movie theater. If you miss heading to the movies to catch the latest

blockbuster, then building an outdoor cinema of your own could be just the answer.

We spoke with designers and events producers from across the country to bring you this decisive guide to creating the ultimate outdoor movie theater at home.

Here's how to go from Netix on your laptop to big-screen movie marathons with friends—right in your own backyard.

Consider the neighbors before building an outdoor movie theater

Before you start planning out all your future movie nights, it’s a good idea to make sure you’re even allowed to have a theater in your outdoor space.

“It's important to check that your HOA or PUD allows an outdoor theater,” says Mike Quayle of Alaska Structures and

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Weatherport. “You may need to get the board to vote on your project or even speak with the city to determine if there are any penalties.”

Once you have the go-ahead from the right people, take it one step further and map out a theater that won’t become a nuisance to the neighbors.

“Consider which direction your neighbors are in, and position the screen and audio speakers away from them if possible,” says events producer Venetia Harpin.

Just keep in mind that even with the best positioning, sound will carry.

“Be courteous with the volume levels before you decide to embark on a midnight screening of 'Die Hard,'” she says.

Plan for size, location, sound, and other logistics

With the neighbors on board for your big-screen adventures, it’s time to start planning the size and dimensions of your outdoor theater.

“Ensure that your desired dimensions will work and look attractive in the space available,” says Quayle.

Although shopping for the biggest, baddest screens on the market might seem like a great idea, you’ll want to be sure the one you pick actually looks good—and isn’t just a giant eyesore.

Another thing to keep in mind when designing your theater is how you’ll power it.

“Keep in mind your power outlet locations, and how you’re going to install and store the projector, screen, and sound systems,” says Quayle.

Depending on where you live and what time of day or year you plan on hosting movie marathons, you may also want to consider installing a cover for your outdoor theater.

“You’ll want to create a space that shades not only the sun but also the rain,” he says.

A fabric stage cover like this one from Weatherport can be made longer, taller, or even shorter based on your needs.

And you’ll want to have a plan for keeping all of your equipment (and cords)

PALOUSE LIVING protected from the elements.

“Ensure all cabling and AV tech is properly weatherproofed,” says Harpin.

“Only use equipment that is designed for outdoor use, and ensure it’s all encased to avoid rusting, chewing rodents, and electrical shorts.”

How to shop for a cinema-worthy setup

You’ve planned out your theater, now comes the fun part: shopping for your projector, screen, speakers, and seating.

“First and foremost, you’ll need a powerful, bright projector capable of rendering large images with clarity,” says Asher Weinstein of ProjectorScreen.com.

“You’ll also need a projector screen or projectable surface, and some powerful speakers.”

When it comes to shopping for your projector and screens, there’s an option for every budget. On the more affordable end, this HD projector from GooDee offers a great picture for less than $200.

Keep your screen and speakers under budget as well by stringing up a plain white bedsheet and shopping this Fugoo Sport Bluetooth speaker ($89 from Amazon). If you’re looking to spend a bit more on your theater setup, this wireless projector by LG ($649 from Best Buy) runs for over two hours without needing a charge.

Finish up your space by transforming a blank wall with this projection screen paint ($299) or putting up one of these foldable Yard Master Pro screens by Elite ($499 from ProjectorScreen.com).

Don’t forget about the sound system: Immerse guests in their movie night with these Polk Audio outdoor speakers ($151 from Amazon).

Be sure to throw in some comfy seating for your movie-going guests. While you can always make it fancy with a few sectionalstyle outdoor sofas, you can also keep things simple by mixing and matching these outdoor poufs and beanbag chairs.

Keep your backyard movie theater COVID-19-safe

“To help make your new outdoor cinema a COVID[19]-compliant experience, stagger arrival times and clearly communicate your mask policy beforehand,” suggests Harpin.

Put out some hand sanitizer, and arrange seating to keep guests socially distanced.

Skip the snack bar, and opt instead for a BYOB-style event.

Encourage people to keep their distance and silence their phones. Then kick back, relax, and get ready to enjoy your movie night under the stars.

Larissa Runkle is a writer living on the road. She specializes in nance, real estate, and branded content creation.

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Exurbs vs. Suburbs:

Moscow-Pullman Daily News & Lewiston Tribune | October 3, 2020 | 7

do you know the difference?

By Nikki Gaskins | Sep 20, 2020 www.Realtor.com

Life in the exurbs

If city living sounds undesirable, buying in the suburbs or exurbs might be more your speed. While moving to the heart of a big city means being near major employers, top hospitals, schools, and culture, owning outside major metropolitan areas has a whole different set of advantages.

Exurbs and suburbs came about from a desire for more space and privacy within proximity of city features. And while suburbs and exurbs do share many similarities—more square footage, less noise, less pollution, more privacy—there are substantial differences.

For homeowners craving complete privacy, the exurbs are the way to go: You have more usable land, fewer industries or nearby neighbors, and less crime and noise pollution.

“Exurbs are great for someone who works from home or is looking for a second home/vacation property,” says McSherry.

However, exurbs tend to be spread out and less walkable than cities and many suburbs.

“Pedestrians tend to nd life more difcult in the exurbs. There are less likely to be sidewalks, and destinations are more likely to be beyond walking distance. This is particularly difcult for children and the elderly,” says John Wetmore, a producer for "Perils for Pedestrians," a TV program that looks at the problems confronting pedestrians in communities.

In the exurbs, the elderly are also more likely to become homebound if they lose the ability to drive.

The difference between exurbs and suburbs

The biggest distinction between these two types of communities is where they're located. Suburbs lie just outside of the city, whereas exurbs are areas farther out, beyond the suburbs. Exurbs tend to be situated in more rural areas. They can be near farmland or even the beach.

“Suburbs provide a functional lifestyle close to shopping, schools, and transportation,” says John McSherry, a New York real estate broker. “Exurbs provide a remote location free from noise and congestion.”

Life in the suburbs

One of the biggest advantages of life in the suburbs is that homeowners have full access to everything in the shadow of the city: Entertainment, restaurants, and topnotch medical facilities are still within a reasonable drive.

Even though many suburbs have excellent public transportation options, you will most likely need a car to get from Point A to Point B. A move to the suburbs may be difcult for those who've grown accustomed to the frenetic pace of the city. The good news is that the level of comfort and peace found in the suburbs often replaces the void over time. (Note: We did say "often.")

The future of suburbs and exurbs

According to research from the Urban Land Institute, the suburban housing market in the United States shows no signs of slowing down. As long as the demand for life outside the city remains high, the overow to the suburbs will continue, and those communities will expand outward.

Helping accelerate the growth: Technology makes it easier for more folks to work from home, sans the city commute.

However, as growth into major metropolitan areas extends beyond the city, Dave Hyman, a Re/Max real estate agent in Encinitas, CA, predicts that some suburbs and exurbs will naturally be absorbed, perhaps becoming their own incorporated entity or merging with a nearby municipality.

"Even as cities expand, new suburbs and exurbs, beyond the current ones, will naturally come into being," he says.

Nikki Gaskins is an Emmy-nominated journalist. She graduated from the University of South Carolina with a degree in broadcast journalism.

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8 | October 3, 2020 | Moscow-Pullman Daily News & Lewiston Tribune

How to make your home office space a huge selling point

By Lisa Marie Conklin | Sep 10, 2020 www.Realtor.com

It's been six months since many of us were last in the ofce, tapping away on our ergonomic keyboards and drawing on whiteboards in conference rooms during (gasp!) in-person meetings.

Since then, we've been forced to nd a new path forward in our homes, to create feasible workspaces where there really are none. And frankly, the kitchen table just isn't cutting it anymore.

Buyer demand for home ofce space has accelerated during the pandemic.

In a realtor.com® survey conducted this summer, 63% of respondents indicated that they plan to buy a new home in light of their ability to work remotely. And, on average, listings featuring a home ofce command a 3.4% price premium and sell nine days faster than listings without one, according to realtor.com data.

"Showcasing a dedicated working area can help attract buyers to your property," says Jennifer Smith, a real estate agent at

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So, sellers, take note: If you have a home ofce, now's the time to promote it. Here's how to set up a space that will bring in the buyers and seal the deal.

Be mindful when converting a room into a home office

If you don't have an ofcial home ofce, you might be frantically looking around your house, wondering which room could be converted into a workspace. But before you go all in swapping out guest beds for built-in desks and bookshelves, know this: While buyers are looking for home ofce space, bedrooms still take priority, according to real estate agent Susan Bozinovic of Century 21 Town & Country. And you could inadvertently turn off buyers if one of your three bedrooms suddenly works only as a home ofce.

Instead, look for opportunities to create dual-purpose spaces. After all, you're probably not entertaining many guests during the pandemic (we hope), so now's a great time to create a combination guest room and ofce. Remove the bed, and replace it with a sleeper sofa or love seat.

"This will result in less visual clutter while you're working in the room, but allow it to easily be transformed back to a bedroom for guests," says Smith.

Choose a free-standing desk to t the space without overwhelming it. Or consider a wall-mounted desk as an alternative.

"They can be installed in virtually any room of a home and can be easily put away when not in use," says Smith.

And don't forget to update the closet.

"Maximize your closet space with shelves and containers to store ofce and bedroom supplies, while also making the space available to store your guests' belongings," recommends Smith.

Short on bedrooms? Try carving out space in another area such as the dining room. Keep the dining table, but remove the buffet or remove the leaves in the table and extra chairs to make room for a chair and desk.

"As a seller, you are not erasing the dining room, but signaling to the buyer that the room can be repurposed further to suit an ofce," says Bozinovic.

Pick a quiet area

The noisy central hub of any home is hardly conducive to productivity, so setting up a workspace in the kitchen or the TV room isn't likely to woo buyers. If you currently don't have a designated home ofce, consider the location when staging one.

"It's best to choose a room with adequate space that's far from the main living spaces and not frequented by family members or guests," Smith advises.

Transform an unused area into a workspace

Take a look around at the underused areas in your home, and you can probably nd a place to carve out a workspace buyers will covet. If you have a nished, walkout basement, you can turn that into a comfy and private workspace. The area underneath the staircase or the dead space at the top of a staircase, or even an alcove, makes a compact ofce.

If you have no choice but to set up a home ofce in the main area of the house, present it in the most appealing way possible.

"Separate the work area from the rest of the room with portable dividers such as a curtain, a folding screen, partition wall, or even tall houseplants," says Smith.

Keep the area tidy, and neatly bundle up computer and extension cords. Illuminate a poorly lit zone with a small desk lamp.

Flaunt connectivity

If you have access to dependable and fast internet, aunt it. Buyers are looking to make sure there are enough outlets, ways

Work

continued on page 11

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Moscow-Pullman Daily News & Lewiston Tribune | October 3, 2020 | 9

Why I’m grown-up and employed, but still need mom to co-sign on my home Why I'm Grown-Up and Employed, but Still Need Mom to Co-Sign on My Home

By Jillian Pretzel | Aug 19, 2020 www.Realtor.com

When I got my rst apartment after college, I needed my mom to co-sign my lease.

The landlord required proof that I made three times the rent, but since I wasn’t making nearly enough, I called Mom to sign on that second dotted line.

Then, in my mid-20s, when I bought my rst condo, I needed a co-signer again.

Once again, my mom was there for me.

Now I'm almost 30, married, and expecting our rst child. Both my husband and I are gainfully employed and have good credit histories, so you'd think we wouldn't need any parent co-signing for us to rent a home! But alas, we'd recently moved to New York City, where rents were so high, snagging a half-way decent apartment would require Mom to co-sign once again.

What's going on? Would I need my mother to co-sign forever?

Of course, I feel lucky to have a parent who’s so supportive. But I can’t help but think that there’s something wrong with me, where I was choosing to live, or perhaps the housing system in general.

So, I started looking into why co-signing is so often required, even in cases where it seems unnecessary. Here’s what I learned, and some words of wisdom from experts that could help you get through the inconvenient (and embarrassing) cycle.

Why co-signers are required

What bothered me most about needing a co-signer was that I felt like I wasn’t being taken seriously as a tenant. I had a good job and a college degree, why couldn’t I be trusted to pay my rent?

As it turns out, many people face this problem.

While landlords may have differing requirements, the industry standard is that your take-home income must be three times what you pay in rent. So if you make $3,000 a month, your monthly rent should

not exceed $1,000.

But is this realistic with today's runaway rent prices?

For instance, in 2013, as a fresh college graduate, I paid $1,600 a month for a one-bedroom, third-oor walk-up in Los Angeles. So based on the three-times rule, I should have been earning $4,800 a month, or $57,600 a year.

A salary that size was an unattainable dream for me right out of college. Even though I had a great sales job and a minimum-wage side hustle, I was making only about twice the annual rent, or $40,000.

And I was one of the lucky ones. The minimum wage in California is $12 an hour, but in 2013 it was $8. To afford a monthly rent of $1,600 in 2013, a minimum-wage worker would have needed to put in 150 hours a week.

“The income of many people, particularly younger adults, has not kept up with home prices in many areas,” says Andrew Latham, managing editor of SuperMoney. "This is why millennials have lower homeownership rates than previous generations.”

Plus, experts say that most landlords (even the nice ones) don’t necessarily care if people aren’t making as much money as they used to. They care more about nding a renter who will be able to pay their rent on time. And if that means sticking to the tried-and-true method of renting to those who can prove they have plenty of income to spare, or can at least get a co-signer, they’ll do it.

How I pay my rent without a co-signer today

While it's tough for young renters and home buyers almost everywhere to cover their housing costs, it's even worse in New York City.

Sure, my mom agreed to co-sign the lease, as always. Yet with a baby on the way, my husband and I decided that, rather than taking my mom up on her kind offer, I'd try to nd an apartment with a rent that fell comfortably within the three-times rule.

We started crossing things off our wish list. We moved our search from Manhattan to Brooklyn. We stopped looking at homes near subway stations and cute cafes and started touring apartments that were a bit farther out. In the end, we found a studio we liked, and the low rent didn't require a co-signer.

For more smart nancial news and advice, head over to MarketWatch.

Jillian Pretzel is a Southern California writer who covers lifestyle, relationships, home, and money management.

Is the three-times rent rule realistic?

Because I needed a co-signer, I couldn't help but wonder about the three-times rent rule, and the reason for it. Did this mean I'd overextended myself?

As it turns out, I had no reason for worry. With a monthly rent of $1,600, I had another $1,600 left for other expenses, and it was more than enough.

So I started wondering: If twice my income worked just ne for my bills, why do landlords want proof that renters make three times their rent?

“The exact origins of the three-times rule is unknown,” says Michael Dinich of Your Money Geek. Nonetheless, this rule has remained the industry standard—for renters and home buyers alike.

“Mortgage lenders have often used the guideline that housing costs should be no more than 30% of income," Dinich says. "The three-times rule is likely a handy approximation based on those old guidelines.”

This guideline may even contribute to younger generations' low rates of homeownership.

Latah Realty

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10 | October 3, 2020 | Moscow-Pullman Daily News & Lewiston Tribune

Upgrades

continued from page 4 with space for kids to log in to their virtual classrooms.

“People need a dedicated space for multiple people to be able to be on calls at the same time,” says Walker, who currently works at home alongside his wife, and his kids attending school virtually. “It denitely creates challenges when we all need to be on calls and need space to work.

Even if you don’t need two home ofces or a remote learning station for your own family, consider staging your home to show the possibilities for buyers.

“Staging a guest bedroom as a home ofce or classroom is a good idea,” Walker says. “The potential buyer can see the room being used in a versatile way and visualize it for themselves.”

Plus, most of us host guests in our guest rooms for less than a month per year, Walker says—and probably even less during the pandemic.

3. Add separation of space

“Open oor plans are losing a bit of luster,” Malina says. “Homeowners are looking for distinct spaces for family members to work or study.”

If your space isn’t well-segmented, you may want to create separate spaces by adding barn doors or pocket doors—or even room dividers

for a quick and easy solution.

Having distinct rooms helps to minimize volume from other people’s activities, and can also create a different feeling in each part of the house.

“As people are spending more time at home, they want room and different environments to not feel stuck inside,” Walker says.

4. Add space for a home gym

Many people are forgoing the gym during the pandemic, preferring to work up a sweat from home to minimize risks of coronavirus transmission. That means people are looking for space to house gym equipment, from yoga mats to treadmills and stationary bikes.

Your home may not have the space for a fully equipped home gym, but you can still carve out a corner where home buyers will be able to picture their future at-home HIIT workouts or yoga ows.

5. Give your in-law suite a makeover

If you have a guest house, this can be an attractive feature for buyers right now— especially those with multigenerational households, or people looking for a potential source of rental income.

“With people bringing elderly family members home, [additional dwelling units] are a good option, especially if there is a kitchen and bathroom,” Walker says. “Even if this

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space isn't used for personal reasons, it can be an investment property.”

6. Spruce up the laundry room

Concerns about cleanliness and hygiene have been at an all-time high during the pandemic, which means “laundry rooms are more important than pre-COVID,” Malina says.

People are doing laundry more often after

Country

continued from page 5 says.

“Personally, as a mortgage broker, I never want to see a buyer exhaust their savings for a down payment when they may not have to, especially a rst-time home buyer,” he says.

More investment in rural communities benefits homeowners

The USDA loan programs can also give rural homeowners a boost indirectly. The agency recently announced new initiatives to increase private investment in rural communities across the country, Hadder says.

For Sale

continued from page 3 many of the above tactics, there’s plenty home buyers can do as well to improve the odds of nding an unlisted property they’d love to purchase. Here are a few tactics we tried.

Commit to buying a house in a particular area

If a real estate agent is willing to go the extra mile to nd you an off-market home, pledging your commitment to that person is a no-brainer. Stay loyal to that agent so his or her work will pay off.

In our case, our real estate agent showed us about 15 homes this summer, so we knew we’d work only with him on a sale to make it worth his time.

Be flexible

When an agent nds you an off-market home, be ready and willing to go see it at a moment’s notice. In our case, our agent urged us to go ASAP, before the sellers potentially changed their mind about selling. Ermen says she once showed an offmarket home at 10 p.m.

Work out your mortgage ahead of time

Ermen says it’s a good idea to get preapproved for a home loan, and have that letter from the bank in hand to submit with your offer. This proves you’re serious, and can put your money where your mouth is.

running errands, and many of us have become more diligent about washing our bed linens.

Plus, who couldn’t use more room for ironing, folding, and hang-drying clothes?

“Having a dedicated space to do laundry is a wonderful luxury, and buyers often want the space to be beautiful like the rest of their homes,” Malina says.

Lauren Sieben is a writer in Milwaukee. Her work has appeared in the Guardian, Washington Post, Milwaukee Magazine, and other outlets.

This includes changes to four of its business loan programs to standardize the requirements for loan processing, credit review, loan service, and loss claims.

These measures could help rural homeowners. New investment could add new jobs to an area, create better schools, and boost local economies.

This could increase property values and attract new residents to the area—all good news for local homeowners.

For more smart nancial news and advice, head over to MarketWatch.

Erica Sweeney is a writer whose work has appeared in the New York Times, Parade, HuffPost, and other publications.

Decide what you’re willing to do Get crystal-clear on your budget and what you’re willing (and not willing) to do to get a home before going the route of an off-market listing, says Ermen.

The nice part about buying a home this way means that you’ll hopefully avoid lots of back-and-forth negotiating, as in a typical sale, and the worry that you’re competing with other buyers. But that doesn’t mean you can necessarily go in with an offer far below asking. If you’re in a competitive market, you’ll need to ask yourself: What am I willing to do to buy this house?

Don’t assume your seller won’t play the field

Even if you’re the rst buyer to come knocking at a homeowner’s door, don’t assume things will stay that way once you’ve piqued the seller’s interest in selling.

“You have to assume that a seller is astute enough to know that they might get more money with more competition,” explains Ermen.

You’re also going to have to be prepared to make an offer quickly, as we did. Be fair, legitimate, and direct in your offers.

“You know what they say,” Ermen says.

“If you’re going to sleep on it, you won’t sleep in it.”

Kelsey Ogletree writes about travel, wellness, and food for national publications such as Realtor, the Wall Street Journal, AARP, Shape, and Conde Nast Traveler. Follow @ kbogletree on Instagram.

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Moscow-Pullman Daily News & Lewiston Tribune | October 3, 2020 | 11

But the ofce shouldn't be too bland. Create ambiance with pops of color continued from page 8 in ofce essentials such as to minimize cords, and an area rug, houseplants in locations for wall-mounted pretty pots, or fresh owers. routers, Bozinovic says.

If blinds are the only Also critically important window covering, consider is the quality of the Wi-Fi. buying some curtains or Buyers want dependable drapes to add warmth. Be and fast internet with ample sure to raise blinds, draw bandwidth to be productive the curtains to the side to at home. allow natural light, and feature a lovely view if you Stage your home office have one. as you would the The desk should be rest of your house featured prominently in the room, Bozinovic says.

If you already have a After all, it is the main dedicated home ofce, the component. Facing the desk time-honored advice of to the entrance looks more staging—beginning with a dramatic, hides background clean and clutter-free space, clutter, and enhances the void of personal objects— room's purpose—all while stands true. If needed, offering a welcoming invest in fashionable, atmosphere. functional ofce storage options like wall shelves or a Lisa Marie Conklin knows a little something about moving. She's moved ling cabinet, Smith says. eight times in the past 10 years but "For decorating and currently calls Baltimore home. She writes for Reader's Digest, Family design, it's best to keep Handyman, The Healthy, Taste of colors neutral and avoid Home, and MSN. bright paint or busy patterns on the walls," she adds.

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FINDING HOMES FOR HOME’S BEST FRIEND Coldwell Banker

Both the Moscow and Pullman offices have teamed up with the Humane Society of the Palouse and the Whitman County Humane Society to help find homes for local dogs and cats. For the month of October both offices will be paying the adoption fees for 2 cats and 2 dogs at both locations. Call today to find out how you can bring home a new furry friend!

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